Home Subsidy Dilemma: Developers Win, Low-Income People Suffer

The increase in subsidized housing prices shortly will bring complications for buyers, especially for the low-income society (MBR).

Yanita Petriella

23 Jun 2023 - 02.42
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Home Subsidy Dilemma: Developers Win, Low-Income People Suffer

Illustration - Residents across subsidized housing construction projects./Bisnis-Arif.

Bisnis, JAKARTA – The increase in subsidized housing prices shortly will pose complications for buyers, especially those from low-income societies (MBR).

Subsidized housing is only available to households with a specific income range. For married couples, the upper-income limit is between IDR8 million to IDR10 million per month, based on zoning, while for single individuals seeking their first house, the limit is IDR 7 million. Individuals with higher incomes are not eligible to own subsidized housing.

Subsidized housing has been a popular choice for homebuyers within a certain income bracket. These buyers receive government assistance to acquire housing at a much lower rate compared to commercial housing, which is why the prices of subsidized housing are controlled by the government.

With the increased prices, low-income individuals will have to tighten their belts to pay monthly mortgage installments.

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