Prabowo Wants Mortgage Terms Extended to 40 Years, Ara: That's an Order, I'll Implement It

President Prabowo Subianto wants mortgage (KPR) instalments to be reduced as much as possible, with the aim of reaching more low-income groups. According to Prabowo, the current home ownership credit regulations are considered burdensome, making it difficult for millions of people to access housing finance facilities. He stated that housing finance regulations need to be simplified. One of the efforts he will undertake to enable lower-income groups to own homes is to make KPR instalments as light as possible, for example, by extending the tenor to up to 40 years. “If possible, instal over 20 years; if not 20 years, 25 years. If not paid off in 25 years, 30 years. If not possible, 35 years, 40 years,” Prabowo stated in a speech at the International Labour Day commemoration at Monas, Jakarta, some time ago. “If the President has given an order, as a minister I will certainly carry it out,” said Ara, her familiar nickname, when met in South Lampung, as reported by Tribun Lampung on Thursday (7/5/2026). According to her, the KPR tenor scheme extended to 40 years is necessary so that low-income people can own a home. With the extended credit period, the instalments paid will automatically be lower. “I previously extended it from 20 years to 30 years; now the President’s direction is to 40 years,” said Ara. For information, the KPR tenor is the repayment period for the home loan provided by the bank to the customer. The longer the tenor chosen, the lighter the monthly instalments will be. However, the total interest paid over the credit period becomes larger. Conversely, a shorter tenor makes monthly instalments higher, but the total interest paid is smaller. In Indonesia, KPR tenors are generally offered from 5 years up to a maximum of 25 years. However, some banks can offer tenors up to 30 years, depending on each bank’s internal policies and the customer’s profile. The determination of the tenor usually considers several factors, such as the applicant’s age when applying for credit, the maximum age at credit maturity, monthly income, ability to pay instalments, and the customer’s credit history. Most banks set the maximum debtor age at credit maturity around 55 years or more according to the bank’s policy.