Indonesia’s Business Property :
One Million Houses Program in 2020

Authored by : Fitri Aulia | 15 December 2020

The One Million Houses Program

The One Million Houses (OMH) program is one of the government’s breakthroughs in the housing sector to provide decent and affordable housing for the people of Indonesia. It was done under the Presidency of Jokowi since April 2015, aiming to provide adequate housing facilities to low income households and tackle the issues of housing backlog.

Source : Ministry of Public Works and Public Housing (PUPR), Infographic made by Indonesia Soken

As the name implies, this program is targeted to achieve the construction of one million houses each year.Meanwhile, the proportion of housing accounts to 60% – 70% for MBR and 30% – 40% for non MBR.

It can be seen from the data above, which was taken based on the Ministry of Public Works and Public Housing (PUPR) report, accumulated from 2015 to 2020, the achievement of the program has reached 5,3 million units in total.

The beginning is always the hardest- during the first years, it couldn’t meet the target expected of building one million houses per year. But then, with the rapid coordination of the stakeholders (government, financial institutions, the private sector and the community) towards the OMH Program, we could witness an increase starting from 2018 and reached its peak in 2019 (See Chart Below).

Source : Ministry of Public Works and Public Housing (PUPR), Infographic made by Indonesia Soken

In 2018, it has surpassed its initial planned target. Total 1,132,621 units were built during this year. This shows the achievement of building as much as 132,621 units than expected.

Seeing this great accomplishment, in 2019, the government sets an even higher annual target from building just 1 million to 1,250,000 houses. The results did not disappoint, as many as 1,257,852 housing units were built in 2019 throughout Indonesia. This means that it has successfully reached the already high target compared to the previous years.

The data above shows that the number of houses built since the introduction of OMH program in 2015 up until 2019 are consistently increasing every year. However, it experienced a great contract in 2020 related to the Covid-19 pandemic and changes that occur in the world.

Recent Updates of OMH Program

In 2019

Based on data compiled by Ministry of PUPR, the achievements of the One Million Houses Program until 31 December 2019 reached 1,257,852 housing units throughout Indonesia. For the construction of MBR houses the total is 938,405 housing units and houses for non-MBR around 312,691 housing units.

Source : Ministry of Public Works and Public Housing (PUPR)

In 2020

Ministry of Public Works and Public Housing (PUPR) reported that up until 31 October 2020, the One Million Houses Program has reached 601,637 units. This consists of 434,828 low-income community houses (MBR) and 166,809 non-MBR units.

Source : Ministry of Public Works and Public Housing (PUPR)

Finally, we might understand that the property business in Indonesia,specifically the OMH Program has the potential to develop more despite the massive impact it has taken from pandemic outburst. Combining the stakeholders effort and the government’s support to stimulate this sector are expected to help revive the business sector in the future.

References

Kementerian Pekerjaan Umum dan Perumahan Rakyat. (2020, November 3). Tingkatkan Kepemilikan Hunian Layak, Realisasi Program Sejuta Rumah Hingga Akhir Oktober 2020 Capai 601.637 Unit. Retrieved from https://www.pu.go.id/berita/view/18970/tingkatkan-kepemilikan-hunian-layak-realisasi-program-sejuta-rumah-hingga-akhir-oktober-2020-capai-601-637-unit

Kementerian Pekerjaan Umum dan Perumahan Rakyat . (2020, January 3). Capaian Pembangunan Rumah Tembus 1,25 Juta Unit. Retrieved from https://perumahan.pu.go.id/berita/view/227/capaian-pembangunan-rumah-tembus-1-25-juta-unit

Kompas. (2020, July 29). Alokasi Tambahan Rp 1,5 Triliun untuk Perumahan Terkait 3 Program Retrieved from https://properti.kompas.com/read/2020/07/29/191334021/alokasi-tambahan-rp-15-triliun-untuk-perumahan-terkait-3-program?page=all

BUMN inc. (2020). Target Penyaluran KPR Bank BTN Naik Menjadi 300.000 Unit Per Tahun. Retrieved from http://bumninc.com/target-penyaluran-kpr-bank-btn-naik-menjadi-300-000-unit-per-tahun/?more=2