Government Prepares 40-Year Tenor Subsidised Mortgage Scheme, Here's the Progress

Minister of Housing and Settlement Areas (PKP) Maruarar Sirait has stated that a mortgage tenor scheme for subsidised housing of up to 40 years is being prepared to provide greater ease for the public. “The principle is that this is no longer up for negotiation, but must be implemented with proper governance. It is a directive from the President with a very good objective, namely to make it easier for the people so that their instalments become lower. That is excellent. Now, the question is how the governance can also run well,” Ara said in Jakarta on Wednesday (17/6/2026). He said the plan for the 40-year subsidised mortgage tenor scheme will be discussed within the Committee of the Public Housing Savings Management Agency (Tapera). “We are looking for the right time because it must be discussed together with the Tapera Committee. In the Tapera Committee, there is myself, Finance Minister Purbaya, the Minister of Manpower, and the Financial Services Authority (OJK). Everything has been prepared by Tapera, studied over the past one and a half months, and discussed with banks and the Secondary Mortgage Facility (SMF). It will be submitted and discussed first in the Tapera Committee,” he said. Ara conveyed that the regulation regarding the 40-year subsidised mortgage tenor scheme is expected to be completed this year. For context, the Minister of Housing and Settlement Areas (PKP) Maruarar Sirait stated that the government is currently preparing regulations for a subsidised housing mortgage scheme with a tenor of up to 40 years, in accordance with the directive of President Prabowo Subianto. Ara said the government is still conducting simulations and preparing various supporting regulations before the long-tenor policy is officially announced to the public. He emphasised that the 40-year tenor scheme will be optional, so the public can still choose a shorter tenor according to their respective capabilities and needs. He explained that the public will still have the option of 10-year, 20-year, or 30-year tenors. Therefore, flexibility in instalment payments remains a focus of the government in this policy.