Regulations
The mass mortgage signing ceremony on July 30 came as the government attempts to revive housing distribution in spite of the mounting challenges facing Prabowo's "3 million homes" program, including slower disbursements, rising construction costs and weaker spending power amid unwavering demand.
Newly built houses stand in pristine rows on Jan. 7, 2026, at a subsidized housing complex in Rajeg district, Tangerang, Banten. (Antara/Putra M. Akbar)
President Prabowo Subianto held a mass signing ceremony on Thursday for 62,000 subsidized housing mortgages and Rp 880 billion (US$48.7 million) under the Housing Credit Program (KPP), even as developers warn that rising construction costs, lengthy licensing processes and weakening purchasing power continue to weigh on housing supply.The ceremony in Batang, Central Java, comes as the government steps up efforts to revive housing distribution after loan disbursements slumped in the first half of 2026.
Two similar events were held last year for 26,000 housing units in September and for 50,030 units in December. On those occasions, the President said the government was exploring more innovative ways to accelerate housing development by studying successful models from other countries.
