Flooring Guide by Cinvex – JAKARTA — The Minister of Housing and Public Works (PKP), Maruarar Sirait (Ara), is urging developers of subsidized housing to proactively seek capital through the stock market by conducting Initial Public Offerings (IPOs).
Minister Sirait emphasized that this move to list on the stock exchange is proposed to meet the substantial capital requirements of developers, essential for supporting President Prabowo Subianto’s ambitious target of providing 3 million homes.
“We also discussed capital markets, so that financing doesn’t exclusively have to come from banks. This way, developers will have more options [for capital acquisition],” he explained at the Ministry of PKP office on Friday, October 24, 2025.
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Responding to the minister’s call, the Secretary-General of the Association of Indonesian Housing and Settlement Developers (Apersi), Deddy Indrasetiawan, highlighted that market certainty for subsidized housing is a critical component for developers to successfully raise capital from the stock market.
Deddy elaborated that currently, the absorption of subsidized housing is frequently hampered by banking financing issues. Many community members face rejection for Home Ownership Credit (KPR) applications due to unfavorable records within the Financial Information Services System (SLIK).
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This challenging situation is a concern, as it could deter investors from purchasing shares of subsidized housing developers in the future. Therefore, Deddy stressed the necessity of first implementing the PKP Minister’s proposed plan to write off non-performing loans.
“The current challenge is indeed [demand absorption], but hopefully, the PKP Minister, along with Mr. Purbaya, the Minister of Finance, can erase SLIK records for [problematic credit] below Rp1 million,” he stated, expressing optimism.
At the same time, Deddy affirmed that the proposal for developers to actively seek capital through the stock market is timely, as it is considerably more cost-effective compared to borrowing capital from banks.
“Once we’ve gone public [IPO], if we need more capital, we can simply conduct a rights issue. This is actually the cheapest form of capital compared to developers using bank credit. That’s how it truly works,” he concluded, outlining the financial advantages.
Government Considers Bad Loan Write-Off to Boost Subsidized Mortgages
Earlier, PKP Minister Maruarar Sirait confirmed that he has coordinated with the Ministry of Finance (Kemenkeu) to discuss the write-off of non-performing loans for the public.
Ara clarified that the proposal for a bad loan write-off aims to enhance access to banking financing, particularly for low-income communities (MBR).
“Now, how can there be a strategic step? If necessary, I propose considering a write-off for small-scale borrowers who are hindered by OJK’s SLIK, up to a certain value. Because this helps the people, allowing them to register for subsidized housing and apply for credit,” Ara explained.
Minister Sirait reported that he has secured approval from the Minister of Finance, Purbaya Yudhi Sadewa, and is scheduled to meet with the Financial Services Authority (OJK) in the near future to finalize these plans.
Concurrently, Minister Purbaya mentioned that he has instructed BP Tapera to collect data on prospective mortgage debtors currently facing obstacles due to their credit history.
Initial assessments indicate that the bad loan write-off will be extended to individuals with loans amounting to a maximum of Rp1 million.
“I will meet with the OJK soon. So, I inquired next Monday if it’s true there are over 100,000 such individuals. The BP Tapera Commissioner confirmed over 100,000, meaning if the write-off applies to those under Rp1 million,” he elaborated, detailing the scope and next steps.
Summary
The Minister of Housing and Public Works, Maruarar Sirait, is urging subsidized housing developers to conduct Initial Public Offerings (IPOs) to raise capital from the stock market. This initiative aims to support President Prabowo Subianto’s target of providing 3 million homes and offers an alternative financing source to traditional bank loans. The Association of Indonesian Housing and Settlement Developers (Apersi) agrees on the cost-effectiveness of IPOs but emphasizes that market certainty is crucial for success. Currently, a significant challenge is the low absorption of subsidized housing due to potential buyers being rejected for Home Ownership Credit (KPR) applications because of unfavorable financial records.
To address this obstacle and enhance market certainty for developers, Minister Sirait has coordinated with the Ministry of Finance to discuss writing off non-performing loans, specifically those under Rp1 million. This measure is intended to clear problematic credit records within the Financial Information Services System (SLIK), improving low-income communities’ access to KPR. The Minister of Finance has approved this proposal and instructed BP Tapera to collect data on affected individuals. Further meetings are scheduled with the Financial Services Authority (OJK) to finalize the implementation of this plan.