Minister Ara Meets Property Leaders to Discuss 40-Year Mortgage Tenures

The Minister of Housing and Residential Areas (PKP), Maruarar Sirait, conducted a meeting with several developers at his office to discuss various housing programmes. One of the key issues discussed was the extension of mortgage (KPR) tenures to 40 years.

Attendees of the meeting included the General Chairmen of the Indonesian Real Estate Association (REI) Joko Suranto, the Association of Residential and Housing Developers (Himperra) Ari Tri Priyono, the Association of National House Developers and Marketers (Asprumnas) Muhammad Syawali Pratama, and the National Housing Developers Alliance (Appernas) Andriliwan Muhammad.

Minister Maruarar, commonly known as Ara, stated that mortgage tenures could be extended up to 40 years to facilitate access to subsidised housing, particularly for low-income communities (MBR). “Following the direction of President Prabowo to provide access to the public and lighten the instalment burden, we can extend the tenure up to 40 years,” Ara said in a statement on Monday (18/5/2026).

Despite the extension to 40 years, the public will still have the flexibility to choose shorter terms, with options for 10, 15, 20, 25, and 30-year tenures remaining available. “The public will still be given a choice… This is President Prabowo’s noble goal, ensuring the people are provided with more affordable access,” Ara continued.

Ara emphasised that the principle of subsidised housing mortgages must prioritise ease of access for the public. “Mortgage tenures must be designed to make things easier for the people. It should not be a burden; therefore, the scheme will offer choices ranging from 10 to 40 years,” he asserted.

Meanwhile, the Deputy Commissioner of Utilisation at the Public Housing Savings Management Agency (BP Tapera), Sid Herdi Kusuma, noted that with a 40-year tenure, monthly instalments could be as low as Rp773,154. In comparison, a 20-year tenure would require a monthly payment of approximately Rp1.06 million.

“By extending the mortgage tenure to 40 years, monthly payments will only reach Rp773,154, which will expand the reach of mortgages to the public and provide relief for monthly payments,” said Herdi.

Furthermore, he is preparing options to extend tenures to 45 and 50 years, which would further reduce monthly instalments to Rp747,207 for 45 years and Rp728,166 for 50 years. “If extended to 45-50 years, the monthly instalments paid by the public will decrease even further,” Herdi explained.

However, developers expressed a preference for the 40-year extension to ensure the business sustainability of housing developers.