BUMN Will Build KAI’s Unused Land as Millennial Generation Residential

BUMN Will Build KAI's Unused Land as Millennial Generation Residential (photo: ANTARA FOTO/Syifa Yulinnas)

The difficulty of owning a home for the millennial generation has made State-Owned Enterprises (BUMN) plan to utilize the unused land belonging to the Indonesian Railways (KAI) as vertical housing such as apartments.

The Minister of State-Owned Enterprises (BUMN), Erick Thohir, said that there are still many millennial generation who have difficulty having decent and affordable houses. This is because house and land prices are currently quite high.

“Therefore, we are trying to make a breakthrough. We mapped out the unemployed PT KAI land and built apartments, some are subsidized and some are non-subsidized,” said Erick, quoted on Tuesday (3/1/2023).

Erick said, currently there are 14,000 – 16,000 units that have been built by his staff. This year, the TOD residential development project will collaborate between PT Bank Tabungan Negara (BTN) and Perumnas.

“There are already 14,000 – 16,000 units, we have even launched a Rent To Own [home ownership scheme] if the track record is good. And this is now connected with the improvement of the National Housing model business this year. The land is from PT KAI and built with BTN, please,” said Erick.

This plan was previously carried out in 2017 when PT KAI (Persero) together with Perum Perumnas built a flat with a Transit Oriented Development (TOD) concept worth IDR 705 billion in Tanjung Barat, South Jakarta.

Furthermore, Erick said the TOD residence would be facilitated by public services with the concept of sharing or sharing with other residents. For subsidized and non-subsidized housing, of course, there will be differences in terms of material used.

However, he stressed that the quality of the buildings would be similar to non-subsidized housing.

“If those who are subsidized use industrial rooms [for example] but it’s cool, it’s an option, but yes the quality is the same,” he said.

For information, RTO is a housing loan (KPR) product initiated by PT Bank Tabungan Negara (Persero) Tbk. (BBTN), where KPR RTO users can rent housing for a period of 3 years before buying with a KPR.

This RTO KPR is also Bank BTN’s strategy to approach the millennial generation or generation Z. Because, in the current conditions, they see that this generation prefers to rent or rent houses because they are not ready for a down payment (DP).