Housing Ministry's Subsidised Apartment Regulation Will Include 30-Year Instalment Tenor

Jakarta – Indonesia’s Minister of Housing and Settlement Areas Maruarar Sirait has announced that a draft ministerial regulation concerning subsidised apartment housing will include an instalment tenor of up to 30 years.

“One of the fundamental principles regarding tenor duration is that it can be extended to 30 years. We can certainly confirm that,” said Maruarar, commonly known as Ara, in a statement received in Jakarta on Wednesday.

The proposed extension to a 30-year instalment period will significantly ease access to subsidised vertical housing for the general public, he added. “This will provide extraordinary convenience for the people,” he stated.

The Ministry of Housing and Settlement Areas held a socialisation session on the draft ministerial regulation concerning the selling price, floor area, interest rates, and credit/financing periods for apartment units under the Liquidity Facility for Housing Financing programme. The event was attended by various housing ecosystem stakeholders, ranging from developers to the banking sector.

Ara has set a target for the draft regulation to be issued by end of March 2026. “We have decided to listen to the final round of feedback before signing off. Hopefully we will implement it by the end of this month,” he said.

The government, through the Ministry of Housing and Settlement Areas, is preparing a new policy extending the instalment tenor for subsidised housing to 30 years. This extension represents a significant breakthrough in the national housing financing programme.

“Previously, the maximum tenor was 15 or 20 years. Now we are extending it to 30 years so that instalments become lighter. This is a concrete demonstration of the government’s commitment to the people,” said Ara.

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

The policy complements various benefits already provided by the government, including exemptions from Property Transfer Duty (BPHTB), exemptions from Building Permits (PBG) for low-income households, and Value-Added Tax (VAT) borne by the government (DTP) for the purchase of new homes or apartments valued up to IDR 2 billion, which has been extended until 2027.

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

Prospective residents need only prepare a down payment of 1 percent, whilst the government covers VAT entirely and provides a convenience subsidy of IDR 25 million to cover initial costs such as origination fees, notarial fees, and insurance.

Support for the policy was also expressed by Finance Minister Purbaya Yudhi Sadewa, who views the tenor extension as an effective strategy to expand access to housing credit for the general public.