BP Tapera: 40-Year Tenure Subsidised Mortgage Scheme Expands Recipient Reach

Jakarta (ANTARA) - The Public Housing Savings Agency (BP Tapera) has revealed that the subsidised mortgage (KPR) scheme with a repayment period of up to 40 years expands the reach of beneficiaries for subsidised housing, making it accessible to more people.

BP Tapera Commissioner Heru Pudyo Nugroho explained that extending the tenor to 40 years will broaden the range of subsidised housing beneficiaries because the public’s repayment capacity becomes more manageable.

“The longer the instalment period, the lighter the monthly payments. Thus, people who previously did not meet the banking repayment requirements now have a greater opportunity to obtain subsidised housing,” Heru said in a statement in Jakarta on Wednesday.

With the longer repayment period, monthly instalments for subsidised housing are estimated to become significantly lighter, ranging from approximately Rp500,000 to Rp700,000 per month. This scheme is expected to help more people, including those earning around Rp2.8 million per month, to own their first home.

Under the proposal, the fixed interest rate for subsidised housing remains unchanged, at 5 per cent for landed houses and 6 per cent for flats throughout the financing period. With this scheme, the public need not worry about future interest rate changes.

Previously, Minister of Housing and Settlement Areas (PKP) Maruarar Sirait stated that the subsidised mortgage scheme with a tenure of up to 40 years had been agreed upon and was ready for implementation. Ara said the decision was taken during a limited meeting of the Public Housing Savings Agency (Tapera) Committee with Finance Minister Purbaya Yudhi Sadewa, Manpower Minister Yassierli, and BP Tapera Commissioner Heru Pudyo Nugroho.

According to him, the committee approved the implementation of a KPR tenure of up to 40 years as a follow-up to President Prabowo’s directive to provide a more affordable housing financing scheme for the public. He emphasised that the government ensures the scheme is not only beneficial for the public but can also be implemented in a sound and sustainable manner by banks as the financing distributors.

In addition to agreeing on a longer tenure, the government also decided to keep the interest rate for subsidised landed house mortgages fixed at 5 per cent despite an increase in the BI-rate.