Minister PKP Ensures Subsidised Housing Interest Rate Will Not Rise

Minister of Housing and Settlement Areas (PKP) Maruarar Sirait has confirmed that the interest rate for subsidised housing will not increase and will remain at a flat 5 per cent from the beginning to the end of the instalment period. He stated that despite the increase in the BI Rate, the government continues to maintain the Housing Financing Liquidity Facility (FLPP) mortgage interest rate at 5 per cent so that people can obtain homes with affordable instalments. “We ensure the state is present and takes sides with the people, especially low-income communities. Even though there are economic dynamics and an increase in the BI Rate, the FLPP interest rate is maintained at 5 per cent so that people still have access to decent and affordable housing,” said Maruarar in Jakarta on Friday. He also emphasised that the policy of FLPP Home Ownership Credit (KPR) tenors of up to 40 years, as directed by President Prabowo Subianto, has been intensively discussed and can be implemented in accordance with applicable provisions and regulations. “Thank you for the support from Danantara, Mr Rosan, and BP BUMN, Mr Dony. Everything is still on track and there are several issues we are preparing regarding Meikarta, and on Monday I will go to BPKP to ensure all processes run according to existing rules,” he said. On that occasion, the progress of the 2026 Housing Financing Liquidity Facility (FLPP) distribution was also conveyed. From a distribution target of 350,000 housing units, realisation to date has reached 78,277 units, or approximately 22.36 per cent of the annual target. Maruarar attended a meeting with Danantara Indonesia to discuss strategic support for the 3 Million Homes Programme, which is one of President Prabowo Subianto’s national priority programmes. In the meeting, participants also discussed the inventory data collection of apartment buildings owned by state-owned enterprises as part of efforts to optimise state assets to support the provision of public housing. In addition, the Gentengisasi Programme, which aims to improve the quality of people’s homes, also received support from the banking sector, particularly PT Bank Rakyat Indonesia (Persero) Tbk. The meeting also discussed the progress of the completion of the Meikarta apartment project. The government, together with Danantara Indonesia, discussed a number of strategic steps, ranging from the grant handover process, the acceleration of due diligence on land legality currently being carried out by Danantara, to the determination of the state-owned enterprise that will be assigned to implement the project. In addition, the scheme for setting the selling price per housing unit was also discussed so that the socialisation process to the public can be carried out optimally as soon as possible. The meeting also discussed the drafting of a Presidential Instruction initiated by Danantara as one of the instruments to accelerate the resolution of various strategic issues in the housing and settlement areas sector.