Jakarta, Indonesia Sentinel — Finance Minister Sri Mulyani Indrawati has announced plans to issue government debt financing through State Securities (SBN) for housing as part of its efforts to support President Prabowo’s three million homes program for low-income communities.
Sri Mulyani made the announcement following a meeting with Housing and Residential Area Minister Maruarar Sirait, Deputy Minister of State-Owned Enterprises (BUMN) Dony Oskaria, Bank Indonesia Governor Perry Warjiyo, and Chairman of the House of Representatives Commission XI Mukhamad Misbakhun.
“Today, we discussed ways to enhance support for low-income housing by issuing housing state securities, which will be allocated primarily for financing this initiative,” she said during a press conference on Thursday, February 20, as reported by VoI.
The financing mechanism, she explained, is a modification of the Housing Finance Liquidity Facility (FLPP), which will see an increase in funding volume. She emphasized the importance of integrating fiscal and monetary instruments to achieve the target of building three million homes.
Government Initiatives
This new policy is an addition to various government initiatives funded through the state budget (APBN) to support housing development across the country, especially President Prabowo’s three million homes program for low-income communities.
According to CNBC Indonesia, the government has allocated a quota for the Liquidity Facility for Housing Finance (FLPP), a low-interest APBN-funded program distributed through the Public Housing Savings Program (Tapera) and the banking sector.
Additionally, the government has provided state capital injections (PMN) to the state-owned Secondary Mortgage Facility (PT SMF), blending these funds with banking sector financing to make housing development more affordable.
“The primary goal is to assist low-income communities. For low-income households, these subsidized homes must be financed with the most affordable funds, which come directly from the state budget,” Sri Mulyani said.
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Strengthen Housing Sector Financing
Furthermore, the Ministry of Finance is collaborating with Bank Indonesia, the Financial Services Authority (OJK), and the Association of State-Owned Banks (Himbara) to strengthen housing sector financing. This includes credit facilities utilizing the Minimum Reserve Requirement (GWM) with an allocation of up to Rp80 trillion ($5.2 billion).
“With these measures, we hope to increase the purchasing power of individuals looking to buy homes, whether through subsidized or commercial financing,” Sri Mulyani added.
The government remains committed to developing creative financing instruments that ensure fiscal discipline while maximizing support for the housing sector and broader economic growth.
(Raidi/Agung)
