Celios: Policy to Maintain Subsidised Mortgage Interest Rates is Appropriate

Economist Nailul Huda from the Center of Economics and Law Studies (Celios) has assessed that the government’s policy of maintaining the subsidised mortgage (KPR) interest rate for low-income communities (MBR) is appropriate. “Therefore, the government is correct not to raise the subsidised mortgage interest rate, even though Bank Indonesia (BI) has raised its benchmark rate,” Nailul said when contacted by ANTARA in Jakarta on Wednesday. According to him, amidst the current economic conditions where purchasing power is weakening, the government’s policy of keeping the subsidised mortgage interest rate at 5 per cent helps ease the burden on the public. “The People’s Housing Credit (KPR) for subsidised homes is a government programme to provide housing for low-income communities. So there must be government support for people who have taken or will take out a subsidised mortgage,” he said. For context, Minister of Housing and Settlement Areas (PKP) Maruarar Sirait has confirmed that the interest rate for subsidised housing will not increase and will remain at a flat rate of five per cent from the beginning to the end of the instalment period. Maruarar, known as Ara, said that despite the increase in the BI Rate, the government is maintaining the interest rate for the Housing Financing Liquidity Facility (FLPP) at 5 per cent so that people can obtain homes with affordable instalments. Ara considers the KPR housing financing programme with the FLPP scheme to be in high demand among developers and to make it easier for the public to own liveable homes. The availability of housing financing through KPR FLPP, he added, is a concrete step by the government to encourage people to own liveable and affordable homes. Banks and housing developers have also frequently requested that the PKP Ministry continue the KPR FLPP programme to support the success of the 3 Million Homes Programme, in line with the vision and mission of President Prabowo Subianto.