Indonesia to Expand Subsidised Housing Eligibility, Income Cap Raised to Rp 14 Million in Some Zones

The Ministry of Home Affairs and the Ministry of Housing and Residential Areas are preparing to issue a Joint Ministerial Decree (SKB) that will adjust the maximum income limits for low-income communities (MBR) eligible for subsidised housing. The new regulation expands the previous two-zone system into four distinct zones, with income limits now ranging from Rp 8.5 million to Rp 14 million per month, depending on marital status, location, and participation in the Tapera housing savings scheme.

Home Affairs Minister Muhammad Tito Karnavian stated that the decree supports the housing ministry’s new definition of MBR, which was based on a study by the Central Statistics Agency (BPS). The four zones are: Zone 1 (Java excluding Jabodetabek, Sumatra, Nusa Tenggara) with a limit of Rp 8.5 million for singles and Rp 10 million for married couples; Zone 2 (Kalimantan, Sulawesi, Bangka Belitung, Bali) with a limit of Rp 9 million for singles and Rp 11 million for married couples; Zone 3 (Papua) with a limit of Rp 10.5 million for singles and Rp 12 million for married couples; and Zone 4 (Jabodetabek) with a limit of Rp 12 million for singles and Rp 14 million for married couples who are Tapera participants.

Beyond income thresholds, the SKB will also accelerate the building approval (PBG) process to just 10 days and waive PBG fees and Land and Building Acquisition Duties (BPHTB) for MBR. The BPHTB exemption applies regardless of whether the property location matches the buyer’s official domicile on their identity card, allowing, for example, a West Java resident to purchase a subsidised house in Banten without incurring the duty.