The 3 Million Houses Program gained major momentum as the Indonesian Real Estate Developers Association (REI) declared its full support during its 53rd anniversary celebration in East Kalimantan.
The event, held from May 14 to 16, brought together 1,000 REI members from 38 regional chapters across Indonesia. More than a celebration, the gathering marked REI’s unified pledge to accelerate affordable housing and support the development of the new capital city, Nusantara (IKN).
REI’s Commitment to the 3 Million Houses Program
REI Chairman Joko Suranto emphasized the association’s readiness to participate in the government’s strategic programs, particularly the 3 Million Houses initiative.
“REI is ready and always present to support government programs, not only by building subsidized housing for low-income communities (MBR) but also in developing areas such as new townships, industrial zones, and special economic zones (SEZ), including tourism-supporting areas,” he said as reported by Kompas.com.
Joko noted that the theme “Propertinomic for the Success of the 3 Million Houses Program” is more than a slogan. It reflects a strategy that positions the property sector, especially housing, as a powerful economic lever. He stated, “Support for the property sector, especially housing, is believed to awaken the ‘sleeping giant’ of the industry. This sector is not only labor-intensive but also closely linked to 185 other industries in the real sector.”
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Propertinomic: Housing as an Economic Engine
REI introduced the term Propertinomic to underscore the role of housing as a driver of national economic growth. The property sector currently contributes 14 percent to the national GDP, 9 percent to the state budget, and 35 to 55 percent of regional revenue.
Beyond fiscal impact, the sector absorbs 14 to 17 million workers, reduces poverty by 8 percent, and holds vast potential in decreasing stunting rates across Indonesia. These figures highlight the broader social and economic value of sustained housing development.
East Kalimantan Property Sector Attracts Investment
East Kalimantan emerged as a focal point for REI’s housing commitment. Its strategic location and its role as home to the future capital city make it a prime area for real estate expansion. REI encouraged developers to seize the moment and invest in the East Kalimantan property sector, which is poised for rapid growth.
The region’s current population of 4 million is projected to rise significantly. With the development of Nusantara, the new capital is expected to bring in 650,000 to 1 million new residents. By 2045, the province’s population could reach 6.5 million.
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Government Incentives Encourage Affordable Housing Development
The East Kalimantan Provincial Government actively supports this momentum. Deputy Governor Seno Aji said, as reported by Detik.com, “We’re offering tax relaxation incentives, such as BPHTB (Land and Building Rights Acquisition Duty). And for homebuyers, we’re waiving administrative fees, especially for low-income households.”
He added that the province had sent letters to mayors and regents across the region, urging policies that align with housing acceleration targets. These include simplified building approval permits (PBG) and BPHTB exemptions to make property development more feasible.
Seno also called on developers to invest in housing projects across East Kalimantan. The government’s incentives and the region’s projected population growth create ideal conditions for affordable housing development.
Strengthening Real Estate Investment in Indonesia
The alignment between REI and the East Kalimantan government marks a crucial step toward strengthening real estate investment in Indonesia. With proactive policies, developer commitment, and growing housing demand, the momentum behind the 3 Million Houses Program is undeniable.
As East Kalimantan prepares to host the new capital, opportunities for long-term real estate investment in Indonesia continue to expand. Developers and stakeholders who act now will play a vital role in shaping the nation’s future housing landscape.
Source: kompas.com, detik.com
Image: BP Tapera Documentation