Jakarta – Chief Presidential Staff Muhammad Qodari has asserted that the ambitious 3 Million Homes Program, initiated by President Prabowo Subianto, is poised to significantly invigorate the national economy and generate substantial employment opportunities. Qodari articulated that the program’s scope extends beyond merely providing decent housing; it is strategically designed to act as a primary engine for national economic advancement through a robust multiplier effect across a diverse array of sectors.
Qodari highlighted the program’s intrinsic value in connecting upstream to downstream industries within the national economic ecosystem. "As sectors that are both labor-intensive and capital-intensive, housing development does not operate in isolation. The execution of the 3 Million Homes Program triggers a chain reaction and a multiplier effect that propels the economic wheels from micro-enterprises to large corporations," Qodari stated during a press conference on the update of the Fast Track Best Results Program (PHTC) and preparations for the 2026 Hajj pilgrimage, held at the Bina Graha Building, Merdeka Palace Complex, Jakarta, on Wednesday, April 15, 2026.
The strategic vision behind the program emphasizes its capacity to stimulate demand across domestic supply chains. Qodari elaborated that the construction of housing units directly impacts approximately 185 derivative industries. This includes essential sectors such as cement, light steel, ceramics, and various other building materials. Furthermore, the ripple effects extend to the furniture industry, home electronics, interior design services, and crucially, the financial services sector through the facilitation of mortgage loans (KPR).
Employment Generation: A Core Pillar of the Program
A significant aspect of the 3 Million Homes Program lies in its ability to create employment. The housing construction sector is recognized for its efficiency in absorbing labor within a relatively short timeframe. Qodari pointed out that the development of a single housing unit typically involves an average of five to seven workers, encompassing both direct and indirect employment. This translates into a wide spectrum of job opportunities, ranging from skilled professionals like architects and engineers to construction workers and individuals in the informal sector, such as local vendors operating in proximity to project sites.
"This program has fostered a new economic ecosystem that opens up real job opportunities for the community, including architects, engineers, construction workers, and informal sector workers such as traders around project locations," Qodari affirmed. This comprehensive job creation strategy aims to uplift communities and provide sustainable livelihoods.
Stimulating Local Economies and Supply Chains
Beyond direct job creation, the program is designed to foster economic growth at the local level. Qodari emphasized that the development of housing projects encourages developers to prioritize local material sourcing to mitigate logistics costs. This strategic procurement practice directly stimulates regional economic growth.
"The circulation of transactions for materials and services at the local level will directly impact the increase in local taxes and levies," Qodari explained. This localized economic activity ensures that the benefits of the program are distributed more widely within communities, supporting small and medium-sized enterprises (SMEs) and generating revenue for regional governments.
A tangible example of this impact can be observed in the "gentengisasi" (roof tile replacement) program in Jatiwangi. This initiative has demonstrably absorbed tens of thousands of products from local SMEs, thereby strengthening the economic base of the community. Such localized successes underscore the program’s potential to create a virtuous cycle of economic development.
Addressing the Housing Backlog and Enhancing Living Standards
Concurrently, the government remains steadfast in its commitment to improving the quality of life for its citizens. The 3 Million Homes Program is intrinsically linked to the provision of adequate, safe, and healthy housing. This initiative aims to address the substantial housing backlog, which affects approximately 9.9 million families who currently lack homeownership, and to improve the conditions of around 26.9 million substandard housing units.
President Prabowo Subianto, through the Ministry of Housing and Public Works, intends to leverage state assets and underutilized land to benefit the public, particularly in supporting the provision of decent and affordable housing. "The President, through the Ministry of Housing and Public Works, plans to utilize state assets and land that is not yet optimally utilized for the benefit of the people, especially to support the provision of decent and affordable housing for the community," Qodari stated. This proactive approach to land utilization signifies a commitment to maximizing public welfare.
Policy Reforms to Accelerate Housing Development
To expedite the realization of the 3 Million Homes Program, the government is implementing a series of supportive policies. These include a 0% exemption on the Land and Building Acquisition Duty (BPHTB) for Low-Income Communities (MBR), the abolition of Building Permit (PBG) fees for MBR, and a significant acceleration of the permitting process from a maximum of 28 days to just 10 days.
"The abolition of Building Permit (PBG) fees for MBR and the acceleration of the permitting process from a maximum of 28 days to only 10 days, is a concrete manifestation of the President’s directive that policies should favor the underprivileged," Qodari emphasized. These policy reforms are designed to reduce the financial burden on prospective homeowners and streamline the development process, thereby encouraging greater participation and faster project completion.
Background and Chronology of the 3 Million Homes Program
The conceptualization and initiation of the 3 Million Homes Program can be traced back to President Prabowo Subianto’s electoral platform, which placed a strong emphasis on addressing the nation’s housing deficit and stimulating economic growth through infrastructure development. The program was officially announced shortly after President Subianto assumed office, signaling a commitment to making housing a national priority.
Key Milestones and Timeline (Inferred):
- Pre-Election Period: Housing affordability and economic stimulus emerge as central campaign themes.
- Early Presidency (e.g., Q1 2025): President Prabowo Subianto formally announces the 3 Million Homes Program as a flagship initiative. Initial policy frameworks and inter-ministerial coordination begin.
- Q2-Q4 2025: The Ministry of Housing and Public Works, in collaboration with other relevant ministries and state agencies, undertakes detailed planning, identifies potential land assets, and engages with developers and financial institutions. Pilot projects may be initiated to test program mechanisms.
- Early 2026: The program gains momentum with the announcement of supporting policies, including BPHTB exemptions, PBG fee abolitions, and accelerated permitting. The press conference on April 15, 2026, serves as a significant update on the program’s progress and future plans.
- Ongoing (2026 onwards): Full-scale implementation of the 3 Million Homes Program is expected, with continuous monitoring and evaluation of its economic and social impacts.
The program’s scale and ambition necessitate a multi-year implementation strategy, with ongoing efforts to secure funding, streamline regulations, and ensure equitable distribution of benefits.
Broader Implications and Analysis
The 3 Million Homes Program, as articulated by Chief Presidential Staff Qodari, represents a sophisticated economic development strategy. By integrating housing construction with broader economic objectives, the government aims to achieve a synergistic effect.
Economic Multiplier Effect: The direct spending on construction materials, labor, and related services generates significant downstream economic activity. For instance, increased demand for cement and steel boosts production in these heavy industries. Similarly, the demand for furniture and home appliances stimulates manufacturing and retail sectors. The provision of KPR loans not only facilitates homeownership but also injects liquidity into the financial system.
Job Creation and Skills Development: The labor-intensive nature of construction offers immediate employment opportunities, particularly for semi-skilled and unskilled workers. This can contribute to poverty reduction and improved living standards for a significant segment of the population. Furthermore, the demand for skilled professionals like architects, engineers, and project managers can spur investment in education and training programs.
Urban and Regional Development: The construction of new housing estates can lead to the development of new urban centers or the expansion of existing ones. This often involves the development of supporting infrastructure, such as roads, utilities, and public services, which can further stimulate local economies. The emphasis on using local materials also supports regional industrial development.
Social Impact: Beyond economic benefits, the program addresses a fundamental human need for shelter. Providing decent and affordable housing can lead to improved health outcomes, enhanced educational attainment for children, and greater social stability. The reduction of the housing backlog and the improvement of substandard housing are critical steps towards achieving greater social equity.
Potential Challenges and Considerations:
While the program holds significant promise, its successful implementation will likely depend on several factors:
- Land Availability and Acquisition: Securing adequate and strategically located land for development can be a complex and time-consuming process. Efficient land use policies and streamlined acquisition procedures are crucial.
- Financing Mechanisms: Ensuring the long-term affordability of housing for low-income groups requires robust and sustainable financing mechanisms, including accessible and affordable mortgage options.
- Quality Control and Standards: Maintaining high standards of construction quality and ensuring that housing units are safe, durable, and environmentally sound will be essential for long-term resident satisfaction and program sustainability.
- Coordination and Governance: Effective coordination among various government agencies, private sector stakeholders, and local communities is paramount to avoid bureaucratic hurdles and ensure efficient program delivery.
- Inflationary Pressures: A large-scale construction program could potentially lead to increased demand for materials and labor, which might exert upward pressure on prices if not managed effectively.
The 3 Million Homes Program, therefore, represents a comprehensive strategy that seeks to achieve multiple developmental objectives simultaneously. Its success will be a testament to the government’s ability to effectively implement complex policies and foster collaboration among diverse stakeholders. The program’s long-term impact will be closely watched as it unfolds, promising to reshape the Indonesian housing landscape and significantly contribute to the nation’s economic and social progress.
