Understanding the BSPS Programme: BSPS is Housing Assistance for Low-Income Families in Indonesia

For Indonesians who are looking for a home or seeking ways to improve the quality of their homes, there is something called BSPS. BSPS, or Bantuan Stimulan Perumahan Swadaya (Self-Help Housing Stimulus Assistance), is a government programme aimed at improving the quality of homes for low-income communities (MBR) in Indonesia.

This programme is led by the Ministry of Public Works and Housing (PUPR). Its primary target is to address uninhabitable homes (Rumah Tidak Layak Huni or RTLH) and transform them into safe, healthy, and liveable spaces.

According to the Ministry of PUPR, this self-help housing stimulus assistance programme operates on a self-help model. What does this mean? It means that the government encourages beneficiaries to carry out construction or renovation work independently or in community groups.

This aligns with the government's goal of reducing the national housing backlog. Often, homeowners borrow money to renovate their homes but face difficulties repaying the loans.

By combining financial assistance and building materials, the programme is well-suited to reduce debt and improve the well-being of Indonesian communities.

Objectives of the BSPS Programme

One of the primary objectives of BSPS is to ensure access to decent housing for low-income families.

In the future, the renovated homes of aid recipients must meet minimum structural and health standards. Ultimately, this will contribute to improving living conditions throughout Indonesia.

The Indonesian government believes that adequate housing is closely linked to breaking the cycle of poverty. Good housing will promote better health, education and productivity. All of these are vital for escaping poverty.

This programme also supports the government's broader housing agenda by reducing the number of substandard homes. With an estimated 26 million substandard homes in the country, BSPS plays a strategic role in addressing this crisis.

How Does BSPS Work and What is the Home Construction Process?

The BSPS programme is a collaborative effort involving various parties, from government officials to local communities. The Ministry of Housing and Settlement (PKP) is responsible for policy formulation, fund distribution, and oversight.

In the latest cabinet meeting, Minister Maruarar Sirait highlighted the government's focus on this programme, stating that “There are two main programmes of the PKP Ministry for 2026, namely the BSPS Programme and subsidised housing.”

After that, implementation in the field is supported by facilitators, or Field Facilitators (TFL), who guide beneficiaries in planning and construction. According to the official Instagram account of the Directorate General of Housing Areas under the Ministry of Public Works and Housing, posted on Tuesday (17/6/2025), Fitrah Nur, Director General of Housing Areas, stated, “Data on potential beneficiaries must be entered into the DTSEN system. On-site, we have field companions, facilitators, and the current composition being planned is 2 facilitators for 40 beneficiaries,” Fitrah stated in the post.

BSPS assistance is provided in the form of stimulus funds that can be used for home renovation or construction. Materials are supplied by local merchants, ensuring that the renovation process also stimulates the regional economy.

Beneficiaries are expected to contribute labour and coordinate construction within their communities. All of this aims to enhance residents' self-reliance in improving housing quality so they can live in decent homes in healthy, safe, and comfortable environments.

BSPS is: Housing Categories and Types of BSPS Assistance

Self-Reliance Housing Quality Improvement (PKRS)

PKRS focuses on upgrading existing houses to meet basic standards. Improvements may include structural upgrades, sanitation, and space allocation to support healthy living conditions. These activities are usually carried out by individual households or local groups.

New Independent Housing Development Programme (PBRS)

For families who do not have adequate housing, PBRS facilitates the construction of new homes. These homes must be built on legal land in accordance with zoning regulations and safety standards, providing long-term stability for their residents.

According to data from Detiknews, each approved household receives a budget of 20 million rupiah, which is allocated as follows: Detiknews, setiap rumah tangga yang disetujui menerima anggaran 20 juta, yang dialokasikan sebagai berikut:

Rp17.5 million for building materials

Rp2.5 million for labour costs

In some cases, the programme also includes additional support in the form of public infrastructure and utilities (PSU) such as clean water, electricity, and sanitation.

The cash provided to BSPS recipients is used to purchase building materials and pay labour costs.

Who is Eligible for BSPS Assistance?

Eligibility for BSPS assistance is regulated by Ministerial Regulation No. 07/PRT/M/2018, with the following criteria:

• Prospective beneficiaries must be Indonesian citizens (WNI) and legally married.
• Must legally own or control land that is free from dispute.
• Must not own other liveable housing.
• Must not have received similar housing assistance before.
• Must earn up to the regional minimum wage.
• Must be willing to participate in self-help development and form a KPB (Aid Recipient Group).

Registration and Selection Process

Although registration is usually coordinated through local governments, residents or community leaders can recommend individuals who are eligible for assistance. The Ministry conducts administrative and physical verification to assess the eligibility of prospective recipients.

“After the proposed recipients are submitted, in addition to administrative selection, we will also conduct physical selection,” said Fitrah Nur.

After verification, beneficiaries will collaborate with facilitators and providers to begin the housing improvement process.

Programme Implementation Objectives and Future Expansion

The Indonesian government has set ambitious targets for BSPS in the coming years. For 2025, the Ministry plans to renovate 45,000 homes through this programme, with work already underway.

Minister Sirait confirmed the progress by stating, “For the self-help housing stimulus assistance programme (BSPS) with a target of 45,000 houses, we have already begun the absorption process this month with BPKP,” he said at the Coordinating Ministry for Economic Affairs office in Central Jakarta on Tuesday (5/8/2025).

Looking ahead to 2026, the government plans to expand the BSPS to cover 2 million homes, while also launching 500,000 subsidised housing units through the KPR FLPP Sejahtera programme. Support from the House of Representatives (DPR) has been sought to ensure smooth implementation.

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