Government Prepares Regulations for 40-Year Mortgage Tenor

Housing and Settlement Areas Minister Maruarar Sirait stated that the government’s plan to extend the home ownership credit (KPR) tenor to 40 years will ease instalments for the public. “Of course, this can lighten the instalments. If 40 years, like the current subsidised landed house if 10 years around Rp1.7 million instalment, 15 years instalment Rp1.4 million. If 20 years maybe Rp1.1 million and if 40 years it can be even cheaper around Rp800-900 thousand,” said Maruarar Sirait in Bandarlampung, Thursday, 7 May 2026, as reported by Antara. He said President Prabowo Subianto has ordered the KPR tenor to be extended from 30 years to 40 years. Therefore, Maruarar said, the government will adjust the existing regulations. He continued that the government is coordinating with relevant parties to support the plan to extend the KPR period to 40 years. “Regulations will be prepared soon. We will create the formula for 40-year KPR. And communication is needed with developers, consumers, banking, all this ecosystem must coordinate so that the rules can run,” he said. According to Maruarar, besides easing instalments, extending the KPR tenor to 40 years can also expand the property market. “This is a form of government support for its people,” he said.