40-Year Mortgage Tenure Regulation Under Development

Minister for Housing and Settlement Areas (PKP), Maruarar Sirait, stated that her ministry is currently developing regulations to extend the tenure of Home Ownership Credit (KPR) up to 40 years. Ara, as Maruarar Sirait is affectionately known, explained that extending the KPR tenure to a maximum of 40 years would make monthly bank loan instalments more affordable. The current KPR scheme in Indonesia is 20 years, with some banks offering up to 30 years. “If the President has instructed it, I have just gone from 20 (years) to 30 years. The President is even greater; we will change the regulations again from 30 (years) to 40 years according to President Prabowo’s directives,” Ara emphasised, when met in Bandar Lampung, as quoted on Friday (8/5/2026). She affirmed that whatever President Prabowo mandates to help the people, she will strive to realise it maximally, including the 40-year KPR programme. With the 40-year tenure scheme, according to Ara, instalments for subsidised housing could be reduced below Rp1 million per month or drop to around Rp800,000 to Rp900,000 per month. This amount is almost the same as the average paid by low-income workers for monthly house rentals. In preparing the long-tenure KPR scheme, the Ministry of PKP will invite banks and developers to sit together, so that the policy can be effectively executed. “We will prepare it soon. We will invite the banks, prospective subsidised housing recipients, developers, so that the regulation can be implemented,” Ara revealed. Previously, President Prabowo Subianto stated that economically weak communities, such as labourers, would be facilitated in homeownership. One of the efforts is to make KPR instalments as light as possible. “Brothers and sisters, earlier I said 30 percent of income for rent (house). Later, we will ensure that you will own that house,” Prabowo said during the International Labour Day commemoration at Monas, Jakarta. One of the efforts he will undertake so that the lower economic class can own housing is to make KPR instalments as light as possible, for example by extending the tenure up to 40 years. “The instalment, if possible, 20 years; if not 20 years, 25 years. If not settled in 25 years, 30 years. If not possible, 35 years, 40 years,” he stated.