The Regional Board of the Indonesian Real Estate Association (DPD REI) in Banten has officially raised a series of critical concerns regarding the development of subsidized housing, identifying the government’s food sovereignty policy as a primary obstacle to the realization of the ambitious "3 Million Houses" program. During a high-level Halal Bihalal event held in South Tangerang on Tuesday, April 14, 2026, the leadership of REI Banten emphasized that while the national drive for food security is vital, the current implementation of land-use regulations is inadvertently strangling the availability of land for low-income housing.
Roni Hardirianto Adali, Chairman of DPD REI Banten, addressed a gathering of stakeholders, including government officials and banking representatives, to outline the dual pressures facing developers in the province. The central issue revolves around the designation of Lahan Baku Sawah (LBS) or Protected Rice Fields. Under the government’s current mandate to ensure food self-sufficiency, vast tracts of land are being locked into agricultural use, significantly narrowing the options for residential developers who specialize in the subsidized sector.
The Land Availability Crisis and the LBS Conflict
The conflict between agricultural preservation and urban expansion has reached a tipping point in Banten, a province that serves as a vital residential buffer for the Jakarta metropolitan area. According to Roni Adali, the strict enforcement of LBS regulations has created a bottleneck in land acquisition for the "3 Million Houses" program—a flagship initiative of the current administration aimed at reducing Indonesia’s housing backlog, which currently stands at over 12 million units.
To mitigate these challenges, REI Banten has proactively established a dedicated Task Force. This unit is tasked with intensive coordination between relevant ministries, including the Ministry of Agrarian Affairs and Spatial Planning/National Land Agency (ATR/BPN) and local Land Offices (Kantah). The goal is to identify a "middle ground" where food security objectives can coexist with the urgent need for affordable housing.
Data presented by REI Banten reveals a fragmented landscape of land readiness across the province. In the cities of Serang and South Tangerang, as well as the Pandeglang Regency, the resolution of LBS issues is relatively advanced, with approximately 87 percent of the required land already deemed "safe" for development. However, other regions face significant hurdles. In Lebak, particularly the Rangkasbitung area, the process of land conversion remains ongoing. The most severe challenge is currently in Tangerang Regency, where developers are engaged in an "intensive struggle" to secure land permits amidst overlapping agricultural and residential zoning.
Financial Barriers: The SLIK OJK Bottleneck
Beyond the physical limitations of land, REI Banten highlighted a systemic financial barrier that prevents thousands of Low-Income Households (MBR) from accessing subsidized mortgages (KPR). The issue lies within the Financial Information Services System (SLIK) managed by the Financial Services Authority (OJK).
Roni Adali pointed out that many prospective homeowners are being disqualified from housing loans due to minor credit discrepancies, often involving amounts as low as Rp 1 million or less. These "micro-debts," frequently stemming from unpaid telecommunications bills, small e-commerce installments, or administrative errors, result in a negative credit rating that triggers an automatic rejection by lending banks.
"The government’s plan to implement a debt-clearing policy for SLIK records involving amounts under Rp 1 million is a breath of fresh air for the industry," Roni stated. He estimated that this single policy shift could potentially restore the eligibility of up to 80 percent of prospective consumers who were previously blacklisted. This move is seen as essential to boosting the absorption of subsidized housing units, which has stagnated in some areas due to the high rate of loan application rejections.
National Policy and Bureaucratic Implementation
The concerns raised by REI Banten align with recent directives from the national government. The Minister of Housing and Residential Areas (PKP), Maruarar Sirait, has recently emphasized the need for the OJK and the banking sector to expedite the implementation of the SLIK amnesty. Minister Sirait, often referred to as Ara, has been vocal about removing "bureaucratic walls" that prevent the poor from owning homes.
"I hope there are no implementation hurdles, either at the OJK or within the banks," Minister Sirait noted in a separate statement. His sentiment was echoed by Friderica Widyasari Dewi, a member of the OJK Board of Commissioners, who reaffirmed the authority’s commitment to the 3 Million Houses program. The OJK is currently working on a framework that allows for more flexibility in credit scoring for first-time homebuyers, recognizing that traditional credit metrics may not accurately reflect the repayment capacity of the MBR segment.
To further support this, the government has introduced the Tapera Mobile application, which replaced the older SiKasep system on April 13, 2026. This digital transformation is intended to streamline the process for the public to access the Housing Financing Liquidity Facility (FLPP), making the journey from application to approval more transparent and efficient.
Infrastructure and Regulatory Hurdles in Banten
The Halal Bihalal event also served as a forum to discuss localized infrastructure issues. One of the recurring complaints from developers in Banten is the delay in electricity connectivity for new housing clusters. To address this, REI Banten has entered into a proactive partnership with PT PLN (Persero).
Bobby Christya Surya, Senior Manager of Commerce and Customer Management at PLN, has reportedly committed to streamlining the process for REI members. The goal is to ensure that "backlog electricity" does not become a reason for delayed handovers to residents.
Furthermore, a specific regulatory challenge has emerged in Pandeglang Regency involving the involvement of Law Enforcement Agencies (APH) regarding Groundwater Use Permits (SIPA). Some developers have reported feeling pressured or intimidated by legal scrutiny over water usage regulations. Roni Adali urged developers in Pandeglang not to lose heart, promising that DPD REI Banten would provide legal advocacy and mediation to ensure a conducive business environment.
"The DPD REI Banten will step in directly to help. We must ensure that the climate for investment remains stable and that developers are not discouraged by complex local regulations," Roni added.
South Tangerang as a Model for Modern Growth
The Vice Mayor of South Tangerang, Pilar Saga Ichsan, who attended the event, provided a broader perspective on the impact of the real estate sector. He praised the contribution of property developers in transforming South Tangerang into a modern, economic powerhouse. The presence of multinational-scale developers like Sinarmas Land (BSD City), Bintaro Jaya, and Alam Sutera has not only changed the skyline but also the socioeconomic fabric of the region.
Pilar acknowledged that the property industry acts as a catalyst for over 170 related sub-sectors, ranging from construction materials to home furnishings and local services. "The presence of REI in the community is vital. It is not just about business; it is about how developers provide a positive economic impact and assist the local government in organizing the region to be more structured and livable," Pilar remarked.
He noted that the development of modern townships has shifted social behaviors toward more positive, community-oriented living, while also providing the local government with the infrastructure needed to support a growing middle class.
Analysis of Implications: A Path Forward
The situation in Banten serves as a microcosm of the national housing challenge. As Indonesia moves toward 2029 with the goal of eliminating the housing backlog, the tension between land for "food" and land for "shelter" will likely intensify.
Fact-based analysis suggests that if the government does not harmonize the LBS maps with the National Strategic Projects (PSN) for housing, the cost of land will continue to skyrocket, making subsidized housing financially unviable for developers. Currently, the profit margins on subsidized units are razor-thin, and any increase in land acquisition costs or bureaucratic delays can lead to a project’s insolvency.
Furthermore, the "SLIK Amnesty" for small debts is a critical social justice issue. By clearing the credit records of those who have struggled with minor financial hurdles, the government is effectively expanding the middle class and encouraging formal financial participation.
Chronology of Recent Developments
- October 2024: The "3 Million Houses" program is launched as a central pillar of the new administration’s social policy.
- January 2026: Ministry of Housing identifies land scarcity in Java as the primary risk to the 2026 targets.
- April 13, 2026: BP Tapera officially migrates all housing subsidy services to the Tapera Mobile app, decommissioning the SiKasep system.
- April 14, 2026: REI Banten holds its Halal Bihalal, formally identifying Tangerang Regency as the most difficult area for land conversion and calling for the immediate implementation of the SLIK debt-clearing policy.
- Late April 2026 (Projected): OJK is expected to issue a formal circular to commercial banks regarding the new credit scoring flexibility for subsidized mortgage applicants.
The success of the housing program in Banten will depend heavily on the synergy between DPD REI, the provincial government, and national regulators. As the Task Force begins its work, the industry remains cautiously optimistic that the "angin segar" (fresh breeze) of policy reform will soon translate into concrete results on the ground, allowing thousands of families in Banten to finally secure their own homes.