The Subsidized Housing Price Will Increase by 10 percent

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The raw materials price increase for housing construction causes the government to consider increasing the subsidized housing price. However, for now, the Ministry of Public Works and Public Housing is still holding back on subsidized housing prices, which have not experienced an increase in prices for the last three years.

Based on the Decree of the Minister of PUPR Number 242/KPTS/M/2020, until the first quarter of 2022, subsidized houses in the Greater Jakarta area are still priced at Rp. 168 million.

For the record, the price of home construction raw materials in the global market is increasing. On Friday, (22/04/2022), aluminum prices rose 40.6 percent year on year. Then, the price of steel rose 0.43 percent YoY and the price of copper as a raw material for power cables rose 11.6 percent YoY.

Seeing the increase in the price of raw materials, the Chairman of the DPD REI DKI Jakarta Arvin Fibrianto Iskandar hopes that the subsidized housing price will be adjusted.

“Currently, the price of building materials or housing materials tends to move up, due to the Covid-19 pandemic and the Russo-Ukrainian war. Therefore, it is necessary to adjust the price,” said Arvin on the sidelines of the ceremonial giving of compensation and breaking the fast with representatives of the Orphans and Dhuafa in Jakarta, Thursday (21/04/2022).

Arvin suggested that the price of subsidized housing for low-income people (MBR) could increase by 10 to 20 percent this year.

“We recommend that the price of subsidized houses be increased slightly, by about 10-20 percent this year,” said Arvin.

According to him, the proposed 10-20 percent increase is a moderate figure because based on calculations, the increase in property prices caused by inflation in the construction sector could reach 20 percent.

“The price adjustment is a moderate figure, taking into account inflation in the construction sector,” concluded Arvin.