Jakarta, Indonesia Sentinel — Indonesia’s Minister of State-Owned Enterprises (BUMN), Erick Thohir, has pledged support for President Prabowo Subianto’s ambitious program to construct 3 million house. As a first step, the Ministry of BUMN has begun mapping out land owned by the Ministry that could be used for housing projects.
“Minister of Housing and Settlement, Maruarar Sirait (Ara) recently visited us. Similar to his approach, we’re currently identifying land that can support this accelerated housing initiative,” Erick said during a press conference at the Ministry of BUMN in Central Jakarta on Friday, November 15.
Erick stated that his ministry had already begun the initiative by collaborating with the Ministry of Public Works (PU) to optimize underutilized land, particularly around train stations, and transforming it into transit-oriented developments (TOD). According to Erick, this approach not only maximizes land use but also supports affordable housing.
“We’ve made an initiative move with the Ministry of Public Works by developing TOD projects on previously underutilized land around railway stations. These areas now offer housing options with subsidies for both low- and middle-income families,” Erick explained.
Utilizing Confiscated Land from Corruption Cases
To further support President Prabowo 3 million house program, Erick and Minister Ara expanding the search for land resources. This includes identifying plots seized from corruption cases and other underdeveloped properties.
“Minister Ara is mapping out areas for public housing. He’s also pushing for the utilization of confiscated land, such as assets recovered from corruption cases, or unused land that can be repurposed for building these 3 million homes,” Erick added.
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Responding to this initiative, the Ministry of Finance has already given the green light for the use of assets seized from corrupt officials to be redirected towards public housing projects.
Rionald Silaban, the Director General of State Assets at the Ministry of Finance, emphasized that confiscated assets, once legally transferred to the state, can be fully utilized for government programs, including housing.
“Assets that have been seized and are now state property can definitely be used for housing development,” Silaban said at the Office of the Coordinating Ministry for Infrastructure and Regional Development on Friday, as reported by IDNTimes.
Reducing Housing Costs and Extending Mortgage Terms
Erick Thohir highlighted that by optimizing land owned by ministry of BUMN and utilizing confiscated assets, the government aims to significantly reduce the cost of homeownership and rental rates for the public.
“The goal is to lower the prices of these homes by using land that doesn’t need to be purchased,” Erick noted.
Additionally, Erick proposed extending mortgage repayment terms from the current 15 years to 30 years. This adjustment, he believes, will alleviate financial burdens on potential homeowners, making it easier for Indonesians to afford their own homes.
“We’re advocating for longer mortgage terms, extending them from 15 to 30 years, which will have a positive impact on the economy,” Erick concluded.
The initiative to optimizing underutilized land owned by Ministry like BUMN and repurpose confiscated land from corruption cases for public housing not only addresses Indonesia’s housing needs for President Prabowo 3 million house program, but also confirms Indonesia’s broader commitment to realizing it.
(Raidi/Agung)
