Jakarta. The government is planning to set a bigger quota for the affordable housing financing program in 2025, according to Public Works Minister Basuki Hadimuljono.

Indonesia has what it calls the Home Ownership Liquidity Assistance (FLPP) program. This scheme allows low-income individuals to access affordable homeownership at a low interest rate. Basuki said that the FLPP scheme would continue to be in place in 2025 -- the first year for President-Elect Prabowo Subianto. The government will also adjust the quota to meet Prabowo’s program of building 3 million homes.

“I don’t remember the number for [the FLPP quota in 2025], but the quota is bigger [than the previous year] because Mr. Prabowo wants to build 3 million homes. So we make sure that [the FLPP program] helps him meet that target,” Basuki told the press in Jakarta, not long ago, as reported by the state news agency Antara.

In 2024, the allocated FLPP quota for 2024 stands at 166,000 homes -- all of which have run out. Basuki said his team had already been in talks with the Finance Ministry to add more quota.

The government has set aside around Rp 13.72 trillion ($877 million) to fund this year’s FLPP program. The said budget is enough to finance 166,000 homes. The Public Works Ministry has dedicated Rp 680 billion to subsidize the down payment of 166,000 homes. It has allotted Rp 830 billion in the Public Housing Savings Fund (Tapera)  budget for 7,251 homes.

In 2023, the government distributed Rp 26.3 trillion of FLPP funds for 229,000 units. Prabowo has vowed to build 3 million homes, 1 million of which will lie in Indonesian rural areas and another 1 million will be in urban areas. Prabowo will build the remaining 1 million homes in the coastal area.

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