Housing in Indonesia is set to become more affordable for the population
The Indonesian government is actively implementing the country’s development strategy. One of its points is to increase supply in the property market. According to the programme, the government plans to build 15 million new homes over the next 5 years. This means that developers will create 3 million housing units per year. This will make housing in Indonesia more affordable.
Increased supply in the housing market will help improve the living conditions of Indonesian citizens. Today, people in many parts of the country lack access to essential services such as electricity and clean water. The new homes are expected to help improve living standards. Under the programme, 1 million homes will be built in urban areas and 2 million in rural areas each year. The programme will also increase the number of jobs, which is particularly important for rural areas.
The implementation of the housing programme is an ambitious task for Indonesia. Its successful implementation will be influenced by many factors, including:
– adequate funding;
– land acquisition;
– procurement of building materials;
– obtaining permits;
– a well-designed system of subsidies.
These aspects require careful planning and coordination between different authorities to achieve the desired outcome. The programme is intended to help address the housing shortage, which currently stands at 12.7 million units.
Other steps in Indonesia development
Another element of Indonesia’s development strategy is the Golden Visa programme. It became available in July 2024. In three months, 500 applications came in, and the number continues to grow. The main aim of the programme is to increase foreign investment in the country’s economy.
To be approved, an applicant must invest US$25 million in the local market. An alternative is to have US$700,000 in savings.
Benefits of obtaining a Golden Visa:
– the opportunity to stay in the country for 10 years;
– priority in applications to various government agencies;
– easier access to international airports;
– there is no need for ITAS approval.
There are different categories of Golden Visa holders, depending on the purpose of their residency. These include property buyers and people whose ancestors have lived in the country. Indonesia is also keen to attract skilled workers and talent who have their visa requirements.
Another method of attracting foreign capital is through tourism. Bali remains the leading tourist destination, but the authorities are keen to develop other resorts. The island of Nusa Penida, for example, could soon become a high-end luxury resort.