Minister: 40-year subsidised mortgage tenor to ease public burden

Jakarta - Minister of Housing and Settlement Areas (PKP) Maruarar Sirait (Ara) has stated that the 40-year instalment tenor scheme for Subsidised Housing Loans (KPR) is intended to provide greater ease for the public. “In principle, this is no longer up for negotiation but must be implemented with proper governance. It is already a directive from the President with a very good objective of making it easier for the people so that their instalments become lower—that is excellent. Now the question is how the governance can also run well,” said Ara in Jakarta on Wednesday. He mentioned that the plan for the 40-year subsidised mortgage tenor scheme will be discussed within the Committee of the Public Housing Savings Management Agency (Tapera). “We are currently looking for a suitable time because it must involve the Tapera Committee. The Tapera Committee includes myself, Mr (Finance Minister) Purbaya, the Minister of Manpower, and the Financial Services Authority (OJK). So together we have been prepared by Tapera; it has been studied for the past one and a half months, discussions have been held with banks and with SMF, and later it will be submitted to Tapera first for the committee to deliberate,” he said. Ara conveyed that the regulation for the 40-year subsidised mortgage tenor scheme is expected to be completed this year. For context, the Minister of Housing and Settlement Areas (PKP) Maruarar Sirait (Ara) stated that the government is currently preparing regulations for a subsidised housing mortgage scheme with a tenor of up to 40 years, in accordance with the directive of President Prabowo Subianto. Ara said the government is still conducting simulations and preparing various supporting regulations before the long-tenor policy is officially announced to the public in the near future. He stressed that the 40-year tenor scheme will be optional, so the public can still choose shorter tenors according to their respective capabilities and needs. He explained that the public will retain the option to select tenors of 10 years, 20 years, or 30 years, ensuring that flexibility in instalment payments remains a focus of the government in this policy.