Indonesia pushes Perumnas to expand offtaker role in tackling 9.29 million housing backlog

Ministry urges Perumnas to boost offtaker role, cut backlog

Deputy Minister of Housing and Settlement Areas Fahri Hamzah has called on state housing developer Perumnas to expand its role as a national housing offtaker, aiming to accelerate supply and tackle Indonesia's persistent housing backlog of 9.29 million households.

Speaking at the groundbreaking ceremony for the Samesta Alonia subsidized housing tower in Jakarta on Friday, Hamzah emphasized that Perumnas holds a unique mandate beyond conventional state-owned enterprises. The company, established in 1974 through Government Regulation No. 29/1974 to provide affordable housing for low- and middle-income citizens, is legally positioned not only to build homes but to serve as an offtaker within the national housing ecosystem.

"Perumnas itself is not an ordinary SOE. It is still a state company, but it is actually mandated not only to build houses but also to serve as a housing offtaker. The government regulation on Perumnas literally states that Perumnas is an offtaker. So without an offtaker, it is difficult for us to build."

Addressing the housing crisis

Indonesia's housing backlog has decreased from 12.75 million households in 2020 to 9.29 million in 2026, representing a decline of 3.46 million units over six years. However, the challenge remains significant, particularly in urban areas where Jakarta records the highest provincial backlog at 40.59% of households not owning homes, compared to the national average of 13%.

The nation requires approximately 800,000 new housing units annually to meet demand as 700,000 to 800,000 new households form each year. To support these efforts, the government allocated Rp 58 trillion from the 2026 state budget for housing programs.

Hamzah explained that an offtaker provides essential demand certainty for the housing sector, encouraging contractors and developers to expand construction. He compared Perumnas' intended role to that of state logistics agency Bulog in the food sector, which procures rice from farmers to manage government food reserves, meet disaster needs, and supply affordable food while ensuring producers face no uncertainty before increasing production.

Revitalizing historical role

During Indonesia's New Order era, the national housing system rested on three pillars: a dedicated ministry for public housing, mass housing development by Perumnas, and financing support from state bank BTN. These pillars have since weakened, diminishing Perumnas' role in the housing sector.

In September 2025, President Prabowo Subianto directed that Perumnas be re-empowered to lead Indonesia's 3 Million Homes Program, positioning the company at the forefront of affordable housing efforts. Under this offtaker model, Perumnas will purchase completed housing units from private developers and contractors to ensure homes reach intended beneficiaries and align with social housing goals.

The company has prepared 1,575.64 hectares of land with potential to support construction of 151,152 housing units across Indonesia, including five locations in Greater Jakarta such as Kemayoran and Pulo Gebang.

"So that people do not get scattered and move out of the cities, especially young people, many of whom work in urban areas,"

Hamzah said, expressing hope that strengthening Perumnas' offtaker function can be discussed with the State-Owned Enterprises Management Agency, Danantara, and the Ministry of Finance.

The groundbreaking event was attended by Commission VI member Rizal Bawazier, Acting President Director of Perumnas Imelda Alini Pohan, Minister of National Development Planning Rachmat Pambudy, Deputy Head of BP BUMN Tedi Bharata, and Chairman of the Perumnas Supervisory Board Khalawi Abdul Hamid.