Jakarta, CNBC Indonesia \u2014 Disbursement of subsidised homes under the\nHousing Financing Liquidity Facility (FLPP) remains sluggish. As of 9\nOctober 2026, 177,161 units had been financed, or about 50.6% of this\nyear\u2019s target of 350,000.<\/p>\n
With less than three months remaining, boosting demand is one of the\nkey challenges in meeting the target.<\/p>\n
The Indonesian Association of Housing and Settlement Developers\n(Himperra) has proposed that the government raise the price ceiling for\nsubsidised homes to Rp500 million. For this segment, developers have\nproposed mortgage rates of around 6%\u20138%, higher than the flat 5% rate\ncurrently offered under the FLPP scheme.<\/p>\n
Himperra chairman Ari Tri Priyono said housing policy needed to\nreflect market demand and people\u2019s ability to buy homes. Simply\nincreasing supply would not be enough if prospective buyers still\nstruggled to access housing suited to their financial means.<\/p>\n
\u201cWe propose expanding the choice of subsidised homes by raising the\nprice ceiling to Rp500 million. For this segment, we propose interest\nrates of around 6%\u20138%,\u201d Ari told CNBC Indonesia on Monday (12 September\n2026).<\/p>\n
The higher ceiling is expected to give developers more scope to offer\nhomes with a wider range of designs, quality and locations. Limited\nhousing options near centres of economic activity have been a persistent\nproblem, particularly for young people who want to live within a\nreasonable distance of work.<\/p>\n
Housing needs are determined not only by the selling price but also\nby whether a home is located suitably for people\u2019s daily activities.\nExpanding the range of subsidised homes could therefore provide an\nalternative for buyers seeking homes with better access to urban\nfacilities.<\/p>\n
\u201cHousing policy needs to keep pace with changing market needs,\npeople\u2019s purchasing power and the challenges faced by developers. The\nslowdown in subsidised home sales cannot be addressed simply by adding\nsupply; it also requires financing innovation and easier licensing,\u201d Ari\nsaid.<\/p>\n
Alongside the price ceiling, Himperra is calling for a review of\nsubsidised mortgage interest rates. One option it has proposed is a\nfixed rate for the first 10 years under certain financing schemes,\ntaking into account borrowers\u2019 economic circumstances and repayment\npatterns.<\/p>\n
\u201cSome subsidised-home buyers are able to repay their loans early when\ntheir economic circumstances improve. Data on these early repayments\ncould inform a review to make government funds more effective and extend\nsupport to other groups of buyers,\u201d Ari said.<\/p>\n
Any changes to the price ceiling or interest-rate arrangements would\nneed to take account of prospective buyers\u2019 ability to make repayments,\nthe sustainability of FLPP funding and protections for low-income\ncommunities. The government must also ensure that a higher price limit\ndoes not make subsidies less accessible to those most in need.<\/p>\n
\u201cWe have submitted proposals to raise the subsidised-home price\nceiling, review interest rates and adjust financing to the Minister of\nHousing and Settlement Areas. We were asked to study them further with\nother developers\u2019 associations,\u201d Ari said.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/subsidised-home-sales-plunge-as-developers-propose-a-solution-1791780669", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }