Indonesia’s 3 Million Housing Program Gets $24 Million CSR Boost for New Constructions and Renovations

Indonesia’s 3 Million Housing Program Gets $24 Million CSR Boost for New Constructions and Renovations

Indonesia: Minister of Housing and Settlement Areas (PKP), Maruarar Sirait, announced the receipt of approximately Rp400 billion (USD 24 million) in private sector corporate social responsibility (CSR) funds to support the government’s 3 million housing program. This funding will contribute to the construction of 1,750 new houses and the renovation of 3,500 homes. The new housing units will be built by PT Adaro Minerals in South Kalimantan and PT Berau Coal in East Kalimantan, each contributing 500 units, and Agung Sedayu Group in Banten with 250 units. Renovation efforts will be led by Sugianto Kusuma (Aguan) through the Buddha Tzu Chi Foundation (2,000 units in Banten, Jakarta, West Java, and Central Java), Prayogo Pangestu through Barito Pacific Group (1,000 units in Jakarta and Banten), and Anindya Bakrie via the Indonesian Chamber of Commerce and Industry (500 units in Jakarta, Banten, East Nusa Tenggara, and Bangka Belitung). 

Minister Maruarar stated that the housing initiative is being realized through cooperation among four sectors: government, developers, community, and private CSR. To reduce housing costs, the ministry plans to eliminate land expenses by utilizing land confiscated by law enforcement, potentially lowering development costs by up to 40%. The program aims to construct 3 million housing units in 2025, targeting primarily low-income households earning below Rp3.1 million (USD 189) per month, with 340,000 units for those earning Rp3.1–8 million (USD 189–489) and 100,000 units for higher-income groups. The budget for the entire program is estimated at Rp23.32 trillion (USD 1.42 billion). Subsidies include Rp21.6 trillion (USD 1.31 billion) in installment support for low-income groups, Rp1.48 trillion (USD 90.2 million) for interest rate, liquidity, and savings support for middle-income groups, and Rp240 billion (USD 14.6 million) in insurance premium aid for higher-income individuals. Maruarar also highlighted those state-owned enterprises disbursed CSR funds amounting to Rp11.2 trillion (USD 684 million) in 2024. 

Source: Indonesia business report