The Government Is Preparing Affordable Housing For Generation Z, With The Following Installment Plans

Foto: Muhammad Luthfi Rahman

The Government Is Preparing Affordable Housing For Generation Z, With The Following Installment Plans

Monday, 02 Dec 2024

Generation Z, or Gen Z, is anticipated to face greater challenges in acquiring homes compared to previous generations. The economic situation following the pandemic is cited as a significant factor affecting Gen Z's ability to own property.

In response to this issue, the government is preparing to construct housing through a program aimed at delivering 3 million homes. The Deputy Minister of State-Owned Enterprises, Kartika Wirjoatmodjo, stated that efforts will also be made to create financing schemes for young generations.

Affectionately known as Tiko, he revealed that they are developing a Liquidity Facility for Housing Financing (FLPP) scheme for long-term loans of up to 30 years. "We are considering the FLPP scheme and other long-term credit options, potentially with terms extending to 30 years, which will ideally start with very low installments," he remarked in Jakarta on Friday, November 29.

Tiko expressed hope that through this scheme, Generation Z would be able to purchase their dream homes with manageable payments. "It is understood that for Gen Z to enter the housing market, their purchasing power ideally aligns with the Low-Income Community (MBR) category, with installments below 2 million, and ideally even under 1 million," he explained.

Furthermore, efforts are being made to address housing development costs and loan expenses in areas outside major urban centers to minimize these costs as much as possible.

"From a construction perspective, I believe you are all familiar with our ecosystem, including various companies involved in construction, cement, and so forth. We are also collaborating with Telkom to provide fiber optic networks and with PLN for direct electricity access," he elaborated.

Tiko hopes that these housing projects will be equipped with the best possible facilities. In fact, in areas with limited gas supply, there may be connections to PLN's gas network.