Private Employees Received the Most Housing Subsidies under the FLPP Program (2010-2023)

The Indonesian government has disbursed Rp108.5 trillion (approximately US$7.1 billion based on the exchange rate at the time of translation) for the Housing Financing Liquidity Facility (FLPP) program from 2010 to July 2023. These funds were channeled through revolving funds and State Capital Participation (PMN).

The Directorate General of State Assets (DJKN), Dedi Syarif Usman, explained that FLPP is one of the government's inclusive programs to support Low-Income Communities (MBR). Its aim is to provide mortgage loans (KPR) to MBRs so they can own decent and affordable housing.

"From 2010 to July 2023, the FLPP program has supported the ownership of 1,289,748 housing units across Indonesia," said Dedi in his official statement on Thursday (August 31, 2023).

Dedi explained that the beneficiaries of the FLPP program are predominantly private sector employees, accounting for 77%.

Furthermore, 9% of FLPP recipients are civil servants (ASN), followed by entrepreneurs (9%), members of the Indonesian National Armed Forces (TNI) and National Police (Polri) (4%), and the remaining 3% from other sectors.

The FLPP KPR scheme involves installments with a 5% annual interest rate and a tenor of up to 20 years.

To continue the program, the government has allocated Rp19.48 trillion (approximately US$1.28 billion) in the State Budget (APBN) this year to support the FLPP program for the People's Housing Savings Management Agency (BP Tapera).

In addition, the government also channeled PMN to PT Sarana Multigriya Finansial (Persero) or SMF amounting to Rp1.53 trillion (approximately US$101 million). This PMN received by SMF will be leveraged through debt issuance to increase the number of mortgages channeled to MBRs and reduce the burden on the APBN.

(See also: DKI Jakarta Had the Lowest National Home Ownership Rate in 2022)