BTN CEO: 6 Per Cent Subsidised Mortgage Rate to Assist Lower-Middle Class

The President Director of PT Bank Tabungan Negara (Persero) Tbk, Nixon L.P. Napitupoll, stated that the government’s plan for subsidised mortgages with a 6 per cent interest rate for individuals with a fixed income of around Rp17 million can assist the lower-middle class in owning permanent housing.

“Yes, it is for the lower-middle class. There are also low-income communities (MBR) defined in the ministerial regulations. Specifically, the 5 per cent subsidised mortgage rate is intended for MBR to ensure fairness. For the lower-middle class, a 6 per cent interest rate appears more appropriate. A 6 per cent fixed mortgage rate with a 20-year tenure is actually very affordable, as is a fixed rate with an option for a tenure of up to 40 years,” Nixon said in Jakarta on Tuesday.

According to him, the policy of subsidised mortgages with low interest rates and very long tenures represents a breakthrough. The government recognises that the lower-middle class faces difficulties in owning permanent homes, particularly for those living in major cities such as Jakarta. The government has also invited BTN to participate in discussions regarding this matter.

“That is the actual reason why the government is introducing this policy. We were also invited to discuss it. I agree that this targets the lower-middle income segment, specifically the youth and millennials. With this package, the lower-middle class will be able to reach homeownership,” said Nixon.

For information, the Government is preparing several economic stimulus policies for the fourth quarter of 2026, focusing on protecting public purchasing power, expanding employment opportunities, and ensuring business sustainability.

In the housing sector, this includes the extension of the VAT DTP (Value Added Tax Borne by the Government) facility until 2027 for houses up to Rp2 billion, as well as VAT DTP on the price portion up to Rp2 billion for houses valued up to Rp5 billion.

The Government is also preparing subsidised mortgages with a 6 per cent interest rate for individuals with a fixed income of approximately Rp17 million for houses up to Rp500 million.

These various priority programmes were agreed upon during a coordination meeting led directly by President Prabowo Subianto, alongside Coordinating Minister for Economic Affairs Airlangga Hartarto, Finance Minister Suahasil Nazara, and leaders of relevant technical ministries and agencies at the State Palace in Jakarta.