BP Tapera Explores 40-Year Mortgage Tenor, Enabling Workers Earning Rp 2 Million to Afford Homes
The Indonesian Public Housing Savings Management Agency (BP Tapera) has analysed simulations for subsidised mortgage (KPR) instalments with tenors of up to 40 years, a move designed to expand housing access for low-income communities (MBR).
Sid Herdi Kusuma, Deputy Commissioner for Tapera Fund Utilisation, stated that BP Tapera’s analysis shows that extending the subsidised mortgage tenor can significantly lower monthly instalments, making them more affordable for the public. He presented these findings during a meeting with five developer associations at the Ministry of Housing and Residential Areas (PKP) office in Jakarta on Monday (18/05/2026).
“It is true that by extending subsidised mortgages to 40 years, we will broaden access for low-income communities to achieve homeownership,” said Sid. He noted that the longer tenor makes subsidised housing instalments much lighter compared to previous schemes.
BP Tapera also presented simulations regarding the ability of individuals in low-income sectors to access subsidised housing finance. Based on 2026 data from the National Labour Force Survey (Sakernas) by the Central Bureau of Statistics (BPS), the agricultural sector recorded an average monthly income of approximately Rp 2.43 million. Meanwhile, according to 2026 data from the Ministry of Manpower (Kemenaker), Banjarnegara Regency was identified as one of the regions with the lowest wage levels, reaching Rp 2.32 million.
Sid explained that with a subsidised mortgage tenor of up to 40 years, residents in these sectors and regions can still access the Housing Finance Liquidity Facility (FLPP) scheme. “Those with the lowest incomes in these districts and sectors can access FLPP mortgages. The estimated monthly instalment would be only Rp 773,154,” he said.
Consequently, BP Tapera believes that the long-tenor policy will not only expand the reach of homeownership but also provide instalment relief for low-income earners. “Ultimately, by extending these subsidised mortgages to 40 years, we will expand the reach of FLPP mortgages to the community and provide relief for monthly instalments,” Sid concluded.