Prabowo Extends Housing Loan Tenure to 30 Years
The Government, through the Ministry of Housing and Settlement Areas (PKP), has launched a new policy extending the repayment period for housing loans, or Kredit Kepemilikan Rumah (KPR), to 30 years.
The 30-year KPR tenure policy has been adopted as a government effort to expand opportunities for citizens to own their own homes.
Housing Minister Maruarar Sirait explained that the extended tenure period will directly reduce the monthly instalment burden for citizens.
“Previously, the maximum tenure was 15 or 20 years. Now we are extending it to 30 years so that instalments become lighter,” Sirait said, citing an official statement from the Housing Ministry on Sunday, 1 March 2026.
Sirait views the policy as an important breakthrough to open access to home ownership for low-income households (MBR) and lower-middle-income households (MBT).
Under the new scheme, monthly instalments are guaranteed to be lower compared to 15 or 20-year tenures.
The Government hopes this policy will reach groups of society that have hitherto struggled to meet instalment obligations.
The tenure extension is also part of efforts to accelerate the home ownership programme for low and lower-middle-income households, particularly amidst pressure from rising property prices and limited purchasing power.
In addition, the Government has introduced several other incentives, including exemption from the Land and Building Rights Acquisition Tax (BPHTB) and exemption from Building Permits (PBG) for low-income households.
Other incentives include Government-Subsidised Value Added Tax (PPN DTP) for the purchase of new houses or apartments priced up to 2 billion rupiah, extended until 2027.
A subsidy of 25 million rupiah is allocated for various expenses including loan origination fees, notary fees, and insurance.
Finance Minister Purbaya previously expressed support for the 30-year KPR tenure policy, deeming the measure effective in expanding access to housing finance for the public.
“With longer tenure, instalments become cheaper, down payments become lighter, and citizens find it easier to own homes,” he said.
The 30-year KPR policy will also encourage banks to expand financing services with longer tenures. If the housing sector grows, the Indonesian economy will also benefit.
Through this policy, the Government hopes to accelerate the equitable distribution of adequate and affordable housing, in line with President Prabowo Subianto’s commitment to providing homes for all Indonesian citizens.