Minister for Housing and Settlement Areas: Tenor of Subsidised Home Loans Extended to 30 Years
JAKARTA — The government has opened the option to extend the tenor of subsidised housing loans from a maximum of 20 years to 30 years as part of efforts to support the 3 million homes programme for the public.
Minister for Housing and Settlement Areas Maruarar Sirait said the policy was introduced so that housing payments become lighter, enabling more low-income households (MBR) to afford home ownership.
“For decades, subsidised housing loans have had a maximum 20-year tenor. Now we are raising it to 30 years so that people’s instalments are lighter,” Maruarar said at the Support for the President’s Priority Programme 3 Million Homes event in Cikarang, West Java on Sunday (8/3/2026).
According to him, the decision reflects President Prabowo Subianto’s instruction to widen access to housing finance while accelerating the implementation of the 3 million homes programme.
In addition to extending the loan tenor, the government is also preparing various steps to speed up the construction of affordable housing, including land provisioning and financing schemes involving multiple parties.
He said affordable housing for the public would be supported by land availability from various sources, ranging from state land and corporate entities to cooperation with the private sector.
“If land is available, financing is available, and all parties cooperate, then the construction of affordable housing can move much faster,” Maruarar said.
The 3 million homes programme is one of the government’s efforts to reduce housing backlog while increasing access to decent and affordable housing.
Previously, Finance Minister Purbaya Yudhi Sadewa supported the policy of extending the tenor of subsidised housing loans to 30 years as a strategy to broaden access to housing finance for the public and ease monthly instalment burdens.
Purbaya said that a longer tenor would make instalments more affordable and increase the public’s ability to access mortgage credit.
“We support the steps of the PKP Ministry and BP Tapera to extend the tenor to 30 years. This will result in cheaper instalments, lower down payments, and a broader ease of buying homes,” Purbaya said in a statement in Jakarta, Thursday (26/2/2026).
In addition to targeting MBR, the government is also preparing a financing scheme for households with MBT incomes, with a fixed rate of 7 percent for 15 years and a tenor of up to 30 years.
The government hopes this policy will widen home ownership for the public while also boosting growth in the national property sector, which has long been a key driver of the domestic economy.