The Government Is Preparing A Design For The FLPP That Includes Contributions From Both The Banking Sector And The State Budget

The Ministry of Housing and Settlements is working on redesigning the state budget for the Housing Liquidity Financing Facility (FLPP) to make it more cost-effective for banks. This change aims to increase the allocation for FLPP home loans within the existing budget. Currently, the government has set the FLPP budget for 2025 at IDR 28.2 trillion, which will support 220,000 housing units. "We hope that adjusting the distribution of FLPP will enhance its delivery," said Minister of Housing Maruarar Sirait, also known as Ara, in a statement on Friday (January 31, 2025). He emphasized the importance of ensuring that the FLPP program targets the right beneficiaries, so that only those in genuine need can access this housing financing. "Since these subsidized homes are funded by the state budget, it is crucial that they are allocated correctly and executed properly," Ara stressed. He also instructed housing developer associations to prepare estimates of the costs for building subsidized homes. This data will be essential for calculating the planned changes to the proportion of home loans under the FLPP scheme this year, and it will help establish more accurate pricing for subsidized housing.

Tag: FLPP Housing Liquidity Financing Facility Maruarar Sirait