Discussions on Prabowo's Plan for Mortgage Instalments Below Rp 1 Million Per Month

The government is preparing new regulations regarding the extension of Home Ownership Credit (KPR) tenures to up to 40 years. This policy is expected to make housing instalments more affordable for the public, particularly for the subsidised housing segment. Minister of Housing and Settlement Areas (PKP) Maruarar Sirait stated that this directive follows President Prabowo Subianto’s instructions to broaden access to home ownership for the public. “The President has ordered the extension from 30 years to 40 years for KPR, and we will certainly implement and adjust the regulations accordingly,” emphasised Ara, the familiar name for Maruarar, quoted from Antara on Friday (8/5/2026). According to Maruarar, the longer tenure scheme will directly impact the monthly instalment amounts, making them lighter compared to the current tenures. “This will certainly lighten the instalments. For subsidised landed houses now, if it’s 10 years, the instalment is around Rp 1.7 million, 15 years Rp 1.4 million. If 20 years, perhaps Rp 1.1 million, and if 40 years, it could be even cheaper, around Rp 800-900 thousand,” he said. “The regulations will be prepared soon; we will formulate them for 40-year KPR. And coordination is needed with developers, consumers, banks—all stakeholders in this ecosystem must coordinate so that the rules can be implemented,” he added. Maruarar assessed that, besides helping the public obtain more affordable instalments, this policy also has the potential to expand the national property sector market. “This is the government’s support for its people,” he stated. Previously, President Prabowo Subianto expressed his commitment to facilitating low-income individuals in owning homes. One of the schemes being promoted is extending the KPR instalment tenure to reduce the monthly payment burden. In his speech at the International Labour Day commemoration at Monas, Jakarta, Prabowo assessed that the current home financing scheme is still quite burdensome for workers. He added that a longer instalment tenure is considered realistic to help labourers, farmers, and fishermen own their own homes. “The instalments, if possible, 20 years; if not 20 years, 25 years. If not settled in 25 years, 30 years. If not, 35 years, 40 years,” he explained. “Because labourers won’t run away anywhere, right? Farmers and fishermen won’t run away anywhere,” he emphasised. Prabowo noted that so far, many workers allocate around 30 percent of their income for house rentals. According to him, that budget should be redirected to instalments for owning their own homes. “From the previous 30 percent for rent, we reduce it; that is for instalments on your own home,” said Prabowo.