BP Tapera accelerates FLPP proposal with tenor up to 40 years

The Housing Fund Management Agency (BP Tapera) is accelerating the proposal for the Housing Financing Liquidity Facility (FLPP) with a plan to extend the financing tenor to up to 40 years.

BP Tapera Commissioner Heru Pudyo Nugroho said the agency is pushing for a single scheme first so that the policy can be implemented promptly.

“So at the moment we are offering a single scheme only. We are extending the tenor to 40 years, for both landed houses and flats,” Heru said in a statement in Jakarta on Monday.

BP Tapera held a coordination meeting at its office in Central Jakarta on Monday to accelerate adjustments to the FLPP fund management scheme for landed houses and public flats.

The meeting discussed the plan to extend the financing tenor to 40 years. For landed houses, the scheme under discussion maintains an interest rate of 5 percent, while flats would use a 6 percent rate with a funding portion of 75:25.

BP Tapera data recorded that FLPP disbursement realisation up to 31 August 2026 reached 139,945 units with a disbursement value of approximately Rp17.41 trillion.

Expert Staff for Financing Systems, Corruption Prevention, and Community Empowerment at the Ministry of Housing and Settlement Areas, Budi Permana, stressed the importance of collaboration and a clear timeline so that the policy can be enjoyed by the public as soon as possible.

“We also need the timeline, so that we have a measure, so that we can convey to the entire public that this policy can be implemented soon,” Budi said.

Minister of Housing and Settlement Areas Maruarar Sirait said the home ownership credit (KPR) scheme with a tenor of up to 40 years aims to make it easier for people to own homes through lighter instalments.

According to Maruarar, the policy is a directive from President Prabowo Subianto aimed at expanding public access to subsidised housing.

He explained that the plan to implement KPR with a tenor of up to 40 years has been discussed with a number of ministries and institutions, including BP Tapera, the Ministry of Finance, the Ministry of Manpower, and the Financial Services Authority (OJK).

Regarding its implementation, Maruarar said the government is still finalising a number of regulations as the legal basis for the policy. He expressed hope that the drafting process will not take long.

Maruarar believes the longer tenor will increase public interest in subsidised housing because the instalment amounts become more affordable.

He added that the government is currently conducting several studies before deciding on the implementation schedule for the 40-year KPR scheme.