40-Year Mortgage Tenor for Subsidised Housing Needs Price Adjustment
The government has approved a policy extending the tenor of the Housing Financing Liquidity Facility (KPR FLPP) mortgage to 40 years. The policy is expected to broaden access to home ownership for low-income communities (MBR) through more affordable instalments.
PT Alexandra Citra Pertiwi President Director Tuti Mugiastuti appreciated the government’s move to expand access to decent housing. However, she believes the 40-year tenor still needs comprehensive review, particularly regarding financing sustainability and the quality of housing received by the public.
“Personally, I somewhat disagree with a 40-year tenor. The instalments become lighter, but the period is too long. I think the current tenor is actually sufficient,” Tuti said recently.
According to Tuti, the issue of subsidised housing is not solely about the public’s ability to pay instalments. It also concerns building quality and the sustainability of housing supply by developers. Therefore, she considers adjusting the selling price of subsidised houses a more pressing need.
She noted that the current price of subsidised housing is still around Rp185 million. Tuti proposed an increase of approximately 5-7 percent to around Rp212 million. “The current price of subsidised housing is still around Rp185 million. We propose an adjustment, an increase of about 5-7 percent to around Rp212 million. This discussion is also ongoing at REI with various stakeholders. Ideally, there should be periodic price adjustments following the rise in construction costs,” explained Tuti, who is also a board member of DPP REI.
Tuti assessed that a price adjustment is necessary to give developers room to improve building quality amid rising material, land, and construction costs. This would ensure subsidised housing meets community needs while maintaining long-term liveability. She stressed that subsidised housing should not be viewed solely from the perspective of low prices and affordable instalments. The government and stakeholders must also ensure the homes built are decent, comfortable, and relevant to modern society’s needs.
“Subsidised housing must remain decent, high-quality, and relevant to the community’s needs. So, financing policies must go hand in hand with price adjustments and quality improvements,” Tuti said.
Tuti noted that developers have begun improving the quality of subsidised housing, one example being the development of Cluster Livana Park by GCC2 in the Grand Cikarang City 2 area, Cikarang, Bekasi Regency, West Java. The project was developed by Arrayan Group through PT Alexandra Citra Pertiwi as part of a commitment to delivering higher-quality subsidised housing.
This commitment was marked by the first mass credit agreement event for Cluster Livana Park by GCC2 on Saturday, 27 June 2026. Carrying the theme “Subsidised Housing Revolution”, the event was one of GCC2’s efforts to present a new standard of subsidised housing that is more modern, comfortable, and high-value for the community.
“We present Livana Park as a revolution in subsidised housing. Consumers now receive a home with a much more modern facade, more functional layout, improved material quality, and facilities previously synonymous with commercial housing. Our simple goal is to provide maximum satisfaction to every consumer,” Tuti said.
Livana Park is a subsidised housing cluster concept within the Grand Cikarang City 2 area. It is the second subsidised cluster developed in GCC2 after Cluster Alexandra Park in Blok C, which has sold out. Tuti explained that quality improvements at Livana Park include a more modern facade design, more efficient spatial planning, pre-installed back walls, kitchen countertops, sitting toilets, hebel material, a 14-metre-wide main road, children’s playgrounds, and public facilities.
“We want the public to feel that subsidised housing can also look attractive, be comfortable to live in, and have building quality to be proud of. Consumers can just bring their suitcase and move in immediately,” she added.
The first phase of Livana Park development, comprising 242 units, received a positive response from the public. Due to high demand, GCC2 is now opening a second phase with the construction of 249 new units. The mass credit agreement for the second phase is planned to be held again in July 2026.
Besides building quality, Tuti said the location of Livana Park is one of its main attractions. The housing estate is situated in the Grand Cikarang City 2 area, between the large industrial zones of Cikarang and Karawang, and along the Pantura highway corridor, facilitating mobility for workers.
“People are increasingly selective. They are looking for subsidised housing with a good location, good building quality, and an attractive appearance. Livana Park answers those needs,” she stated.
One Livana Park consumer, Safitri Rahmadani, admitted she was interested in choosing the home because its design was considered more modern compared to typical subsidised houses. “The house model is beautiful, contemporary, and the location is strategic. The down payment is light, the instalments are affordable. I am sure I won’t regret choosing Livana Park,” Safitri said.