Government Prepares Scheme to Extend Tenor of Subsidised Home Loan Repayments to 30 Years
The GOVERNMENT, through the Ministry of Housing and Settlement Areas (PKP), is designing a new policy in the form of extending the tenor of subsidised home loan repayments to 30 years. This policy aims to ease the burden of repayments for low-income (MBR) and middle-income (MBT) communities, and to expand access to more affordable home ownership.
Minister of PKP, Maruarar Sirait, said that this step is a breakthrough in the national housing finance program.
“Previously, the maximum tenor was only 15 or 20 years. With the extension of the tenor to 30 years, the repayments will be lighter. This is a real form of the government’s commitment to the people,” he said after the Tapera Committee Meeting in Jakarta, Thursday (26/2).
In addition to extending the tenor, this policy also complements a number of other incentives, such as exemption of Land and Building Acquisition Tax (BPHTB), exemption of Building Permit Fees (PBG) for MBR, and exemption of Value Added Tax (VAT) Borne by the Government (DTP) for the purchase of new homes or apartments up to IDR 2 billion, extended until 2027.
In addition, the government is also preparing a special financing scheme for MBT. This scheme offers a fixed interest rate of 7% for 15 years and a tenor of up to 30 years, with a down payment of only 1%.
The government also provides a subsidy of IDR 25 million for initial costs such as provision, notary, and insurance, and bears the VAT in full.
Minister of Finance, Purbaya, expressed his support for this policy, stating that the extension of the tenor will expand access to housing credit.
“With a longer tenor, the repayments become cheaper and the down payment is lower. This will make it easier for people to buy a house,” said Minister Purbaya.
He also added that this policy is expected to encourage the housing sector to grow faster and have a positive impact on the economy.
With this policy, the government hopes that more Indonesians will be able to own decent and affordable homes, in line with President Prabowo Subianto’s commitment to provide housing for all Indonesian people. (Z-10)