Rp 8.9 Trillion Housing Plan Aims to Renovate 400,000 Homes
Jakarta. Housing and Settlements Minister Maruarar Sirait said the 2026 BSPS housing aid program will allocate 19,668 units in North Sumatra, part of a nationwide plan to renovate 400,000 substandard homes with a budget of about Rp 8.9 trillion ($526 million).
The allocation includes 8,825 units in rural areas, 5,525 in coastal regions, and 5,285 in urban areas.
The BSPS program, run by the Housing and Settlements Ministry, provides financial assistance to low-income households to upgrade uninhabitable homes. The aid — up to Rp 20 million ($1,180) per unit — is used to purchase building materials and cover labor costs under a community-based self-help scheme.
As of Oct. 31, 2025, the national program had disbursed Rp 3.5 trillion, representing 73.92% of its 2025 budget, according to MyPKP, a monitoring system for tracking housing development and renovation progress.
The program is one of President Prabowo Subianto’s priorities, with a 2026 budget allocation of Rp 8.9 trillion to renovate 400,000 substandard homes.
“Every state budget used in this program must be utilized properly and in accordance with its intended purpose,” Maruarar said during a visit to Toba Regency on Tuesday.
Maruarar, popularly known as Ara, said 46 housing units in Toba have been proposed as BSPS beneficiaries, including 20 units in Balige, 14 in Porsea, and 12 in Bonatua Lunasi.
He said field verification is crucial to ensure the assistance reaches eligible beneficiaries. During the visit, the minister also inspected housing conditions and met with residents.
“This step is taken to ensure the BSPS program truly reaches those in need,” he said.
The ministry has also introduced an open vendor selection mechanism to strengthen transparency and accountability in program implementation.
The BSPS rollout in North Sumatra is scheduled to begin in the second week of April 2026, aiming to improve housing quality for low-income communities and make homes more livable, healthy, and safe.
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