Latest Regulations on Subsidised Flats, Minister Ara Reveals the Details

Jakarta, CNBC Indonesia - The Minister of Housing and Settlement Areas (PKP), Maruarar Sirait, has stated that the preparation of the latest regulations regarding subsidised flats (rusun) has been completed. However, the announcement of these regulations to the public has not yet been made because they still need to be presented to the Head of the Housing Task Force, Hashim Djojohadikusumo. “The regulations on subsidised flats have been finalised, as we have held meetings to gather input from the Minister of Finance, Danantara, state-owned enterprises (BUMN), as well as the banking ecosystem, developers, and especially from prospective residents,” said Ara when met by reporters at the BUMN Supervisory Board office on Wednesday (1/4/2026). The minister, often called Ara, stated that she is waiting for the right time to present it to Hashim. “So, I just need to convey it to the Head of the Task Force (Hashim), find a suitable time for the announcement. The main point is that it is already done,” she explained. The regulations have been drafted over 3-4 months, taking into account input from developers, banks, contractors, and the public. The construction of subsidised flats will be available in various schemes. The land used can be obtained from state land owned by BUMN, regional governments, or ministries. Another option is private land, either provided as a form of corporate social responsibility (CSR) or in other ways. Previously, Ara promised to soon issue a ministerial decree (kepmen) on subsidised flats to make it easier for low-income communities (MBR) to own homes. The regulations stipulate that the mortgage ownership tenure (KPR) is extended to 30 years from the previous 20 years. The indent mortgage system with an interest rate of 6%. This is to provide financing ease for MBR. “The tenure is 30 years, the interest is 6%, and also the indent system,” she revealed. Furthermore, the size of the flats is expanded to up to 45 square metres. This way, residents have better living spaces. Then, the unit types can have between 1-3 bedrooms. This considers input from developers and Finance Minister Purbaya Yudhi Sadewa. It should be noted that the current subsidised flat sizes are 21-36 square metres. With the new regulations, the flat sizes can be 21-45 square metres.