In an effort to combat the housing needs for Indonesia's growing population, President Joko Widodo launched the One Million Houses Program in 2015.

The Ministry of Public Works and Public Housing is optimistic that the goal may be reached in 2018 given that already 582, 638 units have already been constructed. 

Since the program's launch in 2015, the number of houses constructed each year has slowly increased.

In 2015, just under 700,000 homes were built, increasing to approximately 800,000 in 2016 and around 904,000 by end-2017. The target for this year is estimated at close to 1.1 million.

Source: Ministry of Public Works and Housing, Indonesia

Known locally as PSR, the million homes program earmarks 70% of completed homes for low-income households (MBR) with the remaining 30% offered to those with higher incomes (non-MBR).

The One Million Houses Program is a joint movement by all housing stakeholders including, the Central Government, housing developers, banks, private companies and the public that collectively aims to overcome the housing backlog in Indonesia.

To increase the supply of livable houses, especially those that are affordable for MBR, there are four challenges faced, namely:

1. The level of affordability for MBR is still low, in terms of buying a house from a developer, building independently or improving the quality of homes that are unfit for habitation.
2. The availability of funds in which housing financing schemes for MBR is limited.
3. MBR access to housing finance sources (financial institutions) to obtain housing loans (KPR) is still limited and the latter is still short-term so that they cannot be sustainable for long-term mortgages.

And while MBR does have purchasing power, their ability to access this is difficult, hence the government's initiative to facilitate subsidised housing solutions. 

Sources: RETalk Asia, Gapura Bali, Netral News

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