BP Tapera: Government Strengthens Financing Support Through FLPP Scheme

The government is continuing to strengthen financing support through the FLPP scheme with a target of distributing 350,000 subsidised housing units in 2026. The prospect for the subsidised housing market in the second half of 2026 remains very positive. The high home ownership backlog indicates that the need for housing among low-income communities (MBR) is still very large and has not been fully met. On the other hand, the government continues to strengthen financing support through the FLPP scheme with a target of distributing 350,000 subsidised housing units in 2026. Various policies such as a KPR FLPP tenor of up to 40 years, low fixed interest rates, and easier access to financing for MBR are further increasing the affordability of subsidised housing. These factors are believed to maintain strong demand until the end of the year. BP Tapera recorded that the realisation of subsidised KPR distribution through the FLPP scheme had reached 121,363 units as of 31 July 2026. In addition to the realised units, tens of thousands of applications are still being processed up to the contract stage. From the supply side, there are currently 21,077 subsidised housing units ready for purchase by the public. Based on the beneficiary group, workers from the labour and private employee sectors dominate with a total of 76,715 subsidised KPR units, followed by the entrepreneur group with 21,192 units. FLPP is a housing finance subsidy programme provided by the government to help low-income people buy homes with a subsidised KPR scheme. Through this programme, the government provides low-cost funds to distributing banks so that people can obtain homes with low interest rates, low down payments, and long tenors.