New Subsidised Housing Scheme: 1% Down Payment and 30-Year Tenure

The Ministry of Housing and Settlement Regions is preparing an extended financing policy for subsidised housing loans, allowing loan tenures of up to 30 years.

This policy aims to reduce monthly instalments and make homeownership more affordable for low-income households (MBR).

Finance Minister Purbaya Yudhi Sadewa expressed support for the plan, viewing the extended tenure as a strategy to broaden access to public housing credit.

“We support the measures of the Ministry of Public Works and Housing and BP Tapera to extend the tenure to 30 years. This way, instalments will be cheaper, down payments can be lower, and it will be easier for people to buy houses,” Purbaya said following a Tapera Committee meeting in Jakarta on Thursday, 26 February 2026.

“If instalments are lighter, people’s purchasing power increases, the housing sector grows faster, and the economy is boosted,” he added.

The Minister of Housing and Settlement Regions Maruarar Sirait noted that the previous maximum tenure ranged from 15 to 20 years. The extension to 30 years represents a significant change in the subsidised housing financing scheme.

The government is also preparing a scheme for middle-income households (MBT), offering a fixed interest rate of 7% for 15 years with tenure extending to 30 years.

Prospective buyers need only prepare a down payment of 1%. The government will provide an initial cost subsidy of Rp25 million.

The government targets this scheme to accelerate the provision of housing for the population.