Government Extends Subsidised Housing Loan Tenure to 30 Years

The Indonesian government has extended the maximum tenure for subsidised housing loans to 30 years, providing greater flexibility for citizens seeking to finance home purchases. Housing and Settlements Minister Maruarar Sirait announced the decision, stating it reflects President Prabowo Subianto’s pro-people agenda and will accelerate implementation of the 3 Million Homes Programme.

“Previously, the maximum tenure was 20 years. Under the President’s directive to prioritise the people’s interests, we have increased the loan tenure to 30 years,” said Minister Sirait during a land site visit in Cikarang, West Java, on Monday, 9 March 2026.

The minister expressed confidence that the extended tenure will reduce monthly instalments and lower house prices, easing the financial burden on citizens. The government is pursuing complementary measures to accelerate affordable housing development, including land provision and multi-party financing schemes.

One notable initiative involves a partnership with Lippo Group, which has donated three plots of land to the government for developing vertical housing units with a target of 140,000 units.

The policy aims to expand housing ownership access for low-income earners (MBR) and middle-income earners (MBT). It complements existing government incentives, including exemptions from Transfer Tax on Land and Building Rights (BPHTB) and Building Approval Permits (PBG) for low-income households, as well as value-added tax exemptions (DTP) for new house or apartment purchases up to 2 billion rupiah, extended through 2027.

Finance Minister Purbaya Yudhi Sadewa endorsed the policy, describing the tenure extension as an effective strategy to broaden access to affordable housing credit. “We support the Housing Ministry and BP Tapera’s extension of tenure to 30 years. This will lower instalments, reduce down payments, and make home purchases more accessible to citizens,” he said.