The Indonesian government’s plan to build three million houses annually is expected to increase the demand for cement and help address the excess supply of cement in the country.
Hashim Djojohadikusumo, the country’s special envoy for climate change and energy, affirmed that implementing the housing programme is a priority for the government under President Prabowo Subianto, reported Antara, Indonesian News Agency.
“As long as Mr Prabowo leads, the housing programme will continue,” said Hashim, a younger brother of the president.
He said that the programme 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 4m to 6m housing units,” Hashim said. Indonesia has also agreed on bilateral cooperation with the UAE to build 1m houses, he added. “Not to mention interest from China, Turkey, India, Singapore, and other countries.”
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 3m-housing programme has begun attracting foreign investors, though significant effort is still needed to finalise partnerships. He explained that the housing budget plan for 2025 is IDR5.07trnn (over US$311m), including IDR1.2trnn for the development of Nusantara, Indonesia's new capital in East Kalimantan.
