TEMPO.CO, Jakarta - The Public Works and Public Housings Ministry says that the high value of land and the lack of its availability have been the biggest challenges for the one million housing program.

“Specially allocated land areas meant for MBR (people with low income) housing are not available yet. We expect the land banking method would help,” the ministry's Directorate General of Housing Finance Lana Winayanti said today, May 16.

The other challenges are, Lana says, the complicated process of land acquiring and land certification, as well as the low purchasing power of the consumers.

“The adaptation or acculturation process is also sluggish, especially in the low-cost apartments area where the tenants and the developers still need mediation,” Lana said.

She argues that a synergy between all of the stakeholders, either it is the central government, regional government, or even the developers, is the main thing to make the program successful.

The central government is only able to provide 10-15 percent of the total one million target. In addition, they can only subsidize 35-40 percent for each house.

The one million housing program has re-emerged in 2017. Around 700,000 houses have been constructed for MBR and non-MBR. In order to accelerate the program, the government provides the housing finance liquidity facility (FLPP) for 120,000 houses.

ANGELINA ANJAR SAWITRI