40-Year Mortgage Scheme: Workers Earning Rp 2 Million Can Pay Monthly Instalments of Around Rp 700,000

A subsidised mortgage (KPR) scheme with a tenure of up to 40 years is considered capable of providing opportunities for individuals earning around Rp 2 million per month to own a home with monthly instalments of approximately Rp 773,154. Sid Herdi Kusuma, Deputy Commissioner for Tapera Fund Utilisation, stated that analysis by the Public Housing Savings Fund Management Agency (BP Tapera) shows that extending the tenure of subsidised mortgages makes monthly instalments lighter and more affordable.

“It is true that by extending subsidised mortgages to 40 years, we will open wider access for low-income communities to achieve home ownership,” Sid said during a meeting with five developer associations at the Ministry of Housing and Residential Areas (PKP) office in Jakarta on Monday (18/05/2026). He noted that the reduction in instalment amounts is one of the primary impacts of this long-term tenure.

BP Tapera presented a simulation of the ability of low-income communities (MBR) to access subsidised housing through the Housing Financing Liquidity Facility (FLPP) scheme. Based on data from the 2026 National Labour Force Survey (Sakernas) by BPS, the agricultural sector recorded an average monthly income of approximately Rp 2.43 million. Meanwhile, 2026 data from the Ministry of Manpower (Kemenaker) shows that Banjarnegara Regency is one of the regions with the lowest wage levels.

However, according to Sid, communities in these income brackets can still access subsidised mortgages if the financing tenure is extended to 40 years. “The lowest income groups in these regencies and sectors can access FLPP mortgages. The estimated monthly instalment is only Rp 753,154,” he said. Consequently, BP Tapera believes the 40-year tenure scheme will expand the reach of home ownership for low-income earners while easing the burden of monthly instalments.