Indonesia's Ambitious Subsidized Housing Plan for 2026

Government Sets Target for 285,000 Units

The Indonesian government, through the Housing Savings Management Agency (BP Tapera), has set an ambitious target to distribute 285,000 subsidized housing units in 2026 through the Fasilitas Likuiditas Pembiayaan Perumahan (FLPP) scheme ¹

. This initiative is backed by a substantial budget of Rp 37.1 trillion, demonstrating the government's commitment to addressing the housing backlog.

Funding Structure for the Initiative

The massive funding requirement of Rp 37.1 trillion will be met through multiple sources. The breakdown includes Rp 25.1 trillion from the DIPA budget, Rp 10.4 trillion from revolving funds (principal repayments), and Rp 1.6 trillion from the initial balance of 2026. This diversified funding approach ensures the financial sustainability of the program ¹

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Strategic Partnership with Banking Sector

To achieve the target, BP Tapera has strategically partnered with 43 banks, comprising five state-owned banks, four private banks, and 33 regional development banks (BPD). This collaboration is formalized through a Cooperation Agreement (PKS) signed between BP Tapera and the participating banks ²

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Flexibility in Target Achievement

BP Tapera Commissioner Heru Pudyo Nugroho revealed that the target could potentially be increased. The government has allocated investment financing reserves to accommodate any surge in demand, potentially boosting the target to 350,000 units in 2026. This flexibility demonstrates the government's proactive approach to meeting housing needs ¹

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