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Home Indonesia

Indonesia’s 3 mln housing plan to boost cement demand

WNAM: by WNAM:
February 3, 2025
in Indonesia
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Indonesia’s 3 mln housing plan to boost cement demand
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WNAM REPORT: The Indonesian government’s plan to build 3 million houses annually is expected to increase the demand for cement and help address the excess supply of cement in the country.

This was stated by the special envoy for climate change and energy, Hashim Djojohadikusumo, on Sunday.

He affirmed that implementing the housing program is a priority for the government under President Prabowo Subianto.

“As long as Mr. Prabowo leads, the housing program will continue,” said Hashim, a younger brother of the president.

He said that the program is not only aimed at providing housing for the people but also serves as a stimulus to support national economic growth, given its economic multiplier effect that can boost public consumption.

“We have secured a commitment from Qatar to finance 4 million to 6 million housing units,” Hashim said.

Indonesia has also agreed on bilateral cooperation with the UAE to build 1 million houses, he added.

“Not to mention interest from China, Turkey, India, Singapore, and other countries,” Hashim stated.

He added that all of these collaborations will stimulate 185 economic sectors related to housing, including the cement industry.

Minister of Housing and Settlement Areas Maruarar Sirait previously stated that the 3-million-housing program has begun attracting foreign investors, though significant effort is still needed to finalize partnerships.

He explained that the housing budget plan for 2025 is Rp5.07 trillion (over US$311 million), including Rp1.2 trillion for the development of Nusantara, Indonesia’s new capital in East Kalimantan.

He said that President Prabowo had instructed him to optimize state assets, including land confiscated in corruption cases, to build housing for low-income individuals under the housing program.

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