Heaptalk, Jakarta — Indonesia’s Ministry of Public Works and Public Housing (PUPR) admitted that Indonesian Capital City (IKN) possessed promising potential regarding investment in the housing and property sector. Based on Presidential Regulation Number 63/2022 concerning details of the Archipelago Capital Master Plan, the housing requirement is estimated to reach 16,000 units.
As stated by the Director General of Housing of the Ministry of PUPR, Iwan Suprijanto, “The government is opening up opportunities for investment in the housing and property sectors in the archipelago’s capital city (IKN). The need for housing in IKN is tremendous because the center of government will move, followed by State Civil Apparatus (ASN) and society.”
In his further statement, the early phase of housing development in the new country’s capital will be developed around 2,500 units through the state budget’s (APBN) contribution and about 3,000 units through the Government and Business Entity Cooperation (KPBU) scheme.
Besides, the government also provides fiscal and non-fiscal incentives support devoted to the IKN’s investors following the provisions of Presidential Regulation number 12 of 2023, including tax incentives, special tax facilities, special revenues, land, and infrastructure provisions.
“When building houses and various facilities, you need to be concerned with the sustainability and preservation of the existing environment. This point is under the concept of more innovative and greener IKN development,” added Iwan.
Meanwhile, The Director of Public and Commercial Housing of the Directorate General of Housing, Fitrah Nur, revealed that the government also continues to cooperate with various partners from developer and banking associations with multiple policies that can strengthen housing and property growth in the archipelago.
For information, based on the 2020 – 2024 RPJMN, the government targets households to occupy adequate housing by 2024 through direct and indirect government intervention. This matter aims to resolve the existing challenges in housing management. Refers to the Susenas 2021, home ownership data has reached 12.71 million units, with the growth of new family heads reaching 700,000 – 800,000 per year.
The Ministry is currently involved in plans to move the capital through the preparation of several basic infrastructures. In the housing sector, the Ministry of PUPR has developed Construction Worker Housing (HPK) as temporary housing that can accommodate up to 16,000 construction workers at IKN. On the other hand, the government has also built 36 units of the House of Ministries’ Office (RTJM) and immediately initiated the construction of the flat for ASN, TNI, and POLRI in the KIPP IKN zone.
“We look forward to Indonesian entrepreneurs in this industry contributing to building houses and multiple supporting facilities, which are expected to create a more inclusive urban ecosystem and restore the national economy by creating job opportunities for the community,” Fitrah concluded.
Translated by Syifa
