Central Java reports housing credit realisation reaches Rp4.96 trillion

The Central Java Provincial Government has stated that the realisation of its housing credit programme has reached Rp4.96 trillion, benefiting a total of 28,275 borrowers.

Governor of Central Java Ahmad Luthfi, speaking in Batang on Thursday, said the housing credit programme benefits lower-income communities, particularly those in the first, second, third and fourth income deciles, while supporting government efforts to help people own decent housing.

“The President and the Minister of Housing and Settlement Areas have appreciated the Housing KUR (people’s business credit) in Central Java. Bank Jateng has also been recognised because it is the highest in Indonesia,” he said.

According to him, the programme is indeed a shared priority, including for Bank Jateng, which is one of the banks handling KUR for micro, small and medium enterprises.

The borrowers’ professions, he said, vary, ranging from civil servants (ASN), the self-employed, private-sector employees, to informal workers.

He said housing credit at Bank Jateng is considered affordable, with an interest rate of 5 per cent per year, plus a subsidy of Rp4 million, exemption from the Land and Building Acquisition Duty (BPHTB), and instalment terms of 15 and 20 years.

“This is for prospective borrowers with an income below Rp8 million,” he said.

The programme, he said, is in line with Governor Ahmad Luthfi’s instruction to support the central government’s three million homes programme.

“In Central Java, Bank Jateng in particular is also being pushed to implement this programme. The Governor is very enthusiastic and has several times held mass contract-signing ceremonies together with Bank Jateng for mass uptake of FLPP-subsidised mortgages,” he said.