Heaptalk, Jakarta – Indonesia’s Minister of Public Housing and Settlement Areas (PKP), Maruarar Sirait, announced that the government has finalized the budget allocation for the Housing Financing Liquidity Facility (FLPP) 2025, targeting the construction of 350,000 subsidized housing units for low-income families (MBR).
Speaking at a coordination meeting on FLPP 2025 strategy held at the Ministry of Finance’s Directorate General of State Assets (DJKN) on May 27, Maruarar said the initiative is backed by strong institutional support.
“I’ve received 100 percent backing from President Prabowo Subianto, the Ministry of Finance, Bank Indonesia, and the House of Representatives. The funding for FLPP is ready, and so is the program implementation,” said the Minister of PKP.
Following this announcement, Heru Pudyo, Commissioner of BP Tapera, emphasized that the increase in housing quota is accompanied by this significant budget expansion. “The FLPP budget has been raised from Rp28.2 trillion to Rp35.2 trillion,” said Heru.
A Boost for Affordable Housing and Job Creation
The FLPP program is part of the national 3 Million Housing Program, designed to enhance housing accessibility for low-income citizens while supporting economic recovery through job creation in the housing sector.
Maruarar highlighted that the ripple effect of the subsidized housing initiative goes beyond the construction of homes, fueling economic activity across industries. “Each house typically involves five construction workers. That means building 350,000 homes can employ up to 1.7 million workers. This doesn’t even count drivers, logistics, and local food vendors who benefit from the construction ecosystem,” he explained.
FLPP Performance Soars in Q1 2025
The FLPP 2025 program is already showing results. BP Tapera reported that 53,874 housing units were funded in the first quarter of 2025—an astounding 1,173.92% increase compared to just 4,229 units in the same period last year.
“This marks the highest-ever FLPP realization. It confirms that the government’s housing strategy is both pro-people and effective in raising living standards. It’s a strong signal to housing developers to prepare sufficient inventory,” said Maruarar.
Government Reinforces Commitment to Inclusive Housing
By ensuring fixed and affordable mortgage rates through the FLPP program, the government is reaffirming its pledge to provide decent, livable homes for the underprivileged. Maruarar emphasized that rumah subsidi 2025 is a reflection of President Prabowo’s commitment to social equity and economic growth.
“This initiative proves that the state is present in solving housing inequality while stimulating the economy. It’s not just a housing program—it’s a movement toward a more equitable and prosperous Indonesia,” he concluded.
