Prabowo Promises Workers Can Pay Off Houses Over 40 Years
President Prabowo has pledged to provide an affordable housing credit scheme for workers. He stated that this initiative aims to allow workers, who have so far been renting homes, to own their own properties.
The Chairman of the Gerindra Party said he would offer leniency in the repayment period for workers’ housing. He even stated that repayments could be made over a period of 40 years.
“If possible, repay over 20 years; if not 20 years, then 25 years; if not settled in 25 years, then 30 years. If not, 35 years, then 40 years,” said Prabowo while attending the International Labour Day celebration at the National Monument area in Jakarta on Friday, 1 May 2026.
He noted that currently, a portion of workers’ wages is used for renting homes. Prabowo estimated that the amount of workers’ income used for renting reaches up to 30%.
Therefore, Prabowo wants to introduce a home repayment scheme that is no more expensive than rental costs. This way, workers can allocate the costs previously used for rent towards home repayments.
Prabowo is confident that workers will commit to paying their instalments even over 40 years. “Because workers won’t run off anywhere. Farmers and fishermen won’t run off anywhere,” he said.
In addition, Prabowo highlighted that small people have so far faced exorbitant interest rates when borrowing money. “The interest is insanely high. Right? Small people borrow money, the interest can be 70% per year,” he said.
Therefore, Prabowo stated that he has instructed state-owned banks to provide cheaper credit for the people. “Maximum (loan interest) 5% per year,” said the former Minister of Defence.
On the same occasion, Prabowo expressed his desire to build new cities for workers. He promised that these cities could be built with an integrated concept and close to industrial areas.
Prabowo said that housing needs are one of the aspirations voiced by workers. “I have planned that we will build new cities, each city perhaps consisting of 100,000 houses, 100,000 apartment units,” he said.
These new cities will not only focus on building homes. However, Prabowo said, they will also be equipped with various supporting facilities such as schools, hospitals, sports facilities, and childcare centres or daycares.
He also emphasised the importance of adequate transportation access so that workers can easily reach their workplaces. The government, he said, can provide modes of transport such as trains or public buses at affordable costs specifically for workers.
Prabowo conveyed that the government has so far built 350,000 affordable homes. The target, he said, will reach 1 million homes this year. “And these homes will be as per your suggestions, built in clusters close to industrial areas, close to and places of work,” said Prabowo.