Ministry of PKP Prepares Regulations on the Availability of Housing Land in Urban Areas

The Government, through the Ministry of Housing and Residential Areas (“ PKP ”), is preparing regulatory measures to address the availability of housing land in urban areas. These measures are intended to accelerate the implementation of the one-million-housing development program in urban regions.

“We indeed require a mechanism for acceleration, as urban areas face numerous issues related to land availability, which are inherently very complex. This is why we are currently designing the necessary regulatory framework, potentially in the form of a Presidential Regulation or a Government Regulation, which we are in the process of preparing,” stated the Deputy Minister of PKP, Fahri Hamzah.

The regulation is intended to address the complexity of land-related issues in urban areas, where land is becoming increasingly scarce and expensive. In addition, the Ministry of PKP has proposed the establishment of a special institution to accelerate national housing development, which would assume responsibility for matters ranging from land permitting to financing. This initiative is being coordinated with the Ministry of Administrative and Bureaucratic Reform (PANRB) and the Ministry of State Secretariat, as well as the Danantara Management Agency (BP Danantara), particularly in relation to land provision and the development of the transit-oriented development (TOD) concept.

“Thus far, these authorities have been dispersed across multiple institutions. Land matters are handled by one entity, permits by another, and financing by yet another. There must be an institution that consolidates all of these,” he stated.