Ministry of Housing and Residential Area Drafts Regulations on PSU Assistance for Low-Income Communities

The Ministry of Housing and Residential Area (“PKP”) is currently drafting regulations on assistance for the development of Infrastructure, Facilities, and Utilities (“PSU”) for housing intended for low-income communities (“MBR”). Johnny Rakhman, Associate Engineer at the Directorate-General of Residential Area of the Ministry of PKP, said this policy aims to provide legal and technical certainty in the provision of PSU assistance as an incentive for developers building homes for MBR.

“This PSU assistance is provided to stimulate the construction of homes for MBR by developers and to support the achievement of the 3-million-home program,” said Johnny.

Johnny explained that the draft regulation will specifically outline the types of PSU assistance provided, as well as housing requirements and the application mechanism. The assistance targets the construction of single-family homes, apartment buildings, and residential areas. The components of the assistance will be tailored to the type of housing being built.

The provision of this assistance, Johnny continued, will take into account housing readiness criteria. He said that housing projects proposed to receive PSU assistance must meet minimum criteria for capacity and construction progress.

“In addition, more than fifty percent of the housing capacity must be allocated for MBR,” he said.

Johnny noted that this regulation is in the final stages of development and could be promulgated soon.