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Govt’s plan to downsize subsidized housing faces internal, public opposition
The Public Housing and Settlements Ministry is facing mounting scrutiny after a leaked draft decree revealed plans to significantly reduce the minimum size requirements for subsidized housing units. Critics warn the proposed changes could compromise the basic standards of safety, health and comfort.
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All in a row: A woman and her child walk past subsidized housing for media industry workers on Tuesday at Gran Harmoni Cibitung Residential Complex, Bekasi Regency, West Java. The government has prepared 1,000 subsidized homes in the first phase for media industry workers across Indonesia under the Mortgage Financing Liquidity Facility (FLPP) scheme. (Antara/ Fakhri Hermansyah)
T
he Public Housing and Settlements Ministry is facing mounting scrutiny after a leaked draft decree revealed plans to significantly reduce the minimum size requirements for subsidized housing units. Critics warn the proposed changes could compromise the basic standards of safety, health and comfort.
According to the leaked document, the ministry proposes cutting the minimum land area for subsidized homes from the current 60 square meters to just 25 sq m. The minimum building size would also be reduced from 21 sq m to 18 sq m.
These changes mark a sharp departure from the current regulation, Public Works and Housing Ministerial Decree No. 689/KPTS/M/2023, which mandates that subsidized housing must occupy between 60 and 200 sq m of land, with building sizes ranging from 21 to 36 sq m.
Public Housing and Settlements Minister Maruarar “Ara” Sirait has confirmed the plan, explaining that the proposal aims to tackle the ongoing housing shortage, particularly in densely populated urban areas. He argued that the revised policy would offer more diverse housing options and extend the reach of government subsidies, especially to individuals and non-family households.
“My intention [in drafting the regulation] is good, which is to reach more beneficiaries,” Ara said in an official statement released on Monday. "I don’t think it would disadvantage anyone. I’m optimistic this policy will be well-received."
Read also: Lawmakers berate minister over unclear ‘3 million houses’ program
However, the proposal has sparked internal dissent. Deputy Housing Minister Fahri Hamzah publicly rejected the downsizing plan in a statement to The Jakarta Post on Tuesday, though he did not elaborate on his objections.
