December 30, 2025 | 09:43 pm
TEMPO.CO, Jakarta - Deputy Minister of Housing and Settlement Area, Fahri Hamzah, stated that the Indonesian government plans to establish an agency to accelerate housing development. The agency will oversee the entire housing development process, from obtaining permits and acquiring land to financing housing.
Fahri conveyed this after meeting with President Prabowo Subianto at the State Palace in Central Jakarta, on Tuesday, December 30, 2025. The meeting discussed the establishment of an agency to expedite the housing program targets.
"There is a mandate from several laws for the establishment of the housing development acceleration agency. Essentially, the agency will take over land-related issues," he said at the Presidential Palace complex, Central Jakarta, on Tuesday, December 30, 2025.
The Deputy Chair of the Gelora Party mentioned that the housing development process has so far involved various ministries and institutions. The process includes permit arrangements, land issues, and financing. According to Fahri, there needs to be an agency that consolidates all the needs for housing development. "The goal is to accelerate housing development," he said.
Fahri stated that Prabowo intends to accelerate housing development next year, especially as the 2026 State Budget has been allocated to renovate 400,000 houses.
The government also has a program to build three million houses, one million of which will be in urban areas. Regarding this, the formation of the agency is needed to address land availability issues in urban areas.
The government is currently designing this agency's establishment. It is also formulating the legal framework of the agency. "We are currently designing the concept in the form of the necessary regulations. It might be at the level of a presidential regulation or governmental regulation," he said.
Fahri admitted to coordinating with the Minister of State Secretary Prasetyo Hadi, the Minister of Administrative and Bureaucratic Reform Rini Widyantini, and Danantara regarding the establishment of this agency.
"I also coordinated with Danantara because they are one of the most massive land providers, especially for the Transit Oriented Development concept," he said.
Fahri Hamzah previously stated that the 3-million-house program will commence in early 2026. According to him, the government has already budgeted for this program, so next year, the government is ready to implement the 3-million-house program.
"This is on the way; we will handle land matters. The funds for 2 million houses are available and will be implemented next year, and we will strive for the other 1 million, which will involve other parties," he said.
Fahri revealed that the financing of this program will involve various sources, including the State Budget prepared by the Ministry of Finance and other creative financing schemes. "This is not solely a state project because the public also pays, so the funds have started to come in. There are various patterns, and we have prepared for that, including for renovations," Fahri said.
In addition, according to Fahri Hamzah, the plan for constructing 3 million houses must be more comprehensive to ensure it meets the target. This includes the selection of cheaper and strategic land, as well as designs that align with the standards of urban community needs throughout Indonesia.
Fahri explained that within the framework of this program, there are plans for the renovation of 2 million houses, the arrangement of off-takers for 1 million units through cooperation with Danantara and SOEs, and the rest will be used to finance the renovation of areas through submitted foreign loans.
The 3 Million House Program is an initiative of President Prabowo Subianto. He plans to build 2 million houses in rural areas and 1 million in urban areas. In order to carry out this program, Prabowo established the Ministry of Housing and Settlement Areas and appointed Maruarar Sirait as its leader. Previously, in the era of President Jokowi's administration, housing affairs were under the Ministry of Public Works and People's Housing (PUPR).
Riri Rahayuningsih contributed to the writing of this article
Read: Danantara to Build 15,000 Homes for Sumatra Refugees
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