Indonesia’s Ministry of Housing and Settlement Areas (PKP) has unveiled a strategic Rp10.89 trillion budget for 2026, signaling a major push toward inclusive urban development. With rising allocations for vertical housing, slum rehabilitation, and disaster-resilient homes, the government aims to close the housing gap and improve living standards nationwide. The initiative reflects President Prabowo Subianto’s directive to prioritize people-centered infrastructure.
Key Facts & Background: In 2026, PKP will allocate Rp375.32 billion for 796 units of public flats (Rusun), and Rp249.43 billion for 654 special housing units, including post-disaster recovery and RISHA panel reserves. Infrastructure support (PSU) for 2,007 units receives Rp29.08 billion, up 40.78% from 2025. Slum and sanitation programs will cover 225 hectares and 3,000 units, backed by Rp155.85 billion—an increase of 77.82%. Management support totals Rp981.90 billion for 3,791 staff and 60 operational units. The ministry also plans to launch 25,000 subsidized homes in September and hold mass mortgage signings for 50,000 units in November.
Strategic Insights: The expanded housing budget reflects a shift from piecemeal interventions to systemic urban transformation. Prioritizing vertical housing and slum upgrading aligns with Indonesia’s long-term goals of sustainable urbanization, disaster resilience, and social equity. The significant rise in PSU and sanitation funding suggests a growing recognition of housing as a public health and infrastructure issue. By integrating housing with employment, disaster recovery, and urban planning, the PKP’s 2026 agenda positions shelter as a cornerstone of inclusive development. If executed effectively, these programs could reduce the national housing backlog and catalyze local economic growth.