JAKARTA \u2014 The government is preparing a risk\u2011mitigation scheme in the\nform of insurance protection to support the implementation of the\nMortgage Ownership Credit (KPR) with tenures of up to 40 years. The move\nis to anticipate risks during the loan period, from repayment failures\ncaused by economic constraints to the risk of a borrower\u2019s death.<\/p>\n
Director General of Urban Areas at the Ministry of Housing and Human\nSettlements (Kementerian Perumahan dan Kawasan Permukiman, PKP) Sri\nHaryati explained that discussions on the 40-year tenor are not yet\nfinal because the government is still studying various protection\nschemes with developers and banks.<\/p>\n
\u2018Actually it hasn\u2019t reached final because there are several other\ndiscussions. Because when talking about 40 years there will also be\ninsurance that will extend,\u2019 Sri said at her office in Jakarta, on\nMonday (18 May 2026).<\/p>\n
\u2018Looking at the average lowest income, and then looking at the\nmaximum capacity to repay from income, that has all been checked,\u2019 Sri\nsaid.<\/p>\n
She explained that the longer tenor is designed to stay within the\naffordability bounds for subsidised housing loans.<\/p>\n
\u2018We have also prepared a scheme for 40 years that fits their ability\nto service instalments,\u2019 she added.<\/p>\n
However, the government acknowledges that the longer tenor carries\nadditional risks that need to be mitigated from the outset. Therefore,\nfurther discussions will be held with various parties.<\/p>\n
\u2018We also must mitigate the risks that exist. Therefore, we will have\nanother round with developers, banks and others,\u2019 Sri said.<\/p>\n
Meanwhile, Deputy Commissioner for Use of TAPERA Funds (Tapera) Sid\nHerdi Kusuma said that the risk-mitigation instruments under\nconsideration include several types of insurance protections.<\/p>\n
\u2018Regarding the risks during the tenor, as the Director General has\nalready stated, we will discuss it more thoroughly,\u2019 Sid said at the\nsame event.<\/p>\n
He noted that the protection scheme is projected to address a range\nof potential risks during the 40-year KPR tenor.<\/p>\n
\u2018Among them are credit insurance, life insurance and fire insurance,\nwhich seem likely to address how to mitigate the risks during the KPR\ntenor,\u2019 Sid said.<\/p>\n
\u2018This programme\u2019s main aim is to open access for the public to own\ntheir first home as soon as possible,\u2019 he concluded.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/special-insurance-to-shield-against-40-year-mortgage-defaults-1779546288", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }