The Government Has Issued A Joint Decree To Expedite The Construction Of Three Million Houses

Foto: Humas Kemendagri

The Government Has Issued A Joint Decree To Expedite The Construction Of Three Million Houses

Wednesday, 27 Nov 2024

The government has issued a Joint Decree (SKB) aimed at expediting the construction of three million homes for low-income communities (MBR). This decree has been signed by the Minister of Home Affairs, the Minister of Public Works, and the Minister of Housing and Settlements.

Signed on Monday, November 25, 2024, the SKB includes several provisions, such as the exemption from the Land and Building Acquisition Tax (BPHTB) and the fees for Building Construction Approval (PBG).

Minister of Home Affairs, Tito Karnavian, stated that the program can be implemented by reducing construction costs. "We have identified several measures that can alleviate construction expenses, thereby accelerating the execution of this program," he remarked.

According to Tito, the BPHTB and PBG fees are collected by local governments in accordance with Law Number 1/2022. These fees can be waived for the benefit of MBR as stipulated in Article 44 of the law.

Furthermore, Article 33, paragraph 1 of Law Number 6/2023 mandates that both central and local governments must facilitate business licensing, particularly for legal entities proposing housing development plans for MBR.

Consequently, the Minister of Home Affairs has instructed all regional leaders to promptly establish regulations regarding the elimination of BPHTB and PBG fees. The clear objective is to support the acceleration of the three million housing program.

The Minister indicated that discussions have already taken place with governors, regents, mayors, and members of provincial and district/city legislative bodies. "Everyone has agreed to support this program," he stated.