Sumber : Istimewa
FREE Houses. Free Houses. This has been the message the government promoted since launching the Three Million Houses program. Unfortunately, behind the promise of o£ering free homes to the public, this new initiative has shocked many property developers, as numerous buyers have canceled their house orders and in some cases, are unable to retrieve already paid down payments, hoping instead to receive a free house.
In early November 2024, Minister for Public Housing and Residential Areas (PUPR), Maruarar Sirait, alongside Agung Sedayu Group (ASG) founder Sugianto Kusuma (popularly known as Aguan), launched the “Three Million Houses” program. This ambitious project, covering an area of 2.5 hectares, has been supported by donations from PT Bumi Samboro Sukses, which was given to ASG for construction.
The public received this initiative with mixed feelings. On one hand, it was perceived as a generous philanthropic e£ort, with three million homes being built for citizens in need, partly funded by donated land.
Over the past ten years of President Jokowi’s administration, less than 10 million housing units were built, and the e£ort to meet the “One Million Houses” goal alone required signi¨cant ¨nancial subsidies.
According to data from the Ministry of Public Housing and Residential Areas, since the start of the “One Million Houses” program in 2015, a total of 9,206,379 housing units were built by 2023. By July 2024, 617,622 units had been completed, representing 59.23% of the national target for that year. This includes 484,119 units for low income households (MBR) and 133,503 units for non-MBR groups across Indonesia.
The new Three Million Houses program sets a goal three times larger than the previous target, an ambitious undertaking. Nevertheless, Maruarar, who is leading the project, remains determined to press forward. He continues to work with various stakeholders, including the Attorney General’s O¡ce, to address land con¨scated from corrupt individuals and from BLBI debtors.
While this initiative is commendable, there may be unforeseen consequences. Maruarar may not realize that the search for vacant land to support the Three Million Houses program could send the wrong message to potential buyers. According to Joko Suranto, Chairman of the Indonesian Real Estate Developers Association (DPP REI), many buyers are canceling their home purchases, hoping instead to receive a free house from the government.
This shift in consumer behavior could severely impact the property industry, as developers struggle with declining sales. The situation bears similarities to the period during the COVID«19 pandemic when the government introduced VAT incentives for vehicles under 1,500 cc, causing many consumers to delay their purchases.
From a banking perspective, it’s crucial to remember that loans involve public funds. There have even been proposals, spurred by Maruarar’s enthusiasm, to rename Bank Tabungan Negara (BTN) to BPR (Bank Perumahan Rakyat). This suggestion demonstrates a lack of understanding of housing concepts and BTN’s long established reputation. Renaming the bank could harm its brand, and this idea should be reconsidered.
Land availability is a key factor, but other aspects, such as purchasing power and necessary infrastructure, roads, permits, electricity, must also be addressed early in the process. After all, owning a home is not just about the property itself. Many subsidized homes built on the outskirts of cities have become abandoned and unused, wasting valuable resources.
Another challenge is the decline in purchasing power due to widespread layo£s and di¡culty ¨nding new employment. The recent VAT increase from 11% to 12% will likely lead to higher in®ation, further reducing purchasing power. This 1% VAT increase actually raises costs by 9.09%, driving up the price of construction materials and housing, which in turn raises home prices. Thus, while purchasing power decreases, home prices are set to rise.
The “free homes” narrative should be abandoned. Policies should focus on making home buying and construction easier for the public, without bureaucratic delays or interference from unscrupulous individuals. Creating housing policies is not just about distributing homes.
While it’s true that some free homes do exist, they account for less than 2.5% of the 15 million homes to be built over the next ¨ve years. For example, a free home initiative by Aguan in Tangerang only provided 250 homes. Even land seized by the Attorney General’s O¡ce in Banten, covering 1,000 hectares, is expected to yield no more than 30,000 homes.
The intention behind distributing free homes is noble, but the way this message is framed negatively impacts home sales. It’s important to rethink how we communicate about the government’s generosity with free homes. After all, the funds involved are not a windfall nor inheritance from prophet Solomon’s, but it is the public’s money, and it must be managed responsibly.
In early November 2024, Minister for Public Housing and Residential Areas (PUPR), Maruarar Sirait, alongside Agung Sedayu Group (ASG) founder Sugianto Kusuma (popularly known as Aguan), launched the “Three Million Houses” program. This ambitious project, covering an area of 2.5 hectares, has been supported by donations from PT Bumi Samboro Sukses, which was given to ASG for construction.
