Indonesia keeps 5 percent subsidized housing loan rate despite BI hike

Jakarta (ANTARA) - Minister of Housing and Settlement Areas (PKP) Maruarar Sirait announced no hike in interest rate for subsidized housing, remaining at flat with 5 percent through the entire payment period.

Despite the increase in the BI Rate, the government maintains the Housing Financing Liquidity Facility (FLPP) Home Ownership Credit (KPR) interest rate at 5 percent, enabling homebuyers to access affordable mortgage installments.

"The state is present and takes sides with the people, especially low-income people. In the midst of economic dynamics and an increase in the BI Rate, FLPP interest is still maintained at 5 percent," the minister confirmed on Friday (June 19).

He also emphasized that the FLPP KPR tenor policy of up to 40 years as directed by President Prabowo Subianto has been discussed intensively and is feasible under applicable rules and regulations.

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Sirait also provided an update on the distribution of the FLPP in 2026. Of the annual target of 350,000 housing units, 78,277 units had been financed as of the reporting date, representing approximately 22.36 percent of the target.

During his meeting with Danantara Indonesia on strategic support for the 3 Million Houses Program, related parties also discussed compiling an inventory of flats owned by state-owned enterprises (SOEs) to optimize state assets for housing provision.

In addition, the Roofing Improvement Program which aims to improve the quality of people's homes, also received support from the banking sector, especially PT Bank Rakyat Indonesia (Persero) Tbk.

Sirait added the discussion also covered the issue on the completion of the Meikarta flats, starting from the grant handover process, accelerating due diligence on land legality which is currently being carried out by Danantara, to the designation of an SOE to implement the project.

Another topic discussed was the formulation of a pricing scheme for each housing unit to facilitate effective public outreach, along with the preparation for a Presidential Instruction (Inpres) initiated by Danantara as part of efforts to accelerate the resolution of strategic housing and residential issues.

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Translator: Suharsana Aji C, Resinta Sulistiyandari

Editor: Martha Herlinawati Simanjuntak

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