BTN plans subsidised housing clusters in Labuan Bajo amid high rents

Labuan Bajo — Bank Tabungan Negara’s Kupang branch is preparing several subsidised housing projects in Labuan Bajo as part of a wider 2025 programme to build 800 low-cost homes across East Nusa Tenggara, amid concern over high rental costs for workers in the tourism town, according to multiple Indonesian media reports.

Branch manager Hans Maruahal Hutasoit told reporters that the branch has been allocated a quota of 800 subsidised units for 2025 for low-income households in the province, up from about 425 units completed in 2024, with new projects planned in locations including Kupang and Labuan Bajo.

According to coverage by Media Indonesia, BTN Kupang is preparing subsidised housing in Labuan Bajo spread across three sites, with clusters of around 40 units, about 189 units and about 20 units.

Hutasoit said demand for housing in Labuan Bajo remains strong despite broader economic pressures, partly because room rental prices are high compared with local incomes.

High rentals drive housing demand

Media Indonesia reported that rents for boarding rooms in Labuan Bajo can range from around Rp2 million to Rp3 million per month, a level that can strain the budgets of tourism workers and other low-income residents.

He said the subsidised housing projects form part of the national administration’s programme to develop three million homes, with BTN expected to play a central role in delivering mortgage-backed subsidised units.

In a separate report from Pos Kupang, Hutasoit said the branch has already completed 320 subsidised homes in East Nusa Tenggara between January and June 2025 and aims to channel another 200 units in the third quarter.

He noted that housing for low-income residents is being built in various districts, and that Labuan Bajo is a priority because of the area’s status as a flagship tourism destination where living costs are higher.

Projects still taking shape

Pos Kupang reported that BTN Kupang has collaborated with several developers to build subsidised homes in the Merombo area of Labuan Bajo.

However, Hutasoit said the process remains constrained by land legality issues, and that land certificates must be settled before construction can proceed to avoid legal problems in future.

He did not provide a detailed timetable for resolving land documentation or for completing the Labuan Bajo projects.

Neither report specified the final sales prices, down payment requirements, interest rates or loan tenors that would apply to the homes in Labuan Bajo, nor did they detail the exact subsidy scheme or eligibility criteria.

While Pos Kupang mentioned an indicative range of 40–50 units for one of the planned developments, Media Indonesia’s report indicates that subsidised housing in Labuan Bajo is being prepared across several sites with differing unit counts, and that the exact configuration could still change.

Labuan Bajo’s housing pressure

Labuan Bajo has grown as a tourism gateway to Komodo National Park, supporting hotels, restaurants, tour operators and transport services.

Local media reports suggest that workers and other residents face relatively high housing costs, with room rents in the town cited as a factor driving interest in subsidised housing.

BTN’s planned projects in Labuan Bajo are therefore part of a broader effort to expand access to affordable housing for low-income households, but they remain at a preparatory stage, with site details, legal clearance and financing terms still to be clarified.

Sources

• Media Indonesia – "Bank BTN Kupang Tingkatkan Pembangunan Rumah Subsidi Jadi 800 Unit"
• Pos Kupang – "Atasi Tingginya Biaya Hidup, BTN Kupang Jajaki Pembangunan 50 Rumah Subsidi di Labuan Bajo"