Minister Ara Meets OJK Chair and BI Governor, What's the Agenda?
Minister of Housing and Settlement Maruarar Sirait met with Financial Services Authority (OJK) Chairperson Friderica Widyasari Dewi and Bank Indonesia (BI) Governor Perry Warjiyo on Wednesday, 27 May 2026.
“Thank you to the BI Governor and OJK Chairperson for your support for public housing,” said Minister Ara, known as Ara, on 28 May 2026. He did not elaborate further on the meeting’s agenda.
The Ministry of Housing and Settlement emphasised the importance of collaboration between the ministry, BI, and OJK to strengthen the national housing sector. “Collaboration between the Ministry of Housing and Settlement, Bank Indonesia, and OJK is crucial in expanding public access to decent and affordable housing,” the ministry stated.
Various policies and support measures have been implemented, including maintaining financial sector stability, promoting housing finance liquidity, strengthening the home ownership credit (KPR) ecosystem, and supporting sustainable housing finance development, all contributing significantly to accelerating public housing construction.
The ministry highlighted BI’s macroprudential policies favouring housing, such as liquidity incentives for banks providing housing loans, which bolster mortgage financing for citizens.
OJK, meanwhile, continues to encourage the financial services industry to enhance housing finance access, strengthen consumer protection, and expand financial inclusion for low-income groups.
The ministry is currently finalising several housing sector programmes. One includes extending KPR tenors to 40 years, which Ara stated would ease affordability for low-income earners (MBR) purchasing subsidized homes.
Although the KPR tenor has been extended to 40 years, borrowers still have flexibility with repayment terms of 10, 15, 20, 25, and 30 years.
Additionally, the ministry is preparing a new scheme to help those with credit record issues obtain subsidized housing. The rent-to-own concept, set for a trial in June 2026, targets individuals who can afford mortgage payments but were denied financing due to SLIK (Credit Information System) issues.
Under this scheme, potential borrowers will have a period to prove their repayment capability before securing a KPR. Banks initially proposed a 12-month trial period, but this was deemed too lengthy. The revised plan involves a six-month period where applicants must pay 150% of the standard monthly instalment. The extra funds will help clear existing debts up to a maximum of Rp3 million.