Selasa , 05 December 2017, 18:30 WIB

World Bank to lend Rp5.4T for 1 million houses program

Rep: Melisa Riska Putri, Idealisa Masyrafina/ Red: Reiny Dwinanda
Antara
Land acquisition was not the only constraint in providing one million house as planned by the government. (Illustration)
Land acquisition was not the only constraint in providing one million house as planned by the government. (Illustration)

REPUBLIKA.CO.ID, JAKARTA -- Ministry of Public Works and People's Housing will receive a loan amounting to 425 million USD or approximately Rp 5.737 trillion (exchange rate Rp 13,500 per USD) from World Bank. 

Director of Housing Provision Planning of Ministry Hardi Simamora said, the loan will be used to continue to drive the completion of one million houses program. 

"This assistance includes financing and self-supporting houses," said Hardi at Ministry Building on Tuesday (December 5).

However, the loan from the World Bank has not yet been signed. "It is expected to be signed in 2018," he said.

According to Hardi, there are 3.5 million uninhabitable houses in Indonesia that must be addressed.

The target to build one million houses program has not been achieved. The government built 699,770 in 2015, 805,169 houses in 2016, and 751,973 until November 27, 2017.

Housing Director General Khalawi Abdul Hamid said, the total achievements by the end of this year were estimated at only 850 thousand units. 

According to him, the land acquisition was not the only constraint in providing the house. The regulation has also hinder the project.

"If the regulation fully supports, the project could exceed one million houses," he said in a media briefing at the Ministry Building on Tuesday (December 5).

In 2017, the ministry focused on building subsidized houses in five areas. In 2018, the project will focused on 10 plus two areas, namely Toba Lake, Borobudur, Mount Bromo, Mandalika, Labuan Bajo, Morotai, Seribu Island, Tanjung Lesung, Tanjung Kelayang and Wakatobi National Park areas.

Meanwhile, the other two were Mande and Tana Toraja areas.