Holiday Ayo - 

The Indonesian government is currently developing a subsidized housing program with units measuring 18 square meters, specifically targeting the younger generation, including Gen Z. These subsidized homes are planned to be built in urban areas to facilitate easier access to workplaces and daily activities.

Sri Haryati, Director General of Urban Housing at the Ministry of Public Works and Housing (PUPR), stated that the policy responds to the preferences of young people, who prioritize strategic location over housing size.

“The main reason for constructing smaller-sized homes is to meet the needs of young citizens, particularly Gen Z, who tend to prefer living close to their workplaces,” said Sri Haryati on Tuesday (June 17, 2025).

She explained that this program focuses on urban zones to support time efficiency and mobility while offering more affordable prices. Meanwhile, housing in rural areas will continue to follow existing subsidized home regulations.

“We are prioritizing this plan for areas around cities. The aim is to bring homes closer to activity centers while offering lower prices. For rural areas, we will continue to follow the existing rules. The policy is still under formulation,” she added.

Furthermore, Sri Haryati noted that most existing subsidized homes have a maximum size of 36 square meters, while others are around 27 square meters. The development of 18-square-meter homes is part of a new initiative by the PUPR Ministry to expand access to affordable and livable housing.

“The development of this new housing type is still in the planning stage and not yet finalized. The Ministry of PUPR, under the direction of the Minister, is open to discussions with all stakeholders to ensure this policy meets its intended goals,” she concluded.