Indonesia Accelerates 3 Million Houses Program with New Joint Decree

Indonesia's Minister of Home Affairs, Muhammad Tito Karnavian, and the Minister of Public Housing and Settlement Areas, Maruarar Sirait, have signed a joint decree to expedite the "3 Million Houses" program. This initiative is a flagship project of President Prabowo Subianto, aimed at providing affordable housing for low-income communities (MBR).

The signing ceremony took place in Jakarta, establishing a stronger legal framework for regional governments to support the program. Since the start of the administration, the government has been working to make housing more accessible. Measures include exemptions on building permit fees and land and building acquisition taxes. The program also adjusts eligibility criteria for MBRs to better reflect diverse economic realities across the country.

Minister Karnavian explained that the decree, effective November 25, 2024, aims to simplify the process for citizens and developers to build or provide housing for low-income individuals at lower costs. The updated classifications redefine MBRs by dividing regions into four zones instead of two. This adjustment ensures that eligibility criteria align with local economic conditions, broadening access to the housing program.

For example, the income threshold for unmarried individuals in Zone 1 increased from 7 million to 8.5 million rupiah, and for married individuals from 8 million to 10 million rupiah. In the special economic zone of Jakarta, Bogor, Depok, Tangerang, and Bekasi (Jabodetabek), where land is scarce and expensive, the thresholds are higher: 12 million rupiah for unmarried individuals and 14 million rupiah for married individuals.

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This decree aims to simplify the process for citizens to obtain and build homes, and for developers to build homes for low-income communities at lower prices.