Housing Ministry Prepares Extended Tenure Scheme for Subsidised Housing up to 30 Years

The government, through the Ministry of Housing and Settlement (PKP), is preparing a new policy to extend the payment tenure for subsidised housing loans up to 30 years.

Housing Minister Maruarar Sirait stated that extending the tenure represents an important breakthrough in the national housing financing programme. “Previously, the maximum tenure was 15 or 20 years. Now we are extending it to 30 years so that instalments become lighter. This is a genuine demonstration of the government’s commitment to the people,” said Minister Sirait in a statement in Jakarta on Friday.

This step is part of the government’s efforts under President Prabowo Subianto to expand access to affordable housing for low-income households (MBR) and middle-income households (MBT).

Beyond low-income households, the government is also preparing a special financing scheme for middle-income households (MBT) with a fixed interest rate of 7 per cent for 15 years and tenure of up to 30 years.

Prospective homeowners need only provide a down payment of 1 per cent, whilst the government bears the full value-added tax (VAT) and provides an initial cost subsidy of Rp25 million covering items such as loan processing fees, notarisation, and insurance.

Finance Minister Purbaya Yudhi Sadewa also expressed support for the policy, viewing the extended tenure as an effective strategy for broadening access to housing credit for the public.

He stressed that the policy will encourage banks to expand financing services with longer tenures. “When instalments become lighter, people’s purchasing power increases, the housing sector grows faster, and the broader economy benefits,” he said.

With this 30-year tenure extension policy, the government hopes that increasingly more Indonesians can own decent and affordable housing, in line with President Prabowo’s commitment to provide homes for all Indonesians.