OVERVIEW

As one of our most basic needs, the ownership of property is hugely important to Indonesians, be it in the form of houses or apartments. However, rapid, year-on-year increases in the value of property have resulted in lower-purchasing power for the middle-to-low income brackets of the population. This in turn means that due to low creditworthiness, it is difficult for this segment to obtain loans or financing facilities from financial-service institutions.

In order to ease this problem, President Joko Widodo has committed the government, through the issuance of his 13^th Economic Policy Package, to providing affordable housing for Indonesians, in particular for the mid-to-low income bracket. In order to achieve this goal, the Ministry of Public Works and Public Housing (“Ministry of PUPR”) has launched the 1 Million Houses Program[1] and has also cut back on unnecessary and troublesome red tape, so that property developers can go about their business more easily.[2]