Maruarar: 40-year mortgage tenor eases home ownership for the public

Housing and Settlement Areas (PKP) Minister Maruarar Sirait stated that a mortgage scheme (KPR) with a tenor of up to 40 years aims to make it easier for the public to own a home through lighter instalments. According to Maruarar, the policy is a directive from President Prabowo Subianto aimed at expanding public access to subsidised housing. “The 40-year tenor is indeed a good and noble objective from President Prabowo, its sole purpose is so that the people find it easier, with cheaper instalments. That is a very good thing,” Maruarar said at the Presidential Palace complex in Jakarta on Tuesday. He explained that the plan to implement a 40-year mortgage has been discussed with several ministries and agencies, including the Public Housing Savings Management Agency (Tapera), the Ministry of Finance, the Ministry of Manpower, and the Financial Services Authority (OJK). “Everyone agrees and supports it,” he said. Regarding implementation, Maruarar said the government is still finalising a number of regulations as the legal basis for the policy. He expressed hope that the process of drafting the rules would not take long. Maruarar believes the longer tenor will increase public interest in subsidised housing because the monthly instalment amounts become more affordable. “Yes, there will be more enthusiasts for subsidised housing because the instalments can become lower, possibly below Rp1 million,” Maruarar explained. He added that the government is currently conducting several studies before deciding on the implementation timeline for the 40-year mortgage scheme. “We are studying it, we are striving for the best,” he concluded.