Latest Update! Prabowo Prepares New Subsidised Mortgage Scheme with 6% Interest Rate

President Prabowo Subianto has launched several assistance programmes aimed at strengthening purchasing power from the fourth quarter of 2026 through 2027. One of the initiatives being prepared is a new subsidised mortgage (KPR) scheme with low interest rates.

This stimulus programme was decided during a limited meeting with President Prabowo Subianto at the State Palace on Wednesday (30/09/2026). The meeting was attended by the Coordinating Minister for Economic Affairs, Airlangga Hartarto; Finance Minister Suahasil Nazara; CEO of BPI Danantara, Rosan Roeslani; Head of BP BUMN, Dony Oskaria; and Minister of Energy and Mineral Resources, Bahlil Lahadalia.

“Furthermore, a new additional programme is being created for subsidised mortgages for those with a fixed income of around Rp17 million,” said Airlangga during a press conference, as reported on Thursday (01/10/2026).

The programme requires applicants to have a fixed monthly income of Rp17 million for the purchase of houses valued at Rp500 million. The government will provide an interest rate of 6%.

Airlangga explained that this programme was previously intended for MSME (UMKM) actors with irregular incomes who were actively working. However, the requirement has been changed to mandate a fixed income.

“Previously, this programme was prepared for MSMEs with irregular incomes who are making an effort. Now, it is for those with a fixed income,” he said.

In line with this policy, the government is also extending the VAT Borne by the Government (PPN DTP) facility until 2027. This facility is provided for house purchases priced up to Rp2 billion. For house purchases up to Rp5 billion, the PPN DTP facility is applied to the portion of the price up to Rp2 billion.