Dandi Bajuddin – Deputy Minister of Housing and Settlements Fahri Hamzah stated that Indonesia is currently facing a significant housing backlog. He noted that out of the 9.8 million families who do not own their own homes, 6 million reside in dwellings that are structurally and sanitarily unsuitable.
"If we calculate with an average of 3.2 persons per family, then more than 50 million people in Indonesia live without their own homes," Fahri said at the Real Estate Indonesia DKI Jakarta event at Hotel JS Luwansa, South Jakarta, on Thursday, August 7, 2025.
Fahri mentioned that one of the reasons for the low absorption of houses by the community is an unsynchronized data system, inadequate development approaches, and the weak role of the state in bridging the gap between housing needs and availability.
As a concrete step to address these issues, Fahri said the government has allocated a budget of up to Rp47 trillion to improve uninhabitable houses in rural areas, revitalize slum areas, including coastal regions, and construct vertical housing in urban areas.
In addition, the government has set an ambitious target to build one million units of vertical housing per year as part of the National Strategic Project (PSN). This program will be supported by the Land Bank and State-Owned Enterprises for land procurement, as well as by streamlining bureaucratic processes for more efficient implementation.
The Gelora Party politician invited all stakeholders, including the private sector, local governments, and the community, to collaborate and ensure the success of this grand agenda. "We are building the future. Not just houses, but also the dignity and hope of millions of citizens," he emphasized.
When asked about the 3 million house program, Fahri insisted on remaining optimistic about realizing one of President Prabowo's campaign promises. "This is a promise from the President to the people that is ethically and constitutionally binding and cannot be withdrawn. We all must maintain the spirit that this grand project is real, being prepared, and will be executed," said Fahri.
Previously, Minister of Housing and Settlements Maruarar Sirait acknowledged that the Ministry's 2025 budget of only Rp3.46 trillion posed its own challenges. However, unlike Fahri Hamzah, Maruarar Sirait is confident that the 3 million house program can still be achieved.
The 3 million house program is an initiative by President Prabowo Subianto. Prabowo targets the construction of 2 million houses in rural areas and 1 million houses in urban areas. To realize this program, Prabowo formed the Housing and Settlements Ministry and appointed Maruarar Sirait as its leader.
In the previous government era under President Jokowi, housing affairs were managed under the Ministry of Public Works and Housing (PUPR).
Source: https://en.tempo.co/read/2037484/indonesias-housing-backlog-over-50-million-people-do-not-own-home