Proposed Concept of Integrated Agricultural and Coastal Housing

Secretary General of Real Estate Indonesia (“REI”), Raymond Ardan Arfandy said that there is a problem in the 3 million housing program, namely that rural and coastal communities do not meet the requirements to obtain credit.

Rural and coastal communities are farmers and fishermen, they have non-bankable status. This means that they do not have files or archives to meet bank requirements. Indeed, studies are still needed so that they can be financed by banks,” he told Hukumonline.

REI proposed that the government create a concept for integrated agricultural and coastal housing. Namely a business ecosystem that creates an agricultural or coastal area that is cultivated by farmers or fishermen with a profit-sharing system.

“When we harvest, we share the results with the farmers. They save the results. Maybe after 3-4 harvests, it can become (a financing requirement) for residential homes. That involves the private sector to work on agriculture, automatically the capital is not from the APBN,” Raymond explained. “Meanwhile, the government’s role is to prepare seeds, fertilizers, agricultural/fishery tools and machines, and extension workers.”