40-Year Mortgage Becomes Solution for Low-Income Earners to Own Homes, Monthly Payments Drop to Rp700,000

Several housing developer associations have expressed full support for the Housing Financing Liquidity Facility (FLPP) mortgage scheme with tenures of up to 40 years. This policy is considered strategic to expand access for Low-Income Communities (MBR) to possess decent housing while simultaneously reducing the national housing backlog.

The General Chair of the Indonesian Real Estate Association (REI), Joko Suranto, stated that the long tenure is a constructive step to address the housing backlog, which is currently estimated to be between 9.9 million and 15 million units. According to him, a longer loan duration will automatically lighten the monthly expenditure burden on the public.