Indonesia approves 40-year subsidized mortgage scheme

Jakarta (ANTARA) - Housing and Settlement Areas Minister Maruarar Sirait stated that the subsidized home ownership mortgage (KPR) scheme with a tenor of up to 40 years has been approved and is ready for implementation.

Sirait said the decision was made during a limited meeting of the Public Housing Savings Management Agency (BP Tapera) Committee, attended by Finance Minister Purbaya Yudhi Sadewa, Manpower Minister Yassierli, and BP Tapera Commissioner Heru Pudyo Nugroho.

"The Committee approved the 40-year tenor implementation. Yes, it is in line with President Prabowo Subianto's directive, and we fully support the President's instruction," Sirait said after the Tapera Committee meeting here on Wednesday.

According to him, the committee approved the extension of the KPR tenor to 40 years as a follow-up to President Prabowo's directive to provide a more affordable housing financing scheme for the public.

He emphasized that the government is ensuring that the scheme will not only benefit the public but can also be implemented in a sustainable manner by banks serving as financing distributors.

"We are designing schemes that can be implemented properly, benefit the people, and be carried out by the banking sector," he remarked.

In addition to approving the longer tenor, the government also decided to maintain the interest rate for landed subsidized housing mortgages at 5 percent despite the increase in the BI rate.

Sirait assessed that maintaining the 5-percent interest rate reflects the government's consistency in supporting President Prabowo's flagship program to expand public access to subsidized housing.

Meanwhile, for subsidized apartment units, the government has set the mortgage interest rate at 6 percent as part of a financing scheme tailored to the characteristics of vertical housing.

He also revealed that the government has prepared a quota of 350,000 subsidized housing units and has asked BP Tapera to strengthen coordination with banks and developers to ensure the target is achieved.

Related news: Indonesia keeps 5 percent subsidized housing loan rate despite BI hike

Related news: Indonesia to extend mortgage tenor to 40 years to ease payments

Translator: Harianto, Kenzu

Editor: Arie Novarina

Copyright © ANTARA 2026