Purbaya Supports Subsidised Mortgage Scheme with 30-Year Tenor to Ease Instalments

Finance Minister Purbaya Yudhi Sadewa has endorsed a scheme to extend home loan tenors to 30 years for subsidised housing units to broaden access to property financing and ease the financial burden on households.

“One approach is extending the maturity and tenor of loans. We propose extending it to 30 years to make the monthly instalments more affordable,” Purbaya stated in a press release on Friday, 27 February 2026.

Purbaya believes that subsidised housing instalment schemes must be made attractive to encourage citizens to participate in financing through BP Tapera, Indonesia’s state-owned housing finance institution.

With longer repayment periods, monthly instalments are expected to decrease substantially, thereby boosting household purchasing power for property acquisition. The scheme is anticipated to expand financing access, particularly for lower and middle-income households.

“The Ministry of Finance supports BP Tapera so that its benefits are more widely felt by the public. The idea is that people should want to save with BP Tapera because the advantages and benefits they receive will be far greater than if they saved elsewhere for housing purposes,” Purbaya explained.

Beyond this, the policy of extending loan tenors is also expected to stimulate competition within the banking sector. Private banks and other financial institutions would then be able to offer comparable terms. This would enable the housing sector to grow more rapidly.

“This should also trigger private banks and other financial institutions to offer similar services, allowing the housing sector to grow faster, so that the economy can expand faster, and help us move closer towards our eight per cent growth target,” he concluded.