Jakarta. Qatari company Al Qilaa, through its Indonesian unit Al Qilaa International Indonesia, plans to build 50,000 affordable apartment units in Indonesia as part of the first phase of a large-scale housing investment project, with construction expected to begin after licensing and land preparation are completed.

“This is our first project in Indonesia,” said Sheikh Abdulaziz Al Thani, Chairman of Al Qilaa, during a press briefing at the Ritz-Carlton Hotel in Jakarta on Thursday. “I hope we succeed very strongly in this project with the help of the government of Indonesia.”

The initiative is part of a broader Indonesia-Qatar housing cooperation that envisions a total of one million vertical housing units. The first phase of the project alone is expected to cost around $2.5 billion, or approximately Rp 40.75 trillion, based on a currency exchange rate of Rp 16,300 per US dollar.

“This is not a small project, it’s worth $2.5 billion,” said Sheikh Abdulaziz. “We are now finalizing the initial phase and coordinating with the government. It will take some time, but we hope to complete everything within two years.”

The development will take place in two stages, with 50,000 units planned for each phase. "We are approximately, plus-minus, looking at 50,000 units in this first phase. And quickly after that, we will move to phase two with another 50,000,” he said.

While details on pricing have not yet been disclosed, Sheikh Abdulaziz said the apartments will be offered at accessible prices and will come with community-centered amenities. “We are not just building towers or houses. We are building a community,” he said. “They will find swimming pools, schools, nurseries, playing areas, everything inside this place.”

The project’s primary aim, he said, is not profitability but impact. “It’s not my first priority to make a profit, but it’s going to be profitable. We are working very strongly with our partners to get a good construction price,” he said. “What matters more to me is being on the ground and delivering this project.”

Although pricing specifics remain under wraps, Sheikh Abdulaziz said announcements will be made within the next one to two months as the company is finalizing agreements with two to three marketing firms and state-owned Bank BTN, which is expected to be involved in financing and unit absorption.

He also underlined his interest in Indonesia’s housing market, citing strong demand and under-addressed affordability. “There is a demand from the people, and I haven’t seen anyone yet deliver a project with a good price and full facilities,” he said.

Sheikh Abdulaziz stressed that his involvement is as a private businessman, not as a representative of the Qatari government. “I’m here on behalf of my company, not on behalf of Qatar, but I am a Qatari company,” he said. “My group is working all over the world, and now, for the first time, we are here in Indonesia.”

He closed by reaffirming his long-term commitment to the project. “If there’s more support from the government, we will continue this project to cover more of the housing demand,” he said.

This ambitious project arrives amid Indonesia’s severe housing shortage. The country’s housing backlog has surged to approximately 15 million units. The government is targeting three million new housing units per year to tackle this deficit. However, local capacity currently sits at around 500,000 units annually, far below the required rate.