Finance Minister Sri Mulyani Indrawati Increases Quota for Housing Financing Liquidity Facility (FLPP)

Finance Minister Sri Mulyani Indrawati Increases Quota for Housing Financing Program

In a move aimed at providing affordable housing for low-income households, Finance Minister Sri Mulyani Indrawati has announced an increase in the quota for the Housing Financing Liquidity Facility (FLPP) program. The quota will be raised by approximately 36,000 units, bringing the total number of subsidized houses under the FLPP program from 166,000 to 200,000 units.

During a press conference following the 2024 fourth-quarter Financial System Stability Committee meeting on Friday, October 18, 2024, at Bank Indonesia’s headquarters, Sri Mulyani stated that the policy is intended to help low-income families secure adequate housing while also stimulating home sales and keeping inflation in check.

“This measure aims to ensure the availability of affordable and livable housing for low-income communities,” she added.

In addition to the increase in the FLPP quota, the government will offer tax relief for home purchases by covering 100% of the Value-Added Tax (VAT) until the end of 2024. Previously, the government only covered 50% of the VAT on housing.

Meanwhile, Prabowo Subianto’s housing task force leader, Hashim Djojohadikusumo, highlighted the dire housing situation in Indonesia, with approximately 27 million houses considered uninhabitable. Prabowo had previously promised an annual construction of three million housing units during his administration, with two million homes in rural areas and one million apartments in urban areas, at an estimated cost of IDR 60 trillion.

The initiatives announced by Sri Mulyani and Prabowo’s ambitious housing program are expected to make homeownership more accessible and improve the living conditions of low-income communities in Indonesia.