PT Bank Tabungan Negara (Persero) Tbk (BTN) has confirmed that banks\nare capable of disbursing Housing Financing Liquidity Facility (FLPP)\nsubsidised mortgages with tenors of up to 40 years, as the majority of\nthe funding source is provided by the government. BTN Director Hirwandi\nGafar stated that this funding scheme enables banks to offer long-term\nfinancing to low-income communities (MBR). \u201cFor FLPP, whether the bank\nis strong enough or not, of course, in this case, it is capable. Because\nthe majority of the funding source is provided by the government through\nthe housing financing facility,\u201d Hirwandi said during the ISEI Jakarta\nCommissariat Perbanas National Seminar in Jakarta on Tuesday.<\/p>\n
According to him, this financing is relatively safe for banks as long\nas the government places the funds in accordance with the credit period\ngranted. \u201cNo matter how long, as long as the funds are placed in the\nbank by the government according to that period, it is quite safe,\u201d he\nsaid.<\/p>\n
Nevertheless, Hirwandi noted that the implementation of a 40-year\ntenor must still consider the legal aspects of the land, particularly\nthe validity period of the land title underlying the home ownership. He\nexplained that a Building Use Right (SHGB) certificate has a maximum\nvalidity period of 30 years, although it can be extended for 20 years\nand renewed in accordance with applicable regulations. For flats or\nvertical housing, he added, the ownership period also depends on the\nstatus and duration of the Right to Manage (HPL) or SHGB on the land\nwhere the building stands. \u201cThe issue is indeed from the certificate\nperiod side. If it is SHGB, the maximum period is 30 years, although it\ncan be extended for 20 years,\u201d he said.<\/p>\n
He added that this issue does not arise if the house already holds a\nFreehold Title (SHM) certificate. From the public\u2019s perspective,\nHirwandi noted that a longer tenor reduces the monthly instalment\namount. However, the total interest paid over the credit period will\nalso be larger. \u201cFrom the public\u2019s side, they pay more interest. Because\nthe longer the period, the greater the interest paid,\u201d he said.<\/p>\n
Previously, the Public Housing Savings (Tapera) Committee meeting\napproved the implementation of a KPR FLPP tenor of up to 40 years as\npart of efforts to improve the affordability of subsidised housing for\nthe public. The policy maintains the subsidised housing interest rate at\n5 percent for landed houses and 6 percent for flats. The government is\ntargeting the distribution of 350,000 FLPP units in 2026 to support the\nThree Million Houses Programme. The Tapera Management Body (BP Tapera)\nrecorded that as of 23 July 2026, FLPP distribution had reached 111,537\nunits with a financing value of approximately IDR 13.87 trillion. Of\nthis total, 71,250 units, or 63.88 percent, were distributed to private\nsector workers, while 19,254 units, or 17.26 percent, went to\nself-employed workers.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/subsidised-mortgage-tenor-can-reach-40-years-btn-responds-1785236004", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }