Affordable Housing Initiative: Indonesia to Utilize Land Seized from Corrupt Officials

JAKARTA, RAKYAT NEWS – Indonesia’s Minister of Public Housing and Residential Areas, Maruarar Sirait, announced plans to utilize state-seized land for the construction of affordable housing, aiming to build three million units by 2025.

In a recent meeting with Attorney General ST Burhanuddin, it was confirmed that approximately 1,000 hectares of seized land will be available for this initiative.

“The Attorney General is ready to hand over the land. I have discussed this with Finance Minister Sri Mulyani, and we will meet to ensure that this land, seized from corrupt individuals, benefits the lower-income population,” he stated.

The ministry is currently calculating compensation for the use of this land and is seeking approval from relevant government ministers to move forward.

The strategy of utilizing seized land is expected to significantly lower housing development costs by up to 40%, contributing to the national budget for the three million housing program.

He emphasized the need for swift approval from the cabinet, particularly from Finance Minister Sri Mulyani, whom he described as a seasoned bureaucrat likely to carefully evaluate the proposal.

To achieve the housing target, the ministry is also focusing on budget efficiency, aiming to reduce housing prices and make them more accessible. He highlighted potential partnerships with material manufacturers, such as cement producers, to secure discounts that could lower selling prices.

In addition to new housing projects, Sirait is advocating for a reduction in rental prices for apartments in the Pasar Rumput area of South Jakarta. Despite the availability of 1,984 units, only 400 are currently occupied, and the existing monthly rent of Rp 3.5 million is deemed too high for low-income families.

He proposed a new rent of Rp 1.25 million per month, ensuring sustainability for the management while also benefiting low-income tenants, including military personnel and civil servants.

He called for cross-subsidization to support housing for workers commuting from areas like Thamrin and Sudirman, to alleviate traffic congestion and improve living conditions.

This initiative marks a significant step toward addressing Indonesia’s housing crisis and ensuring that affordable housing is within reach for all citizens. (Uki Ruknuddin)