TEMPO.CO, Jakarta - President Prabowo Subianto has committed to providing affordable housing credit schemes for workers. He stated that the initiative aims to enable workers who have previously been renting to own their own homes.
The Gerindra Party Chairperson said he will provide flexibility in housing installment periods for workers. He noted that installments could potentially be extended over a period of 40 years.
"If the installment can be for 20 years, and if not, then 25 years; if it is not fully paid off in 25 years, then 30 years. If it's not possible, then 35 years, and even 40 years," said Prabowo while attending the International Labor Day or May Day celebration at the National Monument (Monas), Jakarta, on Friday, May 1, 2026.
He stated that a portion of workers' wages is currently used for rent. Prabowo estimated that workers often spend up to 30 percent of their income on housing rentals.
Therefore, Prabowo intends to introduce a housing installment scheme that does not exceed current rental costs. This would allow workers to reallocate their existing rent budget toward owning a home.
Prabowo expressed confidence that workers will remain committed to paying installments for up to 40 years. "Because workers cannot just disappear. Farmers and fishermen cannot just disappear," he said.
In addition, Prabowo highlighted that low-income individuals often face incredibly high interest rates when borrowing money. "The interest rates are ridiculously high. Right? When ordinary people borrow money, the interest can reach up to 70 percent per year," he said.
Therefore, Prabowo mentioned that he has instructed state-owned banks to disburse cheaper loans to the public. "A maximum [loan interest] of 5 percent per year," said the former Minister of Defense.
On the same occasion, Prabowo expressed his desire to build new cities for workers. He promised that these cities would be developed with an integrated concept and located close to industrial areas.
Prabowo stated that the need for housing is a key aspiration conveyed by labor groups. "I have already planned that we will build new cities; each city may consist of 100,000 houses or 100,000 apartment units," he said.
These new cities will not only focus on residences. Prabowo said they will also be equipped with various supporting facilities such as schools, hospitals, sports centers, and childcare facilities.
He also emphasized the importance of adequate transportation access so that workers can easily commute. The government, he said, could provide transportation modes such as trains or public buses at affordable costs specifically for workers.
Prabowo stated that the government has built 350,000 affordable homes to date. His target is to reach 1 million homes within this year. "And these houses, as per your suggestion, will be built in clusters near industrial areas, close to workplaces," said Prabowo.
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