JAKARTA - Indonesia wants small construction businesses to play a bigger part in solving its housing shortage. Housing Minister Maruarar Sirait said this week that his ministry is working with the MSME Ministry to give local contractors, developers, and building shops more access to government housing projects.

The push comes through a lending program called KUR Perumahan, which helps small businesses get credit to work on housing developments. Sirait said the program is already making a difference for builders across the country.

"As long as MSMEs maintain good quality, we will integrate them into the Housing Ministry's programs," Sirait said, as quoted by state-owned news agency Antara. "We want them to be a vital part of the housing ecosystem."

For years, most government housing work went to big developers. Now officials think spreading that work around will do more than just build houses but also boost local economies. When a small contractor gets a project, that money flows to material suppliers, day laborers, and service providers in the area.

The MSME Ministry is starting to map out which small builders are working in housing and where they're located. They begin in Serang, Bogor, and the Semarang-Kendal corridor, all areas with strong construction sectors.

Sirait thanked several ministers for backing the program, including Coordinating Minister for Economic Affairs Airlangga Hartarto and Finance Minister Purbaya Yudhi Sadewa. He said getting small businesses more involved should help Indonesia build the affordable homes it needs while keeping more money in local communities.

This policy could affect migration patterns by creating construction jobs in secondary cities like Bogor and Semarang instead of concentrating housing work in Jakarta. 

Recent UN data reveal that nearly 42 million people reside in the Greater Jakarta area, making it the most populated city in the world.