Home Ownership Loans with Terms up to 40 Years to Be Introduced

The government is preparing regulations for a home ownership loan (KPR) scheme with terms of up to 40 years. This was confirmed in accordance with directives from President Prabowo Subianto.

Minister of Housing and Settlement Areas (PKP) Maruarar Sirait (Ara) stated that simulations and preparations for various supporting regulations are being conducted before the long-term tenor policy is officially announced to the public in the near future.

“We are preparing it. We are simulating and preparing it. In due time, we will convey it to the public,” said Ara when met after a meeting with Bank BSN President Director Alex Sofjan Noor, which discussed subsidised housing financing in Jakarta, on Wednesday, 13 May 2026.

She revealed that discussions on the 40-year KPR tenor scheme are being conducted intensively, including through meetings held with relevant parties in recent days. The policy is a direct directive from the President, so the government’s current focus is no longer on discussing the concept, but on ensuring its implementation is effective and on target.

“Last time, we had a meeting three days ago, on Friday night, late at night we (met). Later, in due time, we will announce it. (The policy plan) is not for discussion, but for implementation,” she said.

The government, she continued, is still listening to input from various parties in the housing ecosystem, such as banks, developers, consumers, and the National Housing Savings Management Agency (Tapera). Ara emphasised that the 40-year tenor scheme will be optional, so the public can still choose shorter terms according to their abilities and needs.

Furthermore, she explained that the public will still have the option to choose 10-year, 20-year, or 30-year terms, so payment instalment flexibility remains a concern of the government in the policy. The long tenor is deemed suitable for young people such as new civil servants or members of the TNI and Police who are just starting their careers and need light instalments.

She added that the scheme allows debtors to change the loan tenor in the middle of the instalment period, so the public can still accelerate repayment according to their respective financial capabilities.

Ara also assured that the public will be allowed to repay the credit faster if their financial condition permits, without being fully bound by the initial loan tenor.