BSN CEO Ready to Accelerate Funding for 40-Year Mortgages
JAKARTA - The President Director of PT Bank Syariah Nasional or BSN, Alex Sofjan Noor, stated that the home ownership loan (KPR) scheme with a tenor of up to 40 years remains viable as long as it is supported by appropriate funding sources.
“Everything is feasible. As long as the funding matches, it’s still feasible,” Alex told Kompas.com at his office in Jakarta on Wednesday (13/5/2026).
According to him, the main challenge in long-term KPR financing does not lie in the 40-year repayment tenor, but rather in the suitability of the funding sources used by the bank.
“Now, the problem isn’t the 40-year period; we need to find funding that is long-term,” he said.
Alex also revealed information regarding sources of funds with long tenors that can support such financing.
Alex emphasised that as long as the funding structure and credit tenor can be aligned, the 40-year KPR scheme poses no issue for the banking sector.
“We’ve faced it head-on; no problem,” Alex stated.
Previously, the Minister of Housing and Settlement Areas (PKP), Maruarar Sirait or Ara, expressed readiness to draft new regulations regarding the tenor of subsidised home ownership loans (KPR) up to 40 years for workers.
This step is said to be a direct instruction from President Prabowo Subianto to lighten the instalment burden for workers.
Ara mentioned that the government had previously extended the subsidised KPR tenor from 20 years to 30 years.
However, following instructions from Prabowo, the government is now preparing new regulations so that the repayment tenor can reach 40 years.
“If the President has ordered it, we had just gone from 20 (years) to 30 years. The President is even greater; from 30 (years) to 40 years, we’ll change the regulations again according to President Prabowo’s instructions,” Ara explained while attending a tree-planting event at Taman Kehati, Kota Baru, Lampung, on Thursday (7/5/2026).
According to her, the policy aims to help the public by making the home instalment burden lighter.