Indonesia simplifies housing rules for low-income families

Low-income families in Indonesia are being offered simpler housing requirements and exemptions from property-related charges as part of support for President Prabowo Subianto’s 3 Million Homes programme, according to Home Affairs Minister Muhammad Tito Karnavian.

In remarks cited on 25 October 2026, Tito said eligible households would not have to pay the land and building acquisition tax, known as BPHTB, when building or improving a home. He described the charge as 5 per cent of the property’s taxable assessed value.

The measures also waive building approval fees for low-income households. Tito said he had sent a circular on the policy to all regional heads. Eligibility for low-income status is determined by earnings, he said, rather than solely by whether a household belongs to the bottom 40 per cent of the population.

Tito estimated that around 30 million families either lacked a home or occupied inadequate housing. He said separating housing responsibilities from the Ministry of Public Works and Public Housing into the Ministry of Housing and Settlement Areas would give the issue more focused attention.

For the BSPS home-improvement assistance programme, residents lacking land certificates, particularly those in Jakarta’s slum settlements, can submit a certificate of financial hardship issued by a village or urban ward head, Tito said.

He said the regulatory changes were intended to encourage developers and other private-sector participants to help meet housing needs, rather than relying only on state-budget financing. He also called for officials to assess homes directly to better understand residents’ needs.