Heaptalk, Subang — In a landmark initiative aimed at improving the welfare of Indonesian migrant workers, the Ministry of Housing and Settlement Areas (PKP) officially launched a subsidized housing program in Subang, West Java on Thursday. The program, developed in collaboration with the Ministry for the Protection of Indonesian Migrant Workers (P2MI), sets aside 20,000 subsidized homes under the government’s affordable housing scheme (KPR FLPP) for overseas Indonesian workers.
The initiative is part of President Prabowo Subianto’s nationwide 3 Million Housing Program, which aims to make quality housing accessible to all Indonesians, especially low-income groups.
“This is a golden opportunity for migrant workers to finally own their dream homes,” said Imran, Director General for Rural Housing at the PKP Ministry, speaking on behalf of Minister PKP during the launch event. “President Prabowo is committed to uplifting the lives of ordinary people, and decent housing is a crucial element of that.”
Under the program, migrant workers can purchase homes with a government-subsidized mortgage, enjoy exemption from land and building title fees (BPHTB), accelerated building permit issuance (reduced from 45 days to 10), and value-added tax (VAT) waivers for houses priced up to Rp 2 billion.
The program is also seen as a tribute to the country’s overseas workers, often referred to as pahlawan devisa (foreign exchange heroes), for their vital contribution to the national economy.
“On average, migrant workers in Korea and Japan earn between Rp 15 million and Rp 25 million per month,” said P2MI Minister Abdul Kadir Karding. “With remittances reaching Rp 253.3 trillion last year, they are the second-largest source of foreign income after oil and gas.”
Karding noted that this housing initiative is historic, marking the first time a government program directly targets housing for overseas workers. “Despite being planned just a month ago, it’s already being realized thanks to cross-ministerial coordination,” he added.
According to government data, around 5 million Indonesians are working abroad. The subsidized housing program will be made available nationwide to ensure equal access for all migrant workers, regardless of where they are deployed.
One beneficiary, Nurlia, a former domestic worker in Hong Kong, said the program made her dream of home ownership possible. “It’s difficult for us to buy land, especially with high property prices. This program gives us a chance to own a house through a subsidized mortgage,” she said.
Local officials have expressed strong support for the initiative. Subang Regent Reynaldi Putra Andita said the program aligns with his administration’s goal of making the regency more competitive and inclusive. “This is the government’s way of showing real care for our migrant workers, who sacrifice so much for their families and the nation,” he said.
The program is also being backed by Bank Negara Indonesia (BNI), which has opened branches in seven countries—including Hong Kong, Tokyo, and New York—to better serve migrant workers abroad. BNI currently manages 350,000 accounts belonging to Indonesian workers and has begun integrating housing literacy into its overseas outreach.
During the launch, BNI also signed a memorandum of understanding (MoU) with the PKP Ministry, P2MI, and BP Tapera to streamline the financing process. Additionally, 130 migrant workers—40 onsite and 90 joining virtually from Hong Kong and Taiwan—signed home loan agreements.
Wahyudi, a resident of Legon Kulon district in Subang, said his daughter Siti Fitriani, a domestic worker in Taiwan for seven years, had finally fulfilled her long-held dream of owning a home.
“She bought a 30/72 home for Rp 166 million, with a monthly mortgage of Rp 1.2 million. She sends home about Rp 4 million every month. Now, she’ll have her own house to return to when she comes back,” he said, adding that the house, located in Bumi Pagaden Permai 3, comes with two bedrooms, a bathroom, and ample public facilities.
The development is being constructed by PT Harva Jaya Mandiri Coco Mintaria, which is optimistic that the program will drive up subsidized housing sales in Subang. The project covers 5 hectares with 402 houses planned, 308 of which are subsidized units priced according to the West Java FLPP ceiling.
“In the past, banks were hesitant to grant home loans to migrant workers. But with this new program, the process has become much easier,” said the company’s general manager. “We’re fully committed to continuing this initiative and expanding outreach through social media and traditional channels.”
