JAKARTA — The Indonesian government, through Deputy Minister of Housing and Settlement Areas (PKP RI) Fahri Hamzah, is preparing to launch a policy aimed at normalizing land prices to make housing more affordable for low-income communities.

“The high cost of housing isn’t due to construction or technology—it’s because of irrational land prices. That’s why land prices must be stabilized by the government. As our President has said, we must apply Article 33 of the Constitution,” Fahri explained during a public discussion titled “Housing for All: Government Strategies to Accelerate Access to Decent Living” at Rumah Besar Gatotkaca in Jakarta on Wednesday (August 6, 2025).

He emphasized that land price control is key to achieving affordability. “Prices need to be brought down. That’s why President Prabowo is pushing for the use of state-owned land to reduce costs,” he added.

Fahri also floated the idea of long-term leases on government land at zero cost. “If the land price is effectively zero, then what’s left is only construction cost,” he said.

He cited examples such as a pilot housing project by Semen Indonesia Group that cost only Rp 50 million (approximately USD 3,100). “I’ve met with other companies that built houses for just Rp 60 million. This proves that what makes housing expensive is the land, not the building itself,” said Fahri, who hails from West Nusa Tenggara.

Former Chairman of the Real Estate Indonesia (REI) 2019–2023, Paulus Totok Lusida, added that achieving the government’s 3 Million Homes Program requires close collaboration between the government as regulator, developers, banks, and the community.

According to Totok, regulatory alignment plays a critical role. He noted ongoing difficulties with synchronizing regulations—particularly with regional governments.

Dedek Prayudi, Senior Expert Staff at the Presidential Communication Office (PCO), emphasized that the 3 Million Homes Program is one of the administration’s most vital priorities.

“About 35 percent of our population still lives in substandard housing,” Dedek pointed out.

He stressed that President Prabowo’s administration is committed to delivering prosperity to all levels of society.

“Our national budget is being directed to the bottom of the socioeconomic pyramid—made tangible through flagship programs, strategic policies, and fast-impact initiatives such as free nutritious meals, the 3 Million Homes Program, school renovations, free health checks, and more. Every rupiah of public money is being returned to the people in the form of real benefits,” Dedek concluded.