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Addressing Indonesia’s Housing Crisis: Minister Urges BTN to Resolve 12.7 Million House Shortage

Jakarta

Minister of State-Owned Enterprises (BUMN), Erick Thohir, asked PT Bank Tabungan Negara (Persero) Tbk or BTN to resolve the backlog or lack of housing supply in Indonesia, which has now reached 12.7 million houses. It is hoped that its presence can be a solution for housing for young people in the future.

Erick Thohir said that housing challenges for Indonesian people will be greater in the future. This is because as much as 52% of Indonesia’s population now lives in urban areas and it is estimated that this will increase to 70% by 2035.

“When we talk about BTN being a solution for future housing for young people in the future, this really has to have a big strategy. 800,000 houses are not enough today. Now today’s backlog needs are 12.7 million (houses),” he said Erick Thohir at the 74th btn Anniversary Festival 2024 at the Indonesia Arena Gelora Bung Karno (GBK), Jakarta, Sunday (3/3/2024).

According to him, financing the next 1-1.5 million houses must be a breakthrough. Erick Thohir is optimistic that BTN has the capability to achieve this target.

This can be seen from BTN’s performance which has continued to increase in the last few years, both in terms of assets and decreasing non-performing loans. From a profit of only IDR 200 billion in 2019, it has now reached IDR 3.5 trillion in 2023.

“The challenge was a struggle, 12.7 million houses is a number that we must continue to do. I also entrust it to the directors and commissioners to really build a solution ecosystem between BTN, Perumnas and the government to start building houses so that millennials can own homes,” he said .

“The ecosystem solution for building housing in big cities is a challenge in itself,” he added.

(aid/rrd)

2024-03-03 15:09:53
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