Han Revanda Putra, Jakarta – President-elect Prabowo Subianto announced plans to separate the Ministry of Public Works and Public Housing (PUPR) into two distinct ministries: one dedicated to housing and another focused on infrastructure development.
This decision was revealed by Hashim Djojohadikusumo, the Head of Prabowo's Housing Task Force, during the APEC Business Advisory Council meeting held at Hutan Kota by Plataran in Gelora Bung Karno, Senayan, Jakarta, on Saturday, August 31, 2024.
"The PUPR Ministry will be restructured as the PU Ministry, primarily responsible for infrastructure matters. The newly formed Ministry of Housing will exclusively address housing-related issues. This reflects President-elect Prabowo's unwavering commitment to advancing development in Indonesia," said Prabowo's younger brother.
Hashim confirmed that he was appointed as Head of the Housing Task Force under the Prabowo-Gibran transition team four months ago. He has been actively engaging with various institutions, including Bank Tabungan Negara (BTN), the Board of Directors of the National Housing Development Company (Perumnas), and PT Sarana Multigriya Finansial (SMF), to discuss strategies for achieving the ministry's ambitious housing targets.
The Housing Ministry has set a goal of constructing 3 million homes annually, with 2 million units earmarked for rural areas and 1 million apartments for urban centers. Hashim emphasized that the development of 2 million housing units in rural areas will be entrusted to micro, small, and medium enterprises (MSMEs), cooperatives, and Village-Owned Enterprises (BUMDes).
"Conglomerate contractor companies will not be allowed to participate in this sector," he declared at the APEC Business Advisory Council Indonesia meeting.
According to him, this approach aims to stimulate the growth of MSMEs in regional economies and foster the emergence of a new middle class. He acknowledged that Indonesia's middle class has declined by 9 million people and expressed the Prabowo government's aspiration to revitalize and expand this demographic.
In addition to the rural housing initiative, the government plans to build 1 million apartments in urban areas each year. These projects will involve collaborations with local governments, as exemplified by the proposed partnership with Jakarta-owned market operator Pasar Jaya.
Hasyim further disclosed that the Draft State Budget (RAPBN) has allocated an initial fund of Rp53 trillion to support these housing development efforts.