Interested in Subsidized Housing? Understand the Concept and the Rules First!

Having a residence in the current era has become a dream for many people. Not just because it is a necessity, but this has become a dream due to the high property prices that must be paid to obtain a house. Recently, the concept of subsidized housing has emerged as a solution for the community from the government.

In simple terms, subsidized housing is a program launched by the government to provide affordable housing for the community. By utilizing low-interest subsidized mortgages with longer repayment terms, the government hopes this will be a way for people to own their own homes.

The discussion has been ongoing for a long time, and several subsidized housing complexes can still be found today. However, the issue has recently resurfaced after the Minister of Housing and Settlements Maruarar Sirait conducted a review of the mock-up subsidized housing for urban areas designed by one of the developers.

Understanding the Subsidized Housing Concept from the Government.

According to a document from the Indonesian Audit Board (BPK RI) in 2023, subsidized housing is a government program from the Ministry of Public Housing. This program is conducted to meet the housing needs of Indonesian citizens, offered at affordable prices.

The Director General of Infrastructure Financing at the Ministry of Public Works and Public Housing explains that subsidized housing is a home built at an affordable price obtained through the Home Ownership Credit scheme, whether conventionally or through a sharia scheme.

The main goal is to ensure that anyone can own their own residence, especially for low-income communities who face significant challenges in owning a house in the current times.

Several housing complexes have actually been built and marketed extensively. The People's Housing Savings Management Agency recorded the distribution of subsidized houses through the Housing Financing Liquidity Facility scheme, which has reached 129,953 units from October 20, 2024, to March 13, 2025.

Subsidized Housing Concept, Regulations, Size, and Price.

The issue related to this concept of affordable housing has resurfaced after the introduction of a house concept with a total size of 14 square meters, which is claimed to be in accordance with the Indonesian National Standards for housing for 2 people. This claim was made by the Ministry of Housing and Settlements, as stated in one of the articles in online media. (https://kumparan.com/kumparanbisnis/konsep-rumah-subsidi-14-meter-persegi-diklaim-sesuai-sni-untuk-hunian-2-orang-25ISi5OJBlj/3).

The rules that form the basis of the 14 square meter subsidized housing concept.

The rule that serves as the basis for this concept is SNI 03-1733-2004. In this regulation, it is stated that the standard for a livable space is calculated in cubic meters of air per person. For adults, the measurement is 16 to 24 cubic meters of air.

If converted to square meters by dividing with the ceiling height using that formula, a house concept with an area of 14 square meters is still comfortable for 2 people or a married couple to live in. This design was created by one of the large property developers in Indonesia, but it received negative opinions from the public. Nevertheless, this concept, which has generated much discussion, is still in the planning stage, and there has not been any further decision regarding this concept.

If we look at the previous regulations, namely Law Number 1 of 2011 Article 22 Number 3, the floor area of subsidized houses is clearly stated. The house must have a minimum floor area of 36 square meters to be considered suitable.

Subsidized House Size by Type.

Apart from the lively discussion about houses with a size of 14 square meters, quite a number of subsidized houses have been built in various types. Each has different sizes, and some examples are as follows.

Type 21, the smallest subsidized house with a size of 3 x 7 meters, 5.25 x 4 meters, or 6 x 3.6 meters. This house is built on land measuring 50 - 60 square meters.
Type 30, classified as medium, this type has a building area of 30 square meters. The available land area is around 60 to 72 square meters, depending on the developer's policy.
Type 36, often found in the suburbs of large cities with building sizes of 6 x 6 meters or 9 x 4 meters. The land used to build it ranges from 60 to 72 square meters.

Price Range Given in Each Region.

The Indonesian government through the Ministry of Public Works and Public Housing has set the price limits for subsidized housing for the year 2025. This regulation is stated in the Decree of the Minister of Public Works and Public Housing Number 689/KPTS/M/2023. The price of houses in each region will be different, with the following illustration:

Java (outside Jabodetabek), Sumatra (outside the Riau Archipelago, Bangka Belitung, Mentawai): Rp166,000,000.
Kalimantan (except Murung Raya, Mahakam Ulu): Rp182,000,000.
Sulawesi, Bangka Belitung, Mentawai, and the Riau Archipelago (except Anambas): Rp173,000,000.
Jabodetabek, Bali, Nusa Tenggara, Maluku, North Maluku, Anambas, Murung Raya, Mahakam Ulu: Rp185,000,000.- Papua: Rp240,000,000.

Plan for Adjusting the Rules and Specifications of Subsidized Housing.

The plan to adjust the rules and specifications for subsidized housing has actually been announced for some time now. Recently, a draft decision from the Minister of Public Works and Public Housing was circulated, which mentioned adjustments to subsidized housing in terms of land area or building size.

In the circulated draft, it was stated that, in general, the size of land and buildings used as references would become smaller. However, shortly thereafter, this issue was refuted by the Deputy Minister of Public Works and Public Housing, Fahri Hamzah, who stated that the size of subsidized houses is actually planned to be increased but urged to wait for an official decision from the government.

Also read: 7 Tips to Prepare for Hiking Abroad and Enjoy the Excitement

Home Insurance and Subsidized Housing.

One issue that certainly should not be overlooked is the protection of home insurance on prospective housing that you will purchase. In the context of subsidized housing, there are quite a few questions regarding whether this house can have home insurance like other residences or not.

The short answer is yes, subsidized houses can have home insurance just like other residences. Generally, purchasing a subsidized house will entail insurance coverage for several aspects, such as fire, life insurance, and credit insurance. Insurance related to disasters is still under discussion.

SmartHome Insurance from PT AXA Insurance Indonesia.

Considering that various risks are always present, it is certainly recommended that you have comprehensive Home Insurance that can provide optimal benefits. SmartHome Insurance from PT AXA Insurance Indonesia is a reliable recommendation for this matter.

This insurance provides protection against the value of items in case of damage/loss that results in financial loss to you as the insured, as well as legal claims from third parties against the insured for the value of items according to the benefits guaranteed in the policy provisions.

The details that will be covered include the following

Fire-Lightning strike
Explosion
Aircraft crash-Smoke
Landslide-Theft preceded by forcible entry
Loss or damage due to accidents occurring on buildings
Expenses for firefighting equipment-Debris cleanup
And other points according to the mutually agreed provisions.

That was a brief overview of the concept of subsidized houses, regulations, sizes, and issues that are currently being widely discussed. Beyond all the controversies, as a society, you should continue to pay attention to the developments of this issue, so you don't miss out on the latest regulations. Additionally, ensure you provide reliable Home Insurance, such as SmartHome Insurance from PT AXA Insurance Indonesia for the residence you will be occupying. Hope this is useful!

Referensi:

https://www.detik.com/properti/berita/d-7961255/ara-pamerkan-contoh-rumah-subsidi-cuma-14-meter-punya-lippo
https://www.finansialku.com/asuransi/asuransi-rumah-subsidi/
https://www.rumah123.com/panduan-properti/membeli-properti-72850-tipe-ukuran-rumah-subsidi-id.html
https://nasional.kontan.co.id/news/penyaluran-rumah-subsidi-hingga-13-maret-2025-tembus-27528-unit
https://kumparan.com/kumparanbisnis/konsep-rumah-subsidi-14-meter-persegi-diklaim-sesuai-sni-untuk-hunian-2-orang-25ISi5OJBlj/full
https://www.ideal.id/learn/Perumahan-Subsidi-Pengertian-Syarat-Kelebihan-dan-Kekurangannya
https://sokoguru.id/lokal/resmi-daftar-harga-rumah-subsidi-2025-di-seluruh-indonesia-tertinggi-rp240-juta-di-papua-batasan-lengkapnya#:~:text=Daftar%20Harga%20Rumah%20Subsidi%202025%20Berdasarkan%20Wilayah,Seluruh%20wilayah%20Papua:%20Rp240%20juta

Interested in Subsidized Housing? Understand the Concept and the Rules First!

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