BTN Distributes Home Loans to 6 Million Units for Near-Poor Households
The Director General of PT Bank Tabungan Negara (Persero) Tbk, Nixon LP Napitupulu, stated that the bank has distributed home purchase loans (KPR) for 6 million residential units to low-income households in the third income decile throughout Indonesia. “For decile 3 borrowers, BTN’s subsidised KPR programme covers 6 million homes from the beginning of the programme,” Nixon LP Napitupulu said, as quoted from Antara on Sunday, 24 May 2026.
He noted that KPR financing is targeted at assisting low-income communities (MBR) in the third decile and above. In implementing various government assistance programmes, households in the third income decile are categorised as near-poor communities.
“There are 10 income deciles, so it can be said that only deciles 1–2 find it most difficult to access housing credit assistance, whilst deciles 3–8 are supported through KPR,” Nixon said.
As support for poor communities in deciles 1 and 2 who cannot access banking credit for adequate housing, the government provides the Self-Help Housing Stimulus Assistance (BSPS). He stated that the BSPS programme in 2026 targets 400,000 households throughout Indonesia, with allocation of Rp 20–25 million for each beneficiary.
To improve low-income households’ access to housing finance, the government is also examining extended mortgage schemes with terms of up to 40 years. Nixon hopes this scheme can also benefit households in deciles 1 to 2, not only decile 3 and above. “Today the government is examining a KPR financing scheme of up to 40 years. Hopefully, deciles 1–2 can benefit from this long-term mortgage scheme eventually. This is a method to increase housing finance penetration for low-income communities,” he said.
The Minister of Housing and Settlement (PKP), Maruarar Sirait, said he is preparing regulations for an extended KPR scheme with terms of up to 40 years in accordance with President Prabowo Subianto’s directive. He stated that the government is still running simulations and preparing various supporting regulations before the extended-term policy is formally announced to the public.
“This can certainly reduce monthly instalments. With 40 years, a subsidised house plot with a 10-year term currently has an instalment of around Rp 1.7 million, with 15 years Rp 1.4 million. With 20 years it might be Rp 1.1 million, and with 40 years it could be cheaper at around Rp 800,000–900,000,” he said.