Announcement: Installments for Subsidised Housing to be Extended to 30 Years

The government, through the Ministry of Housing and Urban Development (PKP), is preparing a new policy in the form of extending the tenor of subsidised housing installments to 30 years.

Minister of PKP, Maruarar Sirait, stated that this policy is considered a breakthrough to expand access to homeownership for low-income (MBR) and middle-income (MBT) communities.

Ara, as he is affectionately known, said that extending the tenor will make installments for public housing more affordable.

“So far, the maximum tenor has been 15 or 20 years. Now we are extending it to 30 years so that installments become more affordable. This is a real form of the government’s commitment to the people,” said Ara after the Tapera Committee Meeting in Jakarta, quoted from the official Instagram account of the Ministry of PKP, Thursday (26/2/2026).

This is expected to reach more people who have been constrained by their ability to pay installments.

This policy is also part of the government’s efforts to accelerate homeownership for MBR and MBT, especially in the face of rising property prices and limited purchasing power.

In addition to extending the tenor, the government is also preparing other facilities such as exemption of BPHTB, exemption of PBG for MBR, and VAT Borne by the Government (DTP) for new houses or apartments up to IDR 2 billion, which will be extended until 2027.

Minister of Finance, Purbaya, welcomed this move and said that the policy would effectively expand access to public housing credit.

“With a longer tenor, installments become cheaper, down payments are lighter, and people can more easily own a home,” he said.

The government hopes that this policy will accelerate the equitable distribution of decent and affordable housing, in line with President Prabowo Subianto’s commitment to providing homes for all Indonesian people.