Government Ensures Subsidised Housing Loan Interest Rate Will Not Rise
The government has ensured that the interest rate for subsidised home ownership loans (KPR) through the Housing Financing Liquidity Facility (FLPP) scheme will remain at 5 per cent. The policy is being maintained despite an increase in the Bank Indonesia benchmark rate (BI Rate).
Minister of Housing and Settlement Areas (PKP) Maruarar Sirait stated that the government is keeping the FLPP interest rate at a flat 5 per cent until the end of the credit period so that low-income communities can still access housing with affordable monthly instalments.
“We are ensuring the state is present and takes the side of the people, especially low-income communities. Even though there are economic dynamics and an increase in the BI Rate, the FLPP interest rate is being maintained at 5 per cent so that people still have access to decent and affordable housing,” Maruarar said in Jakarta on Friday.
Maruarar also confirmed that the policy of extending FLPP mortgage tenors to up to 40 years, as directed by President Prabowo Subianto, can be implemented in accordance with applicable regulations. According to him, discussions regarding this policy have been carried out intensively with various related parties.
“Thank you for the support from Danantara, Mr Rosan, and BP BUMN, Mr Dony. Everything is still on track and there are several issues we are preparing regarding Meikarta, and on Monday I will go to the BPKP to ensure all processes run according to existing rules,” he said.
During a meeting with Danantara Indonesia, the government also discussed support for the 3 Million Homes Programme, which is one of the national priority programmes. In addition, the optimisation of state-owned enterprise (BUMN) apartment assets to support the provision of housing for the community was discussed.
Maruarar revealed that the realisation of FLPP distribution to date has reached 78,277 housing units, or approximately 22.36 per cent of the 350,000-unit target for 2026.
The government and Danantara also discussed the progress of completing the Meikarta apartment project. The discussions covered the grant process, acceleration of land legality due diligence, assignment of the executing BUMN, and the determination of unit selling prices so that the public socialisation process can be carried out soon.
In addition, the meeting also discussed the drafting of a Presidential Instruction (Inpres) initiated by Danantara to accelerate the resolution of various strategic issues in the housing and settlement areas sector.