Introduction

On 28 July 2026, the Minister of Housing and Settlement Areas of the Republic of Indonesia issued Minister of Housing and Settlement Areas Regulation No. 6 of 2026 on the Home Renovation Program ("MHSA Regulation 6/2026"), which took effect on 29 July 2026. MHSA Regulation 6/2026 establishes the regulatory framework governing the implementation of the Government's Home Renovation Program, including the eligibility requirements and criteria for beneficiaries, the mechanism for the disbursement of financial assistance, and the supervision of program implementation to improve the quality of uninhabitable housing (Rumah Tidak Layak Huni or RTLH) for low-income communities.

MHSA Regulation 6/2026 updates the provisions governing the Self-Help Housing Stimulant Assistance Program (Bantuan Stimulan Perumahan Swadaya "BSPS"), previously regulated under Minister of Housing and Settlement Areas Regulation No. 10 of 2025, as amended by Minister of Housing and Settlement Areas Regulation No. 4 of 2026 ("MHSA Regulation 10/2025"). The previous regulatory framework was considered no longer adequate to accommodate legal developments and the evolving practical needs encountered in implementing housing assistance programs.

MHSA Regulation 6/2026 is principally issued pursuant to:

• Law No. 1 of 2011 on Housing and Settlement Areas, as amended by Law No. 6 of 2023;
• Presidential Regulation No. 191 of 2024 concerning the Ministry of Housing and Settlement Areas; and
• Minister of Housing and Settlement Areas Regulation No. 1 of 2024 on the Organization and Working Procedures of the Ministry, as amended by Ministerial Regulation No. 17 of 2025.

Comparison

Key Provisions
Eligibility Criteria for Home Renovation Assistance

MHSA Regulation 6/2026 provides that beneficiaries of the Home Renovation Program must be individual Indonesian citizens classified as Low-Income Communities (Masyarakat Berpenghasilan Rendah "MBR") who satisfy the applicable eligibility requirements following factual verification and are formally designated by the Commitment-Making Officer (Pejabat Pembuat Komitmen "PPK").

Eligible Beneficiaries

The Regulation specifies that prospective beneficiaries must fall within one of the following categories:

Family-Based Applicants, comprising:

• married couples;
• married couples with children;
• single parents with children;
• extended family households;
• households supporting family members without blood relations.

It also recognizes several special categories of applicants, including:

• persons with disabilities;
• senior citizens; and
• widows or widowers.

Economic Eligibility

To qualify for assistance, applicants must either:

• be registered within Deciles 1 to 4 of the latest National Integrated Socio-Economic Data (Data Tunggal Sosial Ekonomi Nasional – "DTSEN"); or
• earn no more than the applicable Provincial Minimum Wage (UMP) or Regency/City Minimum Wage (UMK).

The Regulation further provides that applicants classified within Deciles 1 and 2 constitute the Government's highest priority and must receive priority in the allocation of housing assistance.

Additional Requirements Based on the Type of Assistance

The Regulation distinguishes between assistance for housing renovation and new house construction, each subject to separate eligibility requirements.

Housing Renovation

Applicants seeking assistance for housing renovation must:

• own or occupy their only residence;
• occupy a house categorized as uninhabitable housing (RTLH) that fails to satisfy at least one minimum standard relating to:
  • structural safety;
  • minimum floor area; or
  • sanitation and habitability;
• have never previously received assistance under the Home Renovation Program or any other government housing financing assistance program for low-income communities.

Construction of New Houses

Applicants seeking assistance for new housing construction must:

• not currently own a house, including where assistance is intended to replace a house that has been totally destroyed; and
• have never received any form of government housing assistance.

Land Status Requirements

The Regulation also requires that:

• the land has a valid ownership or lawful possession status;
• the land is free from legal disputes; and
• the proposed construction site complies with the applicable Regional Spatial Plan (Rencana Tata Ruang Wilayah – RTRW).

Special Provisions for Disaster-Affected Communities

MHSA Regulation 6/2026 introduces special exemptions for applicants affected by natural disasters.

Under these provisions, the economic eligibility requirements and the prohibition against having previously received government housing assistance may be waived, provided that:

• the applicant's residence has sustained actual disaster-related damage confirmed through factual verification; and
• the reconstruction or renovation is carried out within an area designated for residential use under the applicable spatial plan or another location officially determined by the Central or Regional Government.

Assessment and Verification of Beneficiaries

MHSA Regulation 6/2026 introduces a two-tier assessment and verification mechanism to ensure that housing assistance is granted only to eligible beneficiaries. Pursuant to Articles 12 and 13, the determination of prospective beneficiaries is carried out through administrative verification using an integrated digital system, followed by on-site factual verification.

Administrative Verification

The first stage consists of an administrative review of the information submitted through the Ministry's integrated electronic platform. During this stage, the Proposal Verification Team examines the accuracy and completeness of the applicant's data and supporting documents uploaded to the Ministry of Housing and Settlement Areas' official digital system.

The Proposal Verification Team comprises the relevant Technical Directorate under the Directorate General and/or the Ministry's Data and Information Technology Management Center. The team is established by the Director General under authority delegated by the Minister.

Factual Verification

Applicants who successfully pass the administrative review are subject to on-site verification to confirm the accuracy of the submitted information and assess the actual condition of the proposed residence.

This factual verification is conducted by Community Facilitators (Tenaga Pendamping Masyarakat  "TPM") together with the Housing Provision Implementation Center (Balai Pelaksana Penyediaan Perumahan "BP3KP"). The verification process takes into account several operational considerations, including:

• the completeness of supporting data;
• accessibility of the project location;
• availability of construction materials and labor; and
• security conditions at the project site.

Expedited Verification Mechanism

For emergency situations requiring immediate government intervention—such as post-disaster recovery or strategic national assignments—the Regulation authorizes the Minister or the Director General to establish a Special Verification Team to conduct both administrative and factual verification on an expedited basis.

Such authority may be exercised in response to directives issued by the President or policy instructions of the Minister.

Oversight and Legal Accountability

To ensure transparency and legal certainty, verification officers may coordinate with regional governments and law enforcement agencies during the factual verification process. This coordination aims to safeguard field officers, prevent irregularities, and mitigate data manipulation.

All verification findings must be documented in an official verification report signed by the assigned Community Facilitator or Ministry official and endorsed by the Head of BP3KP. The report constitutes a mandatory prerequisite for the formal designation of a beneficiary.

Priority Allocation of Housing Assistance

Article 3 paragraph (4) provides that the allocation of Home Renovation Program assistance is determined based on two principal considerations:

• regional criteria; and
• beneficiary criteria.

Furthermore, Article 4 requires the allocation mechanism to promote equitable regional development by ensuring that housing assistance is distributed across different provinces and regencies/municipalities.

In practice, this policy is implemented through the allocation of minimum assistance quotas for each province and/or regency or municipality, subject to the Government's fiscal capacity and the availability of state budget appropriations.

Funding and Disbursement of Housing Assistance

MHSA Regulation 6/2026 establishes a comprehensive financial governance framework governing the funding, disbursement, and utilization of Home Renovation Program assistance. The relevant provisions are set out in Articles 1, 12, 18, 20, 23, and 29.

Funding Source

The Regulation provides that the Home Renovation Program is financed entirely through the State Budget (Anggaran Pendapatan dan Belanja Negara "APBN") allocated to the Ministry of Housing and Settlement Areas.

Budget implementation is administered by:

• the Budget Authorization Holder (Kuasa Pengguna Anggaran "KPA"), who exercises delegated budgetary authority on behalf of the Budget User; and
• the Commitment-Making Officer (Pejabat Pembuat Komitmen "PPK"), who is authorized to make decisions resulting in expenditures charged to the State Budget, including determining eligible beneficiaries.

Disbursement Mechanism

Housing assistance must be disbursed through non-cash transfers directly to the beneficiary's bank account or the account of the beneficiary group.

The financial assistance may only be used for:

• purchasing construction materials; and
• paying construction workers' wages.

Every expenditure must be supported by valid proof of purchase and verified by the assigned field facilitator to ensure proper accountability for the utilization of public funds.

The Regulation further provides that assistance is disbursed in a single installment directly from the State Treasury to the beneficiary. Payments to suppliers of construction materials must be completed via bank transfer within five days after the materials have been delivered and verified as complying with the applicable specifications.

Building Material Supply Chain

One of the notable features introduced by MHSA Regulation 6/2026 is a dedicated framework governing the procurement and distribution of building materials for the Home Renovation Program. Rather than treating the procurement of building materials as a government procurement activity, the Regulation establishes a community-based procurement mechanism designed to promote efficiency, transparency, and beneficiary participation.

Articles 24 to 27 provide that the supply chain for building materials must be organized through an open selection process involving building material suppliers or retailers. This mechanism falls outside the scope of government procurement of goods and services, as the selection process is conducted directly by beneficiary groups instead of government agencies.

Under this framework, beneficiary groups are required to select the procurement scheme that provides the greatest overall benefit while ensuring accountability in the use of public funds.

Although beneficiaries retain the right to determine their preferred building material supplier, Article 26 requires the selection to be made collectively through an open selection process organized by the head of the beneficiary group. This mechanism is intended to secure competitive pricing, promote transparency, and ensure that the selection process is conducted free of charge.

The Regulation also authorizes the Ministry, in coordination with other ministries and government institutions, to facilitate cooperation between beneficiary groups, suppliers, and manufacturers of building materials in order to support the efficient distribution of construction materials.

Open Selection of Building Material Suppliers

Article 25 refers to the open selection process, commonly described as a community tender (tender rakyat) as a collective mechanism through which beneficiary groups select suppliers of construction materials.

The Regulation requires the selection process to be:

• open;
• transparent;
• conducted free of charge; and
• completed within five calendar days after the housing assistance funds have been credited to the beneficiary's account.

The selected supplier must execute both:

• a Statement of Commitment confirming its ability to supply and deliver the required building materials; and
• an Integrity Pact, affirming its commitment to provide construction materials honestly, transparently, professionally, and in accordance with the principles of accountability.

Transitional Provisions

Articles 45 and 46 set out transitional arrangements governing applications and financial assistance that remained pending when MHSA Regulation 6/2026 entered into force.

Applications for housing assistance that had been submitted or were under administrative processing but had not yet undergone verification, together with disbursement processes that had not yet commenced, must be completed in accordance with MHSA Regulation 6/2026.

Conversely, applications that had already completed the verification process (including substitute verification) as well as disbursement and distribution processes that had already been initiated, continue to be governed by MHSA Regulation No. 10 of 2025, as amended by MHSA Regulation No. 4 of 2026. This approach is intended to preserve legal certainty and avoid disruption to assistance programs already in progress.

In addition, Article 47 authorizes the Director General responsible for administering the Home Renovation Program to commence planning for the following fiscal year's program during the current fiscal year. This provision is intended to facilitate the timely implementation of the Home Renovation Program in the subsequent budget year.

Conclusion

MHSA Regulation 6/2026 substantially reforms Indonesia's regulatory framework governing the Home Renovation Program by replacing the previous Self-Help Housing Stimulant Assistance (BSPS) regime with a more integrated and accountable implementation framework. The Regulation introduces significant changes, including updated eligibility criteria based on socio-economic welfare data, mandatory use of an integrated digital system throughout program implementation, a structured assessment and verification process, revised funding and disbursement procedures, and a community-based mechanism for procuring building materials.

The Regulation also reinforces principles of transparency, accountability, and equitable distribution by establishing clearer verification procedures, prioritizing assistance for the lowest-income households, and ensuring regional balance in the allocation of government housing assistance. At the same time, the transitional provisions provide legal certainty by allowing ongoing applications and disbursement processes to proceed under the appropriate regulatory framework, thereby facilitating a smooth transition from the previous BSPS regime to the new Home Renovation Program.