Jakarta. The Housing Ministry has requested an additional Rp 96.09 trillion ($5.4 billion) in funding for 2027 to accelerate President Prabowo Subianto’s flagship Three Million Homes Program, as the government pushes to reduce a housing backlog affecting an estimated 9.9 million to 11 million families.

Housing and Settlement Areas Minister Maruarar Sirait told lawmakers on Wednesday that the ministry’s budget ceiling of Rp 9.91 trillion for 2027 is insufficient to meet the government’s housing targets, prompting a request for total funding of around Rp 106 trillion.

The Three Million Homes Program is a cornerstone of Prabowo’s housing agenda, aimed at addressing Indonesia’s chronic housing shortage. The initiative seeks to build three million homes annually, including two million landed houses in rural and coastal areas and one million vertical housing units in urban centers, with a particular focus on low-income households and informal sector workers.

Data from the Central Statistics Agency (BPS) shows homeownership backlog remains substantial, with between 9.9 million and 11 million families still lacking a home of their own. BPS estimates that roughly 13% of the population continues to live in rented accommodation or with relatives, underscoring the scale of unmet housing demand.

“The indicative budget requires an additional Rp 96.09 trillion to achieve the target,” Maruarar said during a hearing with the House of Representatives’ Commission V.

The largest portion of the proposed budget, Rp 57.29 trillion, would go to the government’s home renovation program to build or upgrade more than 2 million homes. Another Rp 36.94 trillion would fund the construction of 50,000 apartment units across 421 residential towers, while Rp 8 trillion would be used to build 23,410 homes for disaster victims.

The funding request comes as the government reports steady progress in the program. As of June 13, a total of 324,213 housing units had been built or renovated nationwide under the Three Million Homes initiative.

According to Government Communications Agency (Bakom) chief Muhammad Qodari, private developers accounted for the largest contribution with 181,291 units, followed by self-help housing projects with 83,210 units, government-funded projects with 55,655 units, and community-based initiatives with 4,057 units.

Beyond its social objectives, the government sees the program as a key economic stimulus, supporting construction activity, building material industries, job creation, and investment in the housing sector.

To supplement state funding, officials are exploring alternative financing mechanisms, including corporate social responsibility (CSR) funds, the optimization of Bank Indonesia’s reserve requirement policy, and the development of a housing-focused microcredit scheme.

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