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The Development of Subsidized Houses in West Papua

For the welfare of Indonesian citizens evenly in various regions in Indonesia, the Indonesian government intends to build around 1,000 houses for those who live in Papua. Check out more information about subsidized houses in West Papua as follows.

Subsidized Housing Developments in West Papua

Subsidized Houses in West Papua

The following is information about plans and developments for housing construction in Papua.

Plan & Target

The subsidized houses were intended for KORPRI (Indonesian Civil Service Corps), ASN (civil servant), and P3K (government employees with work agreements). The houses would be built on 60 hectares of land.

However, the government and the developer agreed that the construction of more house units would be for all people interested in applying for loans for government-subsidized housing.

The developer planned the construction of houses at around 80 location points in West Papua. Some of them are Sorong Regency, Manokwari Regency, Teluk Bintani Regency, and so on.

Additionally, in the construction of houses, of which 90 percent are subsidized housing units, and 10 percent are non-subsidized housing units, there are 16 developers involved. They’re from several districts in Papua. 

2021

The construction of subsidized houses in West Papua starts in 2021. The government itself helped to make the construction of subsidized housing faster. One of them is taking an active and responsive role regarding licensing issues for developers.

In the early stages, the government built around 350 subsidized housing units. The units of house type 36 are on a land area of 135 m2. This type of house has 2 bedrooms. 

Additionally, the government will also build type 45 non-subsidized houses for echelon officials.

2022

As of August 2022, based on information from the chairman of the DPD REI, Julius Lois, related parties have succeeded in building around 700 housing units, with 600 units having been sold. 

Meanwhile, based on the latest developments, Julius added that his party would try to complete the development and marketing process in the last quarter of 2022. 

In the middle of the construction process, the government added that 1,200 housing units would be successfully built for all those who intend to buy a house in West Papua. 

The addition of this target number is not without reason. The developer believes that the addition of this number takes into account the recent decline in the Covid-19 pandemic.

The Developer’s Selling Plan 

Subsidized Houses in West Papua

The management plans to do marketing by holding an expo. Thus, people can see the subsidized housing that the developers offer. They were holding the housing Expo on August 26-27, 2022.

People who intend to buy subsidized housing can apply for subsidized housing loans (KPR) through the Bank Tabungan Negara (BTN), Bank Mandiri, Bank Negara Indonesia (BNI), Bank Rakyat Indonesia (BRI), or by contacting the nearest developer’s office.

Julius is optimistic that they can achieve the sales target of 1200 units in 2023 even though in 2022, there was quite a drastic decline in sales figures.

Obstacles to Selling Subsidized Houses in West Papua

Subsidized Houses in West Papua

Julius has expected that the decline in housing unit sales may have several causes. 

1. Covid-19 Pandemic

First, the Covid-19 pandemic, which has been going on for approximately 2 years and has greatly affected the community’s economy, has impacted people’s purchasing power for houses.

2. Demographic Conditions

Another obstacle is the demographic conditions in West Papua Province. This province only has around 1.13 million people, with Manokwari district, which only has around 200 thousand people.

In fact, according to Julius in his speech at the third REI West Papua Regional Conference, to support the sale of affordable housing, an area should ideally have 500 thousand inhabitants. That way, the property business in the region can develop.

3. Policies and Regulations

In addition, several policies & regulations from the government received support from banks related to the development of subsidized housing for low-income people. 

Therefore, the developer needs more time because there are several locations to build subsidized houses in West Papua. They must inspect the location and ask for the construction permits documents.