Government Prepares 30-Year Subsidy Housing Instalment Policy
The Minister of Housing and Settlement Maruarar Sirait has announced that the government is preparing a new policy to extend the maximum tenure for subsidised housing instalments to 30 years. He is confident that this will represent an important breakthrough in the national housing finance programme.
“Until now the maximum tenure has been 15 or 20 years. We are now extending it to 30 years so that instalments become lighter. This is tangible evidence of the government’s commitment to the people,” Sirait stated in a written statement in Jakarta on Friday, 27 March 2026, according to Antara news agency.
The extension of instalment tenure is part of the government’s efforts under President Prabowo Subianto to expand access to affordable housing for low-income households (MBR) and middle-income households (MBT).
The policy complements various other benefits already provided by the government, including exemption from Land and Building Rights Acquisition Tax (BPHTB), exemption from Building Permit Approval (PBG) for low-income households, and Government-Borne Value Added Tax (VAT) for purchases of new homes or apartments valued up to Rp 2 billion, which has been extended through 2027.
Beyond low-income households, the government is also preparing a special financing scheme for middle-income households (MBT) with a fixed interest rate of 7 per cent over 15 years and tenure of up to 30 years.
Prospective residents would only need to prepare a down payment of 1 per cent, whilst the government bears VAT in full and provides a convenience subsidy of Rp 25 million for initial costs such as fees, notarisation, and insurance.
Regarding this tenure extension policy, Finance Minister Purbaya Yudhi Sadewa expressed his support. “We support the initiative of the Ministry of Public Works and the Housing Finance Board to extend the tenure to 30 years. With this, instalments will be cheaper, down payments can be lower, and it becomes easier for people to buy homes,” he said.
According to Purbaya, this policy will encourage banks to expand financing services with longer tenures. “If instalments are lighter, people’s purchasing power increases, the housing sector grows faster, and the economy benefits too.”
With this 30-year tenure extension policy, the government hopes that more Indonesians can own decent and affordable housing, in line with President Prabowo’s commitment to providing homes for all Indonesian people.