Tangerang. The Indonesian government is preparing Rp 50 trillion ($2.8 billion) in credit support for housing construction and home purchases in 2026 as it seeks to tackle a nationwide housing backlog and accelerate President Prabowo Subianto’s 3 Million Homes program.

According to data released by the Central Statistics Agency (BPS) in March, 9.29 million Indonesian households still do not own a home.

Rosan Roeslani, CEO of sovereign wealth fund Danantara Indonesia, said the figure underscores the scale of the country’s housing needs and the urgency of expanding access to adequate homes.

“These figures demonstrate that housing needs are indeed a top priority. We will certainly work alongside the Housing and Settlement Ministry to ensure that the housing program is implemented effectively and swiftly while meeting decent living standards,” Rosan said on the sidelines of the Danantara Housing Expo at Pantai Indah Kapuk 2 in Tangerang.

Beyond home ownership, housing quality remains another major challenge, with around 18 million households still living in homes that fail to meet adequate habitability standards.

Officials have stressed that expanding the housing stock must be accompanied by financing schemes suited to households’ purchasing power.

The government is therefore seeking greater participation from state-owned and private developers as well as banks. Such collaboration is expected to accelerate housing construction while expanding financing options for prospective homeowners.

Speaking at the same event, Housing and Settlement Minister Maruarar Sirait said the government has increased the 2026 quota for subsidized mortgages under the Housing Financing Liquidity Facility (FLPP).

The quota has been raised from 220,000 homes to 350,000, allowing more low-income households to access subsidized housing finance.

Bank Indonesia has also supported the expansion of housing financing by reducing the applicable reserve requirement for banks from 5% to 4%.

Lower reserve requirements reduce the amount of funds banks must keep at the central bank, freeing up additional liquidity that can be channeled into loans and other financing.

According to Maruarar, the measure could generate around Rp 80 trillion in additional liquidity to support housing financing.

The government has also accelerated the distribution of FLPP financing through mass contract signings for subsidized homes. On July 30, contracts for 62,710 homes were signed simultaneously across 36 provinces and 372 regencies and cities.

At the same time, the government disbursed Rp 880 billion in housing-related microloans to 7,100 borrowers. The loans are intended to support businesses involved in the housing sector and its supply chain.

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