Jakarta. The government’s plan to shrink the size of subsidized landed houses has drawn sharp criticism from urban planners, lawmakers, and civil society, with opponents warning that the policy risks undermining citizens' dignity and violating housing regulations.

Under a draft decree from the Housing and Settlement Ministry (PKP), new subsidized houses would be just 18 square meters in size --smaller than a typical hotel room--, built on land of 25 square meters, down from the current 21 and 60 square meters, respectively.

Yanuar Arif Wibowo, a member of House Commission V, said during an Investor Daily forum that the plan violates the 2011 Housing Law, which sets the minimum size of subsidized homes at 36 square meters. “We are not Hong Kong. We still have land. Don’t reduce housing to permanent cages,” he said on Tuesday.

Hong Kong has long been known for its notoriously cramped “nano flats” and subdivided apartments, typically under 24 square meters with some as small as 12 square meters, driven by severe land scarcity and astronomical property prices.

Yanuar warned that using public housing subsidies like FLPP (Housing Financing Liquidity Facility) for homes smaller than legal limits could constitute a breach of law and constitutional intent. “If you want to build 18-square-meter units, do it for commercial projects, not with public funds,” he added.

Public policy expert Trubus Rahadiansyah of Trisakti University said the plan is misguided and called for a minimum of 36 square meters for any subsidized landed home. “Even 21 square meters is already too cramped. Reducing it further is inhumane,” Trubus told Beritasatu.com on Monday.

He argued that downsizing does little to solve the housing backlog, currently estimated at 15 million units, and suggested the government focus instead on developing vertical housing like apartments. “For units below 21 square meters, it's better to go vertical. Land is limited, but dignity shouldn't be,” he added.

The Indonesian Institute of Architects (IAI) joined the opposition, with chairman Georgius Budi Yulianto warning that ultra-small homes risk stripping away human dignity. “Eighteen square meters is half the size of a garage. Where do you cry in peace, or let your child play, or simply breathe?” he said in an emotional critique.

Architecture, Georgius argued, should be about creating space for growth and protection, not reducing life to mere survival. “We’re not talking luxury. We’re talking about the right to live decently,” he said.

Property analyst Anton Sitorus echoed that view, stressing that housing subsidies should enhance quality of life, not reduce it to cramped living. Quoting social media criticism, he joked, “If it's too small, it's not subsidized housing; it’s 'subsi-die’ housing.”

Despite the backlash, the Housing Ministry defended the plan, saying the smaller units are meant as an alternative for Gen Z workers and young professionals who prioritize location over space.

“We’re responding to a segment that wants affordable housing near their offices,” said Sri Haryati, the ministry’s director general for urban housing. She added that the proposal is still under review and open for input from stakeholders.

The ministry has circulated the draft decree to developers and associations including REI, Kadin, and HIPMI. The micro-housing option, it says, would be limited to dense urban areas, while rural housing would follow current standards.

Still, with a target of building three million homes by 2026, critics warn that the government’s “race against time” must not come at the expense of livability.

“This isn’t just about hitting numbers,” Yanuar said. “It’s about ensuring every Indonesian can call their home a place of dignity and hope.”