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Indonesia, China Explore Affordable Housing Partnership to Tackle 9.6 Million Home Backlog

Prisma Ardianto
July 30, 2026 | 5:02 pm
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An aerial view shows the construction of subsidized housing in Batang Regency, Central Java, on July 23, 2026. (Antara Photo/Harviyan Perdana/nz Putra)
An aerial view shows the construction of subsidized housing in Batang Regency, Central Java, on July 23, 2026. (Antara Photo/Harviyan Perdana/nz Putra)

Jakarta. Indonesia and China are exploring a strategic partnership in affordable housing, focusing on technology transfer, financing, and land development to help address Indonesia's 9.6 million-home ownership backlog and expand access to housing for low- and middle-income families.

The initiative was discussed during a bilateral meeting between Housing and Settlements Minister Maruarar Sirait and China's Minister of Housing and Urban-Rural Development Ni Hong in Jakarta on Wednesday.

Maruarar said both countries exchanged experiences on housing policies, including efforts to reduce the number of households without homes and improve substandard housing.

"We shared our respective experiences, both in Indonesia and China, on managing the housing sector, addressing the homeownership backlog for people who do not yet own a house, and improving housing conditions for those who already own homes that are no longer fit for living," Maruarar said.

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Indonesia's homeownership backlog remains a major challenge, with the 2025 National Socioeconomic Survey (Susenas) recording a nationwide deficit of 9.6 million housing units.

Beyond sharing policy experience, the two countries discussed potential cooperation on land provision, housing finance, and the application of technology in residential development. They agreed to follow up the talks by prioritizing housing projects for low- and middle-income households.

"We also exchanged views on land, financing, and technology. We agreed to follow up by focusing on housing for low- and middle-income communities," Maruarar said.

The nearly three-hour discussion also covered strategic housing programs in both countries, including more efficient urban land use and environmentally sustainable subsidized housing.

"For subsidized housing, each home should be accompanied by one tree as part of a greening initiative," he said.

Ni Hong described the discussions as open and constructive, saying housing cooperation could become a new pillar in bilateral relations.

"Under the guidance of both governments, we are ready to create a new area of cooperation in housing. Indonesia is one of China's key trading partners, and we hope cooperation in the housing sector can reach a higher level," Ni Hong said.

He added that the Chinese government would encourage companies from China to participate in housing development projects in Indonesia to support the construction of quality homes.

While acknowledging that each country faces different housing challenges, Ni Hong said their experiences could complement one another.

"Conditions vary from one country to another, so the challenges are different. But we are willing to learn from each other and seek solutions together," he said.

"I believe this meeting will further deepen the friendship between our two countries and create greater momentum for future cooperation," he added.

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