Indonesian Housing Minister Eyes India, China for Housing Program, Warns Against Becoming 'Cheap Market'

Minister of Housing and Spatial Planning, Maruarar Sirait, also known as Ara, has expressed his intention to open opportunities for learning from India and China to accelerate the national program of building 3 million houses. However, he strongly cautioned against making Indonesia merely a 'cheap market'. Sirait stated that the government needs to study how other countries manage large-scale housing programs, identifying India and China as key countries of interest. "India and the People's Republic of China, perhaps these two countries. There are things we need to study," he said at the Presidential Palace Complex in Jakarta on Friday, July 31. He emphasized that national interests must always be the top priority in studies and cooperation with other countries. Indonesia must gain tangible benefits, not just become a buyer of technology or a market for foreign products. "Don't make Indonesia just a market," Sirait stressed. He also highlighted the necessity of technology transfer in housing cooperation. The government is looking for technologies that are safe, fast, and affordable for the community. "Technology transfer is a must. We need to see safe, fast, and affordable technology," Sirait said. Furthermore, he stressed the importance of actively involving domestic business actors in the housing program, including local producers of building materials such as tiles, bricks, cement, and iron. "Micro, small, and medium enterprises (MSMEs) must be prioritized. Our tiles, our bricks, our cement, our iron," he stated. According to Sirait, the government has previously held discussions with China's Minister of Housing, and Indonesia continues to learn and observe housing management methods from other countries. Sirait also touched upon the launch of subsidized housing units, noting that 62,000 units were launched at once. This program spans 160 locations across 36 provinces and involves banks and developers. "The launch of subsidized houses, 62,000 units at once, is perhaps the largest ever," he remarked. He pointed to President Prabowo Subianto's support as a catalyst for accelerating the housing program, citing the exemption of Acquisition of Rights to Land and Building (BPHTB) and Building Approval (PBG) fees. "It's amazing that the President has waived BPHTB and PBG fees. This is historic," he praised. Sirait concluded that accelerating the 3 million house program requires more than just chasing numbers; it also necessitates ensuring the safety of the technology used, affordability, and the vitality of the domestic industry.