House Ownership Loans Realization Reached 53.2 Percent

property sector
property sector

People’s interest in buying a house is getting higher. The Ministry of Public Works and Public Housing (PUPR) reported that the Housing Financing Liquidity Facility (FLPP) as of July 28, 2022, had reached 106,346 housing units, or 53.2 percent of this year’s target of 200,000 housing units.

Director General of Public Works and Housing Infrastructure Financing Herry Trisaputra Zuna said the FLPP KPR program was carried out to overcome the housing shortage (backlog) and encourage low-income people (MBR) to have decent houses.

This is following the 2020-2024 National Medium Term Development Plan (RPJMN) target. The government targets to increase access to decent housing from 56.75 percent to 70 percent or the equivalent of 11 million households.

To meet this target, in FY 2022 the Ministry of PUPR allocated FLPP funds of Rp. 23 trillion and BP2PT of Rp. 888.46 billion.

Not only FLPP, but the government also runs the Savings-Based Housing Financing Assistance (BP2BT), Subsidy for Advance Payments (SBUM), and Tapera Financing.

Meanwhile, the realization of the BP2BT program has now reached 3,024 units or 13.4 percent of the target of 22,568 housing units.

“With the enthusiasm of the stakeholders to provide houses for the community, we are very optimistic that this target can be achieved,” said Herry in his official statement, Monday (1/8/2022).

To overcome the problem of land availability, Herry said that the government is currently working on providing housing in big cities and metropolitan areas through a vertical housing scheme.

According to him, to help MBR have a home, a financing scheme with a creative mechanism is needed. Some of them are lease-purchase schemes, staircase ownership financing, PPPs, and optimizing FLPP funds.

Not only that, considering the property sector which is one of the main sectors in the national economic recovery (PEN), the government has recently issued a relaxation policy in the form of incentives for Government Borne Value Added Tax (PPN DTP) until September 2022.

“The 2022 DTP VAT incentive policy is given at 50 percent of the 2021 DTP VAT incentive, which is 50 percent for house sales of a maximum of IDR 2 billion and 25 percent for house sales with prices above IDR 2-5 billion,” he explained.

Furthermore, the Minister of PUPR Basuki Hadimuljono also encouraged the strategic plan to be achieved according to the target, especially for MBR to get decent housing.

“The government is committed to providing decent housing for low-income people (MBR). We hope that we can improve the quality of life of the beneficiaries by having a more decent, healthy, and comfortable house,” said Basuki.