A Number of Constraints to the Million Houses Program

By : Herry Barus And Aldi Firhand. A | Wednesday, December 06 2017 - 10:16 IWST

Residence Illustration
Residence Illustration

INDUSTRY.co.id - Jakarta - The government through the Ministry of Public Works and People's Housing (PUPR) admits that the target of building a million houses per year is not achieved due to a number of obstacles.

"Yes, the target of a million new homes per year, until yesterday (4/12) was unrealized, only 765,120 units with 70 percent MBR and 30 percent non-MBR composition," Khalawi Abdul Hamid, director general of housing division of the Ministry of Public Works, Jakarta, Tuesday (5/12/2017)

According to Khalawi, the program of a million homes has been initiated since 2015 to reduce the number of home shortage needs (backlog) of 7.6 million with a growth deficiency of 800 thousand per year.

"In 2015 reached 699,770 units of houses and 2016 of 805,169 units of houses," he said.

From that realization, the composition is about 70 percent for low-income people (MBR) and the remaining non-MBR.

Khalawi also acknowledged, the common obstacles that are still faced in the procurement of the house is the regulation and land.

Therefore, he added, in the future should be pursued a number of breakthroughs to support the program of a million homes.

"Supervision to the region is directly required so that the inputs are improved not only from REI (Realestat Indonesia)," Khalawi said.

The Directorate General of Housing Provision in 2017 obtained a budget of Rp8.1 trillion for the physical procurement of houses of 128,336 units and construction of infrastructure and facilities and utilities (PSU) of 14 thousand units.

Of that amount, the realization of budget absorption until 4 December amounted to 76.09 percent and physical 86.57 percent.

While in 2018, the budget proposed to Rp9, 6 trillion with target distribution of housing unit construction is in western Indonesia 51.7 percent and east 48.3 percent.

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