We would appreciate your comments
Insight In News
Indonesian Highlights and Insights in News
Indonesian Highlights and Insights in News
Business_Economy
Doc: HomeGuide
BTN: 10 Million Families Do Not Own House
Saturday, 14 Dec 2024
The President Director of PT Bank Tabungan Negara (Persero) Tbk, Nixon L.P. Napitupulu, has stated that housing remains a significant issue for a large portion of the Indonesian population. Currently, approximately 10 million families lack adequate housing, while an estimated 24 to 26 million families reside in substandard living conditions. The prevalence of inadequate housing is largely attributed to the absence of proper sanitation facilities. Consequently, Indonesia ranks as the third largest country globally where open defecation is still practiced.
"We have 10 million families without homes in Indonesia today, which is a substantial figure. Additionally, 24 to 26 million families, based on PLN 450 VA data, live in uninhabitable conditions, primarily in rural areas due to sanitation issues," he remarked during the Kafegama Seminar at the BTN Tower in Jakarta on Saturday, December 14, 2024. Therefore, it is hoped that the initiative to construct 3 million houses annually, proposed by President Prabowo Subianto, will address these housing challenges.
Nonetheless, BTN, as a bank specializing in housing finance, views this initiative as a significant challenge. Currently, the capacity for house construction in Indonesia is limited to between 400,000 and 600,000 units per year. "Certainly, the goal of building 3 million houses presents a considerable challenge, requiring an increase of nearly seven to eight times the current capacity," he stated. In addition to the construction capacity issue, several other critical tasks must be addressed to realize the 3 million housing program, including building quality, land certification, and environmental impact assessments (Amdal).
Furthermore, from the perspective of housing liquidity, the banking sector faces substantial challenges. He indicated that enhancing banking liquidity could be achieved through securitization; however, this solution is not easily implemented. "The problem is that the market for securitization in Indonesia is quite limited." (ferry@insightinnews.com)
