April 22, 2025 | 12:38 pm
TEMPO.CO, Jakarta - Deputy Minister of Housing and Settlement Area Fahri Hamzah revealed that several donor agencies have expressed readiness to support the renovation of uninhabitable homes across Indonesia.
These agencies include the World Bank, Asian Development Bank (ADB), Asian Infrastructure Investment Bank (AIIB), Islamic Development Bank (IDB), and German Infrastructure Development (GID).
Fahri noted that these institutions aim to implement renovations based on quality and environmentally friendly standards.
"Even the World Bank said they can provide a minimum of US$1 billion per year. That means approximately at least Rp16 trillion," Fahri told reporters during the post-Eid gathering event organized by the All-Indonesia Housing and Settlement Developers Association (Apersi) in Central Jakarta, Monday, April 21, 2025. He remains optimistic that the World Bank’s involvement will encourage other donor agencies to follow suit.
The initiative to renovate uninhabitable homes is a part of the Ministry of Housing and Settlement's broader 3 Million Houses Program.
However, the current budget allocated for the Self-Help Housing Stimulant Assistance (BSBS) program stands at only Rp900 billion, which is far below what’s needed. As such, the government is actively seeking external financial support.
"The renovation budget is only Rp900 billion, compared to the FLPP (Housing Financing Liquidity Facility) interest of Rp28.8 trillion," Fahri pointed out.
He emphasized that a significantly larger budget is essential not only for addressing slum areas but also for improving the aesthetic and environmental quality of coastal and riverside regions. "The budget should be increased there," he said.
To help bridge the funding gap, the Ministry of of Housing and Settlement has engaged with private sector players who are willing to support the renovation efforts.
Among them is Agung Sedayu Group’s Sugianto Kusuma, also known as Aguan, who has been contributing through the Buddha Tzu Chi Foundation.
Through this initiative, Aguan has already renovated 500 homes in Jakarta, with a similar number slated for West Java, Central Java, and Banten.
"This is around Rp30 million to Rp50 million," Aguan said, explaining the estimated renovation cost per housing unit to reporters after visiting homes in Kampung Rawa, Johar Baru, on Tuesday, April 15, 2025.
The Indonesian Chamber of Commerce and Industry (Kadin) is also lending its support to the program and has committed to renovating 500 homes across the country in line with President Prabowo Subianto’s 3 Million Houses Program.
In Kampung Rawa, Johar Baru, Kadin has already completed renovations on three units.
Regarding acknowledgments for participating entrepreneurs, Minister of Housing and Settlement Area Maruarar Sirait, popularly known as Ara, said that the government’s response is simply heartfelt gratitude.
"The feedback, I appreciate it. Thank you, Mr. Anin," Ara said while shaking hands with the Chairperson of Kadin, Anindya Bakrie. He then proceeded to shake hands with Aguan as well.
"Applause for Mr. Anin, applause for Mr. Aguan," said the Gerindra Party politician.
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