Developers Urge Additional FLPP Funds

By Editorial Team 27/01/2020
Summary

The government allocates Rp 11 trillion for the housing finance liquidity facility (FLPP) program this year, higher than last year's budget of Rp 7.1 trillion. However, the housing development association believes that the budget for the program, which aims low-income people (MBR) through subsidized housing loans (KPR), is still lacking, since it’s only enough to finance the construction of 102,500 houses. Moreover, some Rp 2 trillion of which were to cover last year's additional budget.

Indonesian Real Estate (REI) Chairman Paulus Totok Lusida, on Thursday, January 23, said this year's remaining FLPP budget of Rp 9 trillion would be used up in April as it is only able to fund the construction of around 86,000 houses. Moreover, REI estimates demand for MBR housings could reach 260,000 units this year, which requires Rp 29 trillion in FLPP budgets. Thus, there’s a shortfall of Rp 20 trillion.

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