Affairs related to public housing in Indonesia are very complex because the implementation system is very multi-actor, sectoral and tiered, making it a big challenge. Existing laws (UU) and Government Regulations (PP), such as Law Number 1 of 2011, Law Number 20 of 2011, Law Number 4 of 2016, as well as PP Number 14 of 2016, PP Number 64 of 2016, PP Number 47 of 2019, and PP Number 25 of 2020, are expected to be able to resolve basic service matters related to housing and residential areas. As is known, from 1950 until now (2024), or for 74 years, Indonesia has been trying to introduce the state's role in the housing sector. Efforts include various initiatives and programs designed to provide affordable and decent housing for the community.

The government continues to provide support for home ownership and occupancy through several policy and financing instruments. Policy and financing instruments implemented by the government include Tax Incentives, Housing Financing Liquidity Facilities (FLPP), Down Payment Assistance Subsidy (SBUM), Interest Difference Subsidy (SSB), Self-Help Housing Stimulant Assistance (BSPS), Savings-Based Housing Financing Assistance (BP2BT) , even the provision of flats (Rusun) and special houses (Rusus) through the PUPR Ministry as well as support for the provision of financing through PMN to BUMN (PT SMF and Bank BTN). However, the policies implemented by the government have not been able to overcome the problem of meeting housing needs.

In fact, until now, the government is still facing very difficult challenges in making this happen. The realization of urban housing provision is still very low, especially for low-income community groups (MBR). In fact, data from the Central Statistics Agency (BPS) shows that only 60.66% of households in Indonesia live in decent homes, and the rest live in inadequate housing. The backlog condition in Indonesia is still a big task to be resolved. Data from the Ministry of PUPR (2022) shows that 6.98 million households in Indonesia cannot afford to rent or buy a house, which is counted as a housing backlog. These households live rent-free because they have limited capacity to meet their needs. Apart from that, 17% of Indonesia's population does not own a house, which means that as many as 12.7 million households do not own a house, or what is commonly referred to as the home ownership backlog. As many as 1.13 million new households need a house every year in Indonesia. In fact, the Ministry of Public Works and Public Housing (PUPR) revealed that the realization of the One Million Houses Program, from 2015 to 2022, has reached 7.99 million housing units. This means that the gap in housing needs is still wide.

Public housing problems are becoming increasingly complicated due to urbanization. In this case, the housing sector is at the core of urbanization, both from the perspective of equality and equity and as an important investment sector. According to BPS data for 2022, more than 160 million Indonesians (57.9% of the total population) live in urban areas. The number of urban residents will continue to increase and is estimated to reach 318.9 million people with 72.8% of the population living in urban areas. In 2045, the increase in urban population and the flow of urbanization which continues to grow exponentially must of course be balanced with meeting the need for livable and affordable housing in urban areas which is equipped with adequate urban facilities, infrastructure and utilities.

If these needs cannot be met by urban areas, various problems will arise such as the growth of slum areas, traffic jams, lack of clean water, including the emergence of social problems such as crime and health problems which have an impact on stunting. If not resolved, these problems could hinder the realization of the national vision towards a Golden Indonesia 2045. Thus, the provision of urban housing is a determining factor that can realize this national vision. The development of a housing ecosystem that is a dynamic process can support the government's target of meeting the needs of livable houses for the Indonesian people. By 2045, the government has targeted a housing shortage of 0% or zero backlog, which is in line with the development of the Sustainable Development Goals (SDGs).

Considering the importance of the housing sector which has a strategic contribution to the economy in Indonesia and has the potential to grow the economy by up to IDR 48.8 trillion. Research results from the Institute for Economic and Community Research, Faculty of Economics and Business, University of Indonesia (LPEM FEB UI) in 2023 show that the property, real estate and construction sectors during the 2018-2022 period contributed to