Housing Loan Scheme (KUR) Ceiling Raised to Rp 50 Trillion, Minister Ara Explains Why
Jakarta, CNBC Indonesia - The government has increased the quota for the Housing People’s Business Credit (KUR Perumahan) to Rp 50 trillion. The figure is up from the previous quota of around Rp 36 trillion.
Minister of Housing and Settlement Areas (PKP) Maruarar Sirait said the additional quota was granted because uptake of the Housing KUR has shown strong growth. The government chose to expand the financing space so that more people can access the programme.
“Housing KUR is under the authority of the Coordinating Minister for Economic Affairs. I was invited on 20 June, and the Minister said uptake is very high. For that reason, I am increasing it from Rp 36 trillion to Rp 50 trillion. Ready? Yes, ready,” Maruarar said at the BPS office in Jakarta on Thursday (13/8/2026).
The decision has consequences for the government because the disbursement target automatically becomes higher. However, Maruarar considers expanding the quota more important than maintaining a better-looking absorption percentage.
“If I wanted to hold at Rp 36 trillion or Rp 34 trillion, absorption might now be at 70%. If I were not ready, that would mean leaving it as it is. But if I did that, it would mean closing off the possibility for more Indonesians to obtain the Housing KUR they badly need,” Maruarar said.
The choice is part of a bureaucratic decision that must weigh the programme’s benefits for the public. The government should not merely chase performance indicators if the consequence is limiting the number of beneficiaries.
Maruarar described the choice as a dilemma in setting programme targets. Keeping the old quota could make the absorption percentage look higher, but the room for the public to obtain housing financing would become narrower.
“If we say, ‘No, Sir, just keep it at Rp 34 trillion or Rp 36 trillion,’ it would be less, wouldn’t it? For my KPI it would also be better. But if I close that off, it means fewer people receive the assistance,” Maruarar said.
Housing KUR is one of the instruments the government is now using to expand public access to housing finance. The programme is also part of cross-ministerial and agency work because its implementation requires support from the banking sector.
Maruarar stressed that housing programmes cannot be run by a single ministry. The government needs to combine policy, financing, data, and local government support so that the programme can reach more people.
“It is better for us at PKP to work even harder, even though our target, which was already high and getting close, drops again because it has gone from Rp 36 trillion to Rp 50 trillion,” Maruarar said.