Prabowo: Workers' Mortgage Instalments Can Be Extended up to 40 Years

Jakarta, CNBC Indonesia — President of the Republic of Indonesia Prabowo Subianto has outlined the government’s plan to help workers own homes through a more flexible long-term financing scheme.

He highlighted that currently, some workers allocate around 30% of their income to rental or boarding costs. In the future, this portion will be redirected towards instalments for owning their own homes.

“You mentioned earlier that around 30% of income is used for rent. In the future, we will direct that towards instalments for your own home,” he said while attending the peak of International Labour Day celebrations at Monas, Central Jakarta, on Friday (1/5/2026).

Prabowo explained that the instalment tenor will be made long to make it more affordable, starting from 20 years and extendable to 25, 30, or even up to 40 years if necessary.

“The instalments can be for 20 years. If not possible, 25 years, 30 years, even up to 40 years,” he stated.

According to him, this scheme is designed so that workers have long-term housing certainty, in line with job stability.

For information, President Prabowo attended the peak of International Labour Day celebrations at Monas, Central Jakarta, on Friday (1/5/2026). On that occasion, Prabowo received input from labour union leaders, ranging from childcare (daycare) to housing.

Prabowo also stated that the government has built 350,000 homes to date. However, the government targets at least one million homes to begin construction this year as well.

“And these homes, as per your suggestions, will be built in clusters close to industrial areas, close to workplaces,” said Prabowo.

The government has also designed new cities consisting of 100,000 homes and 100,000 flats. These cities will be equipped with schools, sports facilities, daycare, hospitals, and decent transportation.

The transportation modes mentioned by Prabowo could include light rail transit (LRT) or buses. The aim is for workers’ mobility from residence to workplace to run smoothly and well.