Attention! Subsidized Housing Prices Will Increase Up to 5%

subsidized house

Subsidized housing prices will soon increase by up to 5%. This was proposed by the Ministry of Public Works and Public Housing (PUPR) at the end of last year. This price increase is scheduled to take effect at the end of this month after the Minister of Finance Regulation is published.

The Director General of Public Works and Housing Infrastructure Financing, Herry Trisaputra Zuna estimates that the new subsidized housing price adjustment rules will be implemented shortly. Currently, the decree is being processed at the Fiscal Policy Agency (BKF) of the Ministry of Finance.

On the other hand, the Secretary General of the Apersi DPP, Daniel Djumali, said that an adjustment in subsidized housing prices of 5 percent was not sufficient. This is because the developer previously proposed an increase in subsidized housing by 7 percent.

However, because the subsidized house price limit has not been adjusted for 3 years, his party will accept it for now.

Even during these 3 years, developers began to be confused by the increase in the price of building materials, and the price of fuel oil (BBM) which triggered an increase in production costs.

In this case, a 5 percent increase is said to be able to help restore the cash flow conditions of subsidized housing developers who are under pressure.

However, if the developer feels they are not compatible with the price adjustments that will be made, then they have no choice but to change the status of subsidized housing to commercial housing so that they can adjust production costs.

Previously, the Central Statistics Agency (BPS) reported an increase in the Wholesale Price Index (IHPB) for the building or construction group by 0.37 percent (month-to-month) in December 2022.

The change in the index occurred from the level of 116.74 in November 2022 to 117.17 in December 2022. All groups of building types experienced an increase compared to December 2021, which was 6.87 percent year-to-date (YTD).

Meanwhile, the residential and non-residential building groups experienced an annual increase of 4.28 percent. Meanwhile, the commodity that experienced price increases from year to year was diesel by 37.80 percent which contributed to wholesale price inflation of 1.83 percent.