Indonesia launched the "3 Million Homes" program, and it's not just another government initiative. It's actually reshaping where people want to live and work across the country.

Here's what's happening: The government is committed to building 2 million homes in rural areas and 1 million in urban centers. The funding is USD 327.6 million and it started in 2025. But more importantly, look at what's already happening on the ground from this initiative's momentum.

Regions with strategic infrastructure development are leading the charge. Take Yogyakarta. Inventory growth hit 281% in Java—the highest in the region. Why? The Solo-Yogya-YIA Kulonprogo Toll Road is complete. When you connect cities with decent roads, property values follow. People stop just thinking about living in one city; they start looking at the broader region as their real estate marketplace.

The same story is happening everywhere. North Sumatra saw 122% inventory growth thanks to new Trans-Sumatra Toll Road sections. East Kalimantan, which is supporting the new capital city Nusantara, saw 118% inventory growth. These aren't random numbers. They're proof that infrastructure drives real estate demand.

What's especially interesting is how different price segments are responding. The modest house segment led annual growth at 149% in search volume. People are looking. They're shopping. And they're serious about buying in areas with good infrastructure and better connectivity. In Jabodetabek specifically, Depok recorded 340% growth in lower-middle house segment transactions compared to 2023.

The role of financing is crucial too. Bank Indonesia lowered its benchmark interest rate to 5.75%, making mortgages cheaper for first-time buyers. Combine that with VAT relief on homes priced at or below IDR 5 billion, and you unlock real purchasing power. In Q4 2024, mortgage and apartment ownership loan transactions grew 58% compared to the previous quarter. That's when people start actually signing deals.

For developers, this is the moment to understand market demand better. Traditional markets like Jakarta remain important—they still generated 31.8% of national real estate revenue in 2024. But the growth stories are in secondary cities with improving infrastructure. Surabaya's rental market grew 28% in Q3 2024. East Java is the fastest-growing region in the country with a 6.61% CAGR projected through 2030.

The government's affordable housing focus isn't charity. It's economic strategy. Construction employment grows when you're building. Communities develop when people have better housing. Poverty levels improve with stable home ownership. It's practical policy that benefits society while creating real market opportunities.

Smart developers are already positioning for this shift. They're looking at corridors around new toll roads, areas near transit hubs, and regions supporting infrastructure projects like Nusantara. These aren't speculative bets. These are places where demand is already showing up in data.

The interesting part for investors? This program is just getting started. The momentum from 2024 research and search data shows people are becoming more optimistic about property investment outside traditional markets. Combined with infrastructure improvements and better financing options, we're looking at a multiyear opportunity for properties in strategic growth corridors.