Prabowo's Promise to Workers: Mortgage Instalments Extended to 40 Years

President Prabowo Subianto stated that low-income groups such as workers will be facilitated in home ownership. One of the efforts is to make the Credit for Home Ownership (KPR) instalment scheme as light as possible. “Brothers and sisters, earlier I said 30 percent of income for rent (house). Later, we will ensure that you will own that house,” Prabowo said during the International Labour Day commemoration at Monas, Jakarta, which was also broadcast live, quoted on Saturday (2/5/2026). According to Prabowo, the current Credit for Home Ownership regulations are considered quite burdensome, making it difficult for millions of people to access home financing facilities. He said that home financing regulations need to be simplified. One of the efforts he will undertake to enable lower-income groups to own housing is to make KPR instalments as light as possible, for example by extending the tenor up to 40 years. “The instalment, if possible, 20 years, if not 20 years, 25 years. If not settled in 25 years, 30 years. If not possible, 35 years, 40 years,” he explained. This former Kopassus Deputy Commander stated that due to high KPR instalments, many workers use 30 percent of their salary just to rent a house rather than pay off a KPR. “From the 30 percent for rent, we will reduce it, that is to pay for your own house,” said Prabowo. For information, the KPR tenor is the repayment period for the home loan provided by the bank to the customer. This period is calculated from when the credit is disbursed until the entire principal loan plus interest is fully paid. The longer the tenor chosen, the lighter the monthly instalment will be. However, the total interest paid over the credit period becomes larger. 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 settlement, monthly income, ability to pay instalments, and the customer’s credit history. Most banks set the maximum debtor age at credit settlement around 55 years or more according to the bank’s policy.