New Subsidised Apartment Scheme to Be Issued Soon, 30-Year Term and 6 Percent Interest

The national property sector is awaiting the finalisation of regulations expected to reshape the landscape of affordable housing for the public.

Minister for Housing and Settlement Areas, Maruarar Sirait, is completing the Draft Ministerial Decree on the financing scheme for the Housing Finance Liquidity Facility (FLPP) specifically for Apartment Units (Sarusun).

This step is taken in response to the systemic failure in providing subsidised vertical housing over the past five years.

The figures have barely made a dent compared to the national housing backlog of 9.6 million units.

The government has set a target of financing 50,000 subsidised apartment units in 2026.

This strategy is not without basis. Maruarar sees an acute disparity in urban areas, particularly Jakarta, where the backlog rate reaches 40.6 percent.

“We must work even harder. This target of 50,000 units is an effort to change the paradigm from land-intensive horizontal housing to efficient vertical housing in city centres,” said Maruarar in response to Kompas.com on Wednesday (17/3/2026).

First, a flat interest rate of 6 percent is set to provide certainty in instalments amid fluctuations in market interest rates that often ensnare lower-class consumers.

Second, a term of up to 30 years. This extension of the repayment period aims to reduce the monthly instalment amount to match the income structure of the MBR in major cities.

Third, a progressive standard unit floor area increased from a previous maximum of 36 square metres to 45 square metres.

Fourth, a grace period for instalments during the construction phase (pre-sale). This means consumers only start paying after the unit is ready to occupy, thus avoiding the double burden of paying rent and bank instalments simultaneously.

The sharp criticism that has long plagued the subsidy programme concerns the accuracy of recipients. For this reason, the Ministry of Housing and Settlement Areas is collaborating with the Central Statistics Agency (BPS) to implement a By Name By Address system through the National Single Socio-Economic Data (DTSEN).