The Fasilitas Likuiditas Pembiayaan Perumahan (FLPP) Program is a strategic government instrument designed to assist Low-Income Households (LIH) in accessing safe and affordable homeownership. With a fixed interest rate of 5% for up to 20 years, a 1% down payment, and installment structures calibrated to remain affordable for households classified as low-income, the scheme adopts a blended finance model—consisting of 75% State Budget (APBN) financing and 25% bank financing—to ensure long-term financial stability. This mechanism plays a critical role in reducing Indonesia’s national housing backlog, which has reached 15 million units.

As of mid-2025, more than 117,000 housing units have been delivered through the FLPP Sejahtera Mortgage scheme, demonstrating the effectiveness of subsidy-based financing in expanding access to homeownership while stimulating economic growth. Construction activities and the broader building-material supply chain generate measurable multiplier effects on the national economy through increased value added and employment absorption. With an annual target of 350,000–440,000 units, FLPP is a central component of the National Strategic Program “Three Million Homes.”

The Lembaga Teknologi Universitas Indonesia (Lemtek UI) serves as a scientific and analytical partner in ensuring that FLPP implementation remains effective through evidence-based evaluation, economic impact modeling using the Input–Output framework, and the formulation of strategic policy recommendations. This research-driven approach strengthens program accountability, enhances targeting precision, and broadens financial access for Indonesian families in need of adequate and dignified housing.