PKP Minister guarantees subsidised mortgage rates will not rise despite BI-Rate hike

Jakarta - Minister of Housing and Settlement Areas (PKP) Maruarar Sirait has confirmed that subsidised mortgage interest rates (KPR subsidi) for low-income communities (MBR) will not increase, even though Bank Indonesia (BI) has raised its benchmark interest rate, the BI-Rate.

Maruarar Sirait, familiarly known as Ara, stated in Jakarta on Friday that the government continues to safeguard housing finance affordability for eligible low-income citizens.

According to Ara, the PKP Ministry has not, to date, adopted any policy to raise subsidised mortgage rates despite the BI-Rate increase.

“As of today, we are not raising it. As of today, I am aware that the BI rate has gone up,” he said.

He stressed that the decision was taken for the benefit of low-income communities, who are the primary target of the government’s subsidised housing programme.

“As Minister of Housing, I have decided not to raise the interest rate for subsidised housing for low-income people, the MBR who are entitled to receive it,” Ara stated.

Previously, the Bank Indonesia Board of Governors Meeting in June 2026 decided to raise the benchmark interest rate, or BI-Rate, by 25 basis points to 5.75 percent.

“The deposit facility interest rate also rose by 25 bps to 4.75 percent, and the lending facility interest rate increased by 25 bps to 6.5 percent,” said BI Governor Perry Warjiyo during a press conference on the results of the June 2026 BI Board of Governors Meeting in Jakarta on Thursday (18/6).