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Jakarta, CNBC Indonesia - The idea of extending the tenor of Kredit Pemilikan Rumah (KPR) to 30 years or more has resurfaced. PT Sarana Multigriya Finansial (SMF) considers the scheme essentially aims to broaden home ownership access for the public.

SMF’s Business Director, Heliantopo, said a long tenor is not new in global practice. In several countries, mortgage instalments can reach 40 years to reduce monthly payments.

“If abroad installments can be up to 40 years. So housing is indeed a major investment that generally cannot be bought outright with cash by the majority of people,” Heliantopo said at a SMF press conference, Wednesday, 4 March 2026.

According to him, the longer the tenor, the lighter the monthly instalments. The scheme functions as a bridge for groups who previously could not reach housing prices.

Nevertheless, Heliantopo reminded not to misinterpret tenor relaxation. He gave an example: if someone can actually pay Rp 1 million per month, but chooses to lengthen the tenor merely to lower the instalments to Rp 800 thousand, then the difference should not be diverted to non-productive consumption.

“If one’s ability is one million and then extended to 800 thousand, perhaps the 200 thousand is used for something else. But not like that. But if one’s capability is 800, then that is very good,” he asserted.

SMF itself said it is ready to follow government policy related to tenor, particularly for the Housing Financing Liquidity Facility (FLPP) programme. If the tenor is extended to 30 years, the state-owned company said it is ready to fully support.

“If the FLPP programme is 20 years, we are prepared for 20 years fixed. If later 30 years, we as a special mission vehicle must be ready to disburse up to a 30-year tenor,” said Heliantopo.

On the risk side, SMF’s Chief Financial and Risk Management Officer, Bonai Subiakto, sees the tenor extension as potentially increasing payment stability because instalments are more affordable.

“The main objective is affordability. With the same interest rate and a longer tenor, instalments will surely be lower. As a result, more people can access KPR,” said Bonai.

He added that the increase in the non-performing loan (NPL) ratio for KPR, now around 3%, does not automatically correlate with a long tenor.

“NPL is more influenced by purchasing power, job conditions, and the economic situation. So it does not directly correlate with a 30-year tenor. On the contrary, we hope for greater stability,” said Bonai.