JAKARTA, thekabarnews.com—The Indonesian government has raised its 2026 home-renovation target to 400,000 units while expanding subsidized mortgages and creating new demand for locally produced building materials, Housing and Settlement Minister Maruarar Sirait said.

Maruarar announced the measures after meeting President Prabowo Subianto at the Presidential Office in Jakarta on Monday, Oct. 26. The policies form part of the government’s effort to improve access to adequate housing and support small businesses within the construction supply chain.

“This is part of a state program introduced by President Prabowo. Last year, we had 45,000 home renovations. This year, the number has increased significantly to 400,000 homes,” Maruarar said.

The renovation initiative, commonly implemented through the Self-Help Housing Assistance program, provides support for low-income households living in substandard homes. The government has allocated the 2026 program to districts and cities across Indonesia, according to the State Secretariat.

However, the 400,000 figure represents the annual target rather than completed renovations. Housing Ministry data showed that workers had completed 23,741 units by September, while they continued building more than 118,000 others.

Officials have been working with regional governments to accelerate implementation and resolve administrative obstacles.

The government is also expanding homeownership through the Housing Financing Liquidity Facility (FLPP), which provides subsidized mortgages for eligible low-income buyers.

As of Oct. 9, BP Tapera had financed 177,161 homes under the program, equivalent to 50.62 percent of the 2026 target of 350,000 units, according to the Housing Ministry. The government has maintained the FLPP interest rate at 5 percent to keep monthly payments affordable.

Meanwhile, Prabowo’s administration is connecting public housing expenditure with regional micro, small and medium enterprises. In Majalengka, West Java, 34 clay-roof-tile producers have secured Indonesian National Standard certification and are preparing 2.4 million tiles for distribution.

“Seven months ago, not a single producer in Majalengka had SNI certification. Now, 34 have qualified,” Maruarar said. The shipment, scheduled for Nov. 8, is expected to involve about 600 trucks.

The government is also preparing its ASRI program—an Indonesian acronym referring to safe, healthy, clean and attractive neighborhoods. The initiative aims to improve residential areas while engaging local companies to supply materials and services.

Separately, Maruarar responded to a protest by GRIB Jaya chairman Hercules Rosario de Marshal concerning disputed land in Tanah Abang, Central Jakarta. The minister said government agencies had identified the parcel as an asset registered to state railway operator PT KAI.

“I checked with the National Land Agency, the President Director of KAI and the head of the State-Owned Enterprises Regulatory Agency. According to them, the land in Tanah Abang is clearly a state asset,” Maruarar said.

The government plans to use the site for public housing. However, news reports indicate that authorities are still reviewing competing claims, which have delayed construction until the parties resolve the dispute. Maruarar said the government would follow the applicable legal process.

The housing expansion would improve living conditions and generate jobs for local manufacturers. Ultimately, its success will depend on the timely construction, the transparent selection of beneficiaries, and the consistent quality control.