BP Tapera Officially Provides KPR FLPP with 40-Year Tenor: Lighter Instalments, Fixed 5% Interest

The Public Housing Savings Management Agency (BP Tapera) has officially provided a Kredit Pemilikan Rumah (KPR) Sejahtera Housing Finance Liquidity Facility (FLPP) scheme with a tenor option of up to 40 years. The policy is expected to further broaden access for low-income communities, including Islamic preachers and Quran teachers, to own decent homes with lighter instalments. Acting Head of BP Tapera’s Financing Marketing Division, Muhammad Abdul Ghoni, stated that the extended tenor had received approval from the BP Tapera Committee and the Minister of Housing and Settlement Areas. He explained that the longer tenor significantly reduces monthly instalments, making it more affordable for the public. A key advantage of the FLPP scheme is not only the lengthy tenor but also the certainty of financing, as it applies a fixed interest rate of 5 percent until the credit is fully paid off, shielding borrowers from potential interest rate hikes common in commercial financing. Abdul Ghoni noted that the scheme provides flexibility, allowing debtors who take a 40-year tenor to make early repayment after five years of the contract without losing the programme’s benefits. He assessed that this scheme is particularly relevant for informal sector workers such as preachers, micro, small, and medium enterprise (MSME) actors, and self-employed individuals who often face challenges accessing housing finance. He reminded the public that the FLPP subsidy can only be utilised once in a lifetime, urging those who meet the requirements to seize the opportunity. To facilitate public access, BP Tapera is collaborating with Bank Syariah Nasional (BSN) as a distributing bank, with an administrative fee set at Rp500,000 and a down payment provision of only 0.5 percent of the financing value.