Government Facilitates the Flow of Subsidized Housing Program in 2021

Some good news came from the Ministry of Public Works and Housing (PUPR) at the end of 2020 concerning the housing program in Indonesia, which is to improve accessibility for low-income people (MBR) through various housing subsidy programs that will continue in 2021.

Indonesian flag, Merah Putih on Indonesian independence day
Minute Read

3 mins

Published

03.02.2021

Some good news came from the Ministry of Public Works and Housing (PUPR) at the end of 2020 concerning the housing program in Indonesia, which is to improve accessibility for low-income people (MBR) through various housing subsidy programs that will continue in 2021.

Indonesia parliament

The housing subsidy program through the Housing Financing Liquidity Facility (Fasilitas Likuiditas Pembiayaan Perumahan or FLPP) will increase its budget in 2021 to IDR 19.1 trillion, of which IDR 16.62 T comes from the State Revenue and Expenditure Budget (APBN) and IDR 2.5 trillion from revolving funds. This was conveyed by the President Director of the Center for Housing Financing Fund Management (PPDPP) Arief Sabaruddin in a press release (10/10/2020).

From the budget, IDR 16 trillion will be used to build 157,500 housing units and also for the allocation of the interest rate difference (SSB) subsidy scheme and Advance Assistance Subsidy (SBUM), financing from K / L for housing infrastructure, facilities and general utilities for public and exclusive houses, flats, improving the quality of independent houses, and new construction of independent houses..

With an increase in the allocation of funds, Arief Sabaruddin stated that PPDPP is ready to improve performance by implementing an integrated system that makes it easier for all stakeholders to use automation and artificial intelligence (AI) systems through the Housing Subsidized KPR information system application (SiKasep).

Through SiKasep, the government can find the public’s need for housing availability and encourage developers together with banks to meet the demand for suitable housing. With SiKasep, users (prospective homeowners) are connected with the government, implementing banks, and developers through a host to host system.

In the SiKasep application there are features of the Developer Collection Information System (SiKumbang) and the Construction Monitoring System (SiPetruk) which are targeted to be released at the end of 2020. SiPetruk is intended for developers to ensure that the housing built is in accordance with the various requirements. Cooperating banks will benefit from the convenience of document feasibility that has been integrated through the host to host system.

PPDPP collaborates with the Construction Service Development Agency (LPJK) with a partnership concept from Construction Management (MK) who acts as the field examiner. MK will visit the field in accordance with the application for examination from the developer. MK then checks whether the house built is in accordance with the digital data submitted by the developers through the SiKumbang feature.

That way, developers no longer need to organize a specialized building supervisor team. The developer simply provides a notification in the application that the house they are building is ready to be monitored within a period of 3 months.

From the examination, MK will provide an assessment report that is directly linked by the PPDPP system. If it is declared suitable for habitation, the house list will automatically appear in SiKasep so that it can be directly sold to low-income people (MBR).

Aerial View of Jakarta Downtown Skyline with High-Rise Buildings With White Clouds and Blue Sky, Indonesia, Asia

Apart from SiKasep, PPDPP also conducted socialization for the e-FLPP 2.0 application to banks to improve service performance. The e-FLPP 2.0 system is the latest version of e-FLPP where there is an increase in service performance by providing automation of documents required by the executing bank through the system. This latest version of the application has implemented an electronic signature feature that can be accessed directly via electronic gadget to shorten the process from days to just a few hours.

“The electronic signature security that has been implemented has collaborated with the National Cyber ​​and Crypto Agency (BSSN) Electronic Certification Center which is the highest security standard in Indonesia. These various systems continue to be improved because we face various challenges for subsidized housings,” said Arief Sabaruddin.

Arief considered that the challenge for 2021 is to distribute FLPP faster than in 2020. Therefore, November and December 2020 are used as acceleration preparations for the 2021 FY with banks to be more effective, efficient, productive and reliable.

On this occasion, Arief also mentioned that the quota allocation in 2021 will be divided by province, where every 3 months the executing bank can propose changes to the province along with the implementing bank quarterly evaluation activities.