The Indonesian government has set a target of constructing 3 million housing units per year to address housing demand and stimulate the economy. This ambitious plan is expected to significantly increase cement demand, helping to alleviate the country’s oversupply situation.
According to Hashim Djojohadikusumo, Special Envoy for Climate Change and Energy, the housing development plan is a top priority under President Prabowo Subianto’s administration. Beyond meeting housing needs, this initiative serves as a key driver of national economic growth, creating a ripple effect that boosts domestic consumption.
Indonesia has already secured funding commitments from Qatar to build 4 to 6 million housing units and has reached an agreement with the UAE to construct an additional 1 million homes. Moreover, countries such as China, Turkey, India, and Singapore have expressed interest in participating in Indonesia’s housing expansion efforts.
The implementation of this project is expected to stimulate 185 related economic sectors, including the cement industry. According to Minister of Housing and Settlements, Maruarar Sirait, the goal of building 3 million homes annually has attracted foreign investors, but further efforts are required to finalize cooperation agreements.
For 2025, Indonesia has allocated 5.07 trillion Rupiah (approximately $311 million) for housing development, with 1.2 trillion Rupiah specifically designated for the construction of Nusantara, the country’s new capital in East Kalimantan.