The Indonesian government’s decision to implement a land moratorium in West Java poses a significant threat to national housing development, a sector where the province holds the largest market share. The Association of Indonesian Housing and Settlement Developers (APERSI) warns that this policy could severely limit access to affordable subsidized housing for low-income communities.
M. Solikin, Deputy Chairman of APERSI, emphasized West Java’s critical role in the national subsidized housing program. “Any policy that restricts land in West Java will directly impact the national supply of subsidized homes,” Solikin stated in an interview with Katadata.co.id on Friday, December 19.
Data from the Public Housing Savings Management Agency (BP2BT) underscores this importance. As of Friday, December 19, a total of 263,017 subsidized housing units have been disbursed nationwide since early 2025. Of these, a substantial 58,848 units were in West Java. This means that roughly one in five subsidized homes distributed this year are located in West Java. Furthermore, three out of the five districts/cities with the highest subsidized housing disbursements—namely Bekasi, Bogor, and Karawang—are all situated within the province.
The implications of the land moratorium extend beyond just new projects. Solikin explained that it could also halt ongoing subsidized housing developments, particularly when previously permitted development sites are suddenly reclassified as protected areas or sustainable food agricultural land. He cited a concerning case where a subsidized housing project, built and inhabited since 2016 with certified land, found itself unable to obtain building permits due to such a reclassification. “The homes are built and occupied, the land is certified, yet building approval permits cannot be issued. As a result, production stops, and investment stalls,” he lamented.
Moreover, the moratorium is expected to drive up construction costs for subsidized housing in West Java. Limited land availability compels developers to seek out more expensive alternative locations or incur additional expenses for infrastructure development. In the long term, this upward pressure on costs could translate into higher prices for subsidized homes, further eroding the purchasing power of prospective buyers. Solikin concluded that the moratorium ultimately disadvantages low-income individuals aspiring to own a home.
In light of these concerns, Solikin urged the government to conduct a comprehensive, data-driven evaluation of the policy. He stressed that land moratoriums should not be reactive, especially when they adversely affect public housing programs. “If it’s merely a knee-jerk reaction to flooding in other areas, then address the Puncak Cianjur region first, which is riddled with thousands of unlicensed buildings. Meanwhile, we, as investors and developers, have made every effort to comply with existing regulations,” he asserted. He further warned that environmental zoning should target areas with massive spatial planning violations, not housing projects that have adhered to regulations from the outset. “This policy must not create public anxiety and hinder the subsidized housing program. Developers have invested and complied with rules, only to suddenly be unable to produce,” he added.
Moratorium on Housing Permit Issuance Expanded
West Java Governor Dedi Mulyadi has indeed broadened the temporary suspension of housing permit issuance, extending its scope from the Bandung Raya area to encompass the entire province. This significant step is formalized in West Java Governor’s Circular Letter Number 180/HUB.03.08.02/DISPERKIM concerning the Temporary Suspension of Housing Permit Issuance in West Java Province, which Dedi signed on December 13, 2025.
The circular explicitly cites the escalating threat of hydrometeorological disasters, such as flash floods and landslides, which are no longer localized but now pose a risk to nearly all of West Java. This widespread vulnerability, the letter states, necessitates a more comprehensive and integrated mitigation approach. “The potential for hydrometeorological natural disasters, in the form of flash floods and landslides, is not only occurring in the Bandung Raya region but also throughout all of West Java,” Dedi wrote in the letter, as quoted by Antara.
Through this policy, the West Java Provincial Government has temporarily halted all housing permit issuances until each district and city completes its disaster risk assessment and adjusts its Regional Spatial Plan (RTRW). Furthermore, local governments across West Java are mandated to review existing development sites proven to be located in disaster-prone areas. This includes regions susceptible to landslides and floods, agricultural lands such as rice fields and plantations, and ecologically vital areas like water catchment zones, conservation areas, and forests.
Accompanying this, oversight on the construction of houses, housing complexes, and other buildings will be significantly tightened. All new developments must strictly adhere to land designations and spatial plans, ensure they do not diminish the environment’s carrying capacity and absorption capacity, and comply with technical construction standards to guarantee building reliability and safety.
Summary
The West Java government has implemented a province-wide land moratorium, citing increased risks of hydrometeorological disasters, which significantly threatens national subsidized housing development. Formalized by Governor Dedi Mulyadi, this policy is critical because West Java accounts for a substantial portion of affordable homes nationwide. The Association of Indonesian Housing and Settlement Developers (APERSI) warns the moratorium will limit land access, potentially halt existing projects, and drive up construction costs, ultimately impacting low-income communities seeking homes.
The moratorium temporarily suspends housing permit issuance until districts complete disaster risk assessments and adjust their spatial plans, also mandating reviews of developments in disaster-prone or vital ecological areas. APERSI urges the government to conduct a comprehensive, data-driven evaluation of the policy. They emphasize that land restrictions should target actual spatial planning violations rather than compliant housing projects, warning that the policy risks creating public anxiety and hindering a critical program for aspiring homeowners.
