Indonesia to Build 1,000 Low-Cost Apartments in Jakarta With Astra and KAI

The Indonesian government has entered into a collaboration with PT Astra International and the state railway operator PT Kereta Api Indonesia (KAI) to develop 1,000 low-cost apartment units in Jakarta. The initiative is part of the three million houses priority program established by President Prabowo Subianto.

Public Works and Housing Minister Maruarar Sirait announced the partnership during a site visit in Jakarta on April 5, 2026. The project will utilize a 6,500-square-meter plot of land currently used as a parking area at Jakarta Kota Station, located on Jalan Lada Dalam in West Jakarta.

Project Specifications and Target Demographics

Boy Kelana Soebroto, the Chief of Corporate Affairs at PT Astra International, confirmed the company’s commitment to the construction of the 1,000 units. According to the design specifications, each apartment unit will consist of a 35-square-meter space containing two bedrooms and one bathroom.

The residential development is strictly intended for low-income and fixed-income communities. KAI President Director Bobby Rasyidin noted that the chosen site possesses significant residential potential because it is situated at a safe distance from the railway embankment and holds inherent commercial value.

Regulatory Framework and Funding

Minister Maruarar Sirait stated that the government is currently drafting new regulations to manage subsidized high-rise housing. These upcoming policies are intended to define the specific schemes for subsidized units that are constructed on state-owned land.

The funding for these units will be facilitated through corporate social responsibility (CSR) initiatives. The project represents a strategic alignment between state assets, government policy, and private sector funding to address housing shortages in the capital city.

Timeline and Implementation

While the government intends to break ground on the project later in 2026, a definitive completion date has not yet been established. The commencement of construction is dependent on formal government confirmation regarding the availability of the land.

The coordination of the project involves several high-level officials, including Dony Oskaria, the Head of the State-Owned Enterprises Regulatory Agency, who is also the President Director of KAI.