Public Works and Housing Ministry has targeted by the end of 2018 to build one million houses, which has never been achieved since 2015
“Since 2015 the target of building one million houses has not been achieved,” said Director of Housing Provision in the Ministry, Khalawi Abdul Hamid, in a national seminar themed innovation in construction to support one million houses based on sustainable community concept, organised by Faculty of Engineering in Grha Sabha Pramana UGM on Thursday (3/5).
Khalawi said in 2016, as many as 800 thousand homes had been built and in 2017 it was 900 thousand. “We are determined to complete the 1 million homes in 2019 to meet the target,” he said.
He explained the barrier that had hampered the project was the lack of lands for the low income people. “It’s difficult to find standard lands due to the high price of lands in the city,” he said.
His office, however, had issued policy engaging the private sector to build the houses through development strategy schemes using State Budget and Regional Budget.
“(The budget for the one million homes) is 20% percent from the State Budget, 30 percent from subsidies from various funding sources, and the rest, 50 percent, from the private sector and society,” he said.
He mentioned it would be very hard for the people to pay as high as 80 percent of the costs, adding “there are 56 cities that still need to be freed from slum areas.”
He said the model that involved the private sector was very beneficial and a help to the government, mentioning that the interest from the private sector turned out to be very good.
The government has - among others - encouraged the low income people having no collaterals to get a house, such as by encouraging the land banking system, creative payment initiative, and use of savings (Tapera) as collateral.
He further expected the role of the higher learning in offering home designs that support sustainable development and the one million homes programme.
House construction expert from Civil Engineering and Environment Department at UGM, Prof. Ir. Iman Satyarno, M.E., Ph.D., said such programme needed adequate technology and method. Hence, a cooperation is needed between R&D team, contractors and higher learning to adopt and develop these models. “The material technology that is needed has to be stronger, lighter, more durable, and more environmentally friendly,” he said.