Developers in Regions Urge Government to Increase Subsidized House Prices


Real Estate Indonesia (REI) throughout Sumatra hopes that the government can increase subsidized housing prices. This is in line with the increase in the price of building materials and fuel oil (BBM).

Regional Coordinator I of the REI Central Executive Board, Mohammad Miftah, said that the business of providing special boards for low-income people (MBR) was already difficult due to the drastic increase in material prices in the last two years.

"Especially with the increase in subsidized fuel prices, it is certain that material prices and production costs will be higher," he said in a written statement, Saturday, September 10, 2022.

Property business actors from the Sumatra region hope that the proposed adjustment to the selling price of subsidized houses can be realized soon. This is because the subsidized housing has not increased in price for three years.

"In fact, the subsidized home industry contributes greatly to the national gross domestic product (GDP), moves the people's economy and absorbs millions of jobs," he explained.

Meanwhile, the Chairman of the DPD REI Jambi, Ramond Fauzan, admitted that for the government, the issue of adjusting the selling price of subsidized housing is a sensitive issue because in line with the adjustment of subsidized fuel prices, it will boost inflation.

"We understand that the step to adjust the selling price of subsidized houses in the midst of current conditions has the potential to cause inflation. However, the stakes are the property industry in particular, low-income housing in the regions. This will have an impact on labor absorption and the regional economy," said Ramond.

The housing developer association has submitted a proposal to adjust the selling price of subsidized housing with the proposed adjustment amount of 7-10 percent.

The Ministry of Public Works and Public Housing (PUPR) since the end of 2021 has summarized the input from the developer association.

"At that time, we hoped that the policy could be enacted in early 2022. However, it turns out that until now there has been no decision," said Chairman of the DPD REI Riau Islands, Toni.

If there is no adjustment to the selling price, the subsidized housing developer will certainly be more burdened.

"The program to provide livable houses for MBR will be threatened. This is because property industry players cannot run their business sustainably," said Toni.

The benchmark for subsidized housing prices is determined based on the Ministerial Decree (Kepmen) of Public Works and Public Housing (PUPR) No. 242 Year 2020 with a range of IDR 150.5 million to IDR 219 million (depending on the region). For the determination itself is determined by the Ministry of Finance.

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