{
    "success": true,
    "data": {
        "id": 1589483,
        "msgid": "is-a-30-year-mortgage-repayment-really-at-risk-of-boosting-non-performing-loans-1772694306",
        "date": "2026-03-05 13:29:45",
        "title": "Is a 30-year mortgage repayment really at risk of boosting non-performing loans?",
        "author": "Hilda B Alexander",
        "source": "KOMPAS",
        "tags": "",
        "topic": "Finance",
        "summary": "Indonesia plans to extend mortgage tenors to 30 years to improve affordability and access to housing finance. SMF's Bonai Subiakto argues that longer tenors lower instalments and expand access, while not directly increasing NPL risk, though long-term funding is required. He notes that NPLs are more tied to purchasing power and economic shocks, with the Covid-19 period showing resilience in housing finance; the policy could bring greater stability for borrowers and lenders.",
        "content": "<p>The government plans to extend the tenor of Mortgage Purchase Loans\n(KPR) to 30 years, raising questions about potential increases in\nnon-performing loans (NPLs) or bad debt risk. However, SMF\u2019s Chief\nFinancial and Risk Management Officer Bonai Subiakto argues that a\nlonger tenor could actually enhance affordability and access to housing\nfinance. He explains that the main aim of extending the KPR tenor is to\nboost affordability as well as access for people to obtain a home. \u2018With\nthe same interest rate, a longer tenor will surely lower the\ninstalments. As a result, more people will be able to access KPR,\u2019 Bonai\nsaid at a press conference in Jakarta on Wednesday, 4 March 2026. He\nadded that lighter instalments also help people plan their long-term\nfinances. With a longer tenor and relatively stable instalments, people\nare seen as having more room to manage their expenditures. Regarding NPL\nrisk, Bonai assessed that extending the tenor to 30 years does not have\na direct correlation with an increase in NPL. He explained that\nproblematic loans are generally more related to a drop in purchasing\npower or economic conditions affecting borrowers\u2019 ability to repay.\n\u2018NPLs are usually more linked to the purchasing power of the people.\nWhen income falls or an economic shock occurs, that typically affects\ncredit quality,\u2019 he said. In addition, he added that year-on-year income\ngrowth can help maintain borrowers\u2019 ability to pay, while instalments\nremain relatively stable due to the longer tenor. Nevertheless, Bonai\nacknowledged that extending the KPR tenor requires adequate sources of\nlong-term funding. He emphasised that one of SMF\u2019s primary roles is to\nprovide long-term financing for the housing finance sector to address\npotential tenor misalignment. This effort is carried out through various\nschemes, including disbursing long-term funds and risk sharing with\ninvestors through financing instruments in the financial market. Bonai\nadded that experience during the Covid-19 pandemic showed that the\nquality of housing financing remained relatively stable despite economic\npressures. Consequently, Bonai assessed that the 30-year KPR tenor\npolicy could actually create greater stability for both debtors and\nfinancing institutions.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/is-a-30-year-mortgage-repayment-really-at-risk-of-boosting-non-performing-loans-1772694306",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}