The World Bank Executive Directors Agency has approved a USD 450 million funding to support the Indonesian government in expanding the affordable housing program for lown-income people. The approval was signed on March 17, 2017.
Chief Representatives of the World Bank for Indonesia Rodrigo Chavez, said that some of the funds will be channeled to support the Indonesian government’s Saving-Based House Financing Assistance (BP2BT) scheme intended for low-income households.
The BP2BT scheme provides down payment assistance calculated by the amount of savings of the beneficiary. In addition, the scheme also provides installments based on market standards applied by financial institutions participating in the program.
Chavez added that the funds will also support the Sustainable Housing Stimulant Aid (BSPS) for 40 percent of underprivileged households in Indonesia.
“Indonesia is taking a major step forward through the program to ensure that low-income families can have decent, safe, and affordable house,” Chavez said in a written statement on Monday, March 20, 2017.
Chavez asserted that providing access to affordable houses is important to improve welfare and eradicate poverty.
“Better housing has proven to bring positive effects to public health, education, and labor achievement,” Chavez said.
Furthermore, Chavez stated that the funding will also support the Indonesian government’s effort in accelerating policy and institutional reform aimed at improving property market fundamentals.