Housing Minister Extends Home Loan Tenor to 30 Years

Cikarang, West Java (ANTARA) – The Minister of Housing and Settlement Areas (PKP), Maruarar Sirait, has decided to extend the subsidy housing loan tenor to 30 years.

‘Yesterday we decided with BP Tapera that the tenor has so far been a maximum of 20 years, following the instruction of President Prabowo Subianto that we must be pro-people, we are increasing the instalments for the Indonesian people to 30 years, not 20 years any more,’ said Minister Maruar, or known as Minister Ara, during a land visit in Cikarang, West Java, on Sunday.

In addition to the president’s directive, the decision is also to push the realisation of the 3 Million Homes Programme.

Minister Ara believes that a longer credit tenor can make housing more affordable and ease the burden of mortgage repayments for the public.

In addition to extending the credit tenor, the government is also preparing various other measures to accelerate the construction of affordable housing, including land provision and financing schemes involving various parties.

One of them is synergy with Lippo Group, which donated three parcels of land to the government. These lands are planned to be used to build vertical housing with a target of 140,000 units.

He described the extension of the tenor as an important breakthrough in the national housing finance programme.

This step is part of the government’s efforts under President Prabowo Subianto to broaden access to more affordable home ownership for low-income households (MBR) and lower-income households (MBT).

The policy complements various incentives already provided by the government, such as exemption from Land and Building Acquisition Duty (BPHTB), exemption from Building Permit (PBG) for MBR, and Government-Shouldered VAT (DTP) for purchases of new houses or apartments worth up to Rp2 billion extended to 2027.

Finance Minister Purbaya Yudhi Sadewa also supported the policy. He said the tenor extension is an effective strategy to widen access to housing credit.

‘We support the steps of the PKP Ministry and BP Tapera to extend the tenor to 30 years. This will make instalments cheaper, down payments lower, and make it easier for people to buy homes,’ Purbaya said.