TEMPO.CO, Jakarta - Minister of State-Owned Enterprises (BUMN) Erick Thohir urges private banks to participate in financing the public housing program, in line with the plan to accelerate the construction of three million housing units per year. This project requires cross-sector collaboration, including the involvement of private banks.

"We hope to see private banks play a role in supporting this government program. It's not just us. This is a large-scale initiative that requires broad support to benefit the Indonesian people, who are in great need of housing," Erick said during a meeting at the Bank Indonesia Building on Tuesday night, February 11, 2025.

Currently, Erick noted that the housing finance sector is still dominated by state-owned banks under the Association of State-Owned Banks (Himbara), including Bank Tabungan Negara (BTN), Bank Mandiri, Bank Rakyat Indonesia (BRI), and Bank Negara Indonesia (BNI).

He emphasized that approximately 80 percent of the subsidized housing credit market is still supported by BTN, making private bank involvement crucial to accelerating progress toward the target. The government's push to realize mass public housing construction has also been welcomed by Bank Indonesia (BI).

Following a meeting between BI Governor Perry Warjiyo, the Minister of BUMN, Minister of Housing and Settlement Areas (PKP) Maruar Sirait, the leaders of Danantara, and the Chairperson of Commission XI of the Indonesian House of Representatives (DPR), BI decided to increase the macroprudential liquidity incentive from Rp 23.19 trillion to Rp 80 trillion to support the housing sector.

Perry highlighted that housing plays a strategic role in driving economic growth and job creation. "Housing not only boosts economic growth but also supports related industries such as cement and steel while increasing employment opportunities," Perry said.

Minister of Housing and Settlement Areas (PKP) Maruar Sirait noted that the sector faces major challenges, particularly in terms of liquidity availability. He expressed hope that synergy between the government, the banking sector, and investors could serve as a solution to meet the housing needs of the people.

"We are aware of liquidity constraints. Our hope is that BI can help ensure liquidity availability and that private banks can participate so this program can run at full capacity," said Maruar.

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