Subsidised Home Loans Could Extend to 40 Years, Here's a Glimpse of the Instalments

The government is strengthening access to affordable housing for low-income communities (MBR) through various financing policies. During a Tapera Committee meeting chaired by Minister of Housing and Settlement Maruarar Sirait at the Directorate General of Treasury, Ministry of Finance, Central Jakarta, on Wednesday (24/6/2026), several strategic steps were agreed upon to accelerate the distribution of Housing Financing Liquidity Facility (FLPP) and support the achievement of the 3 Million Houses Programme. The meeting was attended by Minister of Finance Purbaya, Minister of Manpower Yassierli, OJK Board of Commissioners Member Friderica Widyasari Dewi, BP Tapera Commissioner Heru Pudyo Nugroho, and high-ranking officials from the Ministry of Housing and Settlement. One of the main agendas was evaluating the progress of FLPP distribution in 2026. As of 23 June 2026, the realisation of FLPP distribution reached 81,083 units, or 23.22% of the 350,000-unit target, with a financing value of Rp10.1 trillion. Including houses that have entered the credit agreement stage, the achievement reaches 103,003 units, or about 29.43% of the annual target. BP Tapera Commissioner Heru Pudyo Nugroho outlined strategies to meet the 350,000-unit target by year-end, including strengthening target market segmentation, enhancing promotions, boosting synergy and collaboration, strengthening digital marketing, and implementing a policy of a maximum FLPP financing tenor of 40 years. The meeting also addressed challenges such as the impact of Protected Rice Field (LSD) and Raw Rice Field (LBS) policies on licensing and certification, with a Joint Ministerial Decree issued as a solution. The Financial Services Authority (OJK) has supported the programme by accelerating the updating of paid-off credit data reports, limiting credit information displayed in the SLIK system, and granting BP Tapera direct access to check SLIK data. The committee discussed the President’s directive on implementing a 40-year KPR FLPP scheme, covering down payments, instalment amounts, and affordability. For subsidised landed houses, the government is reviewing a tiered interest rate scheme with monthly instalments of around Rp500,000, while subsidised flats are targeted at around Rp700,000 per month. Despite financial market interest rate fluctuations, the government ensures full protection for low-income earners, with the Ministry of Housing and Settlement confirming that the FLPP interest rate for landed houses remains at 5% and for flats at 6% until the end of the tenor. This stability is supported by liquidity management from BP Tapera and Danantara Indonesia. Minister of Manpower Yassierli stressed the importance of attractive financing schemes for workers and labourers to enable more people to own decent housing. The meeting also discussed the development of FLPP financing schemes for subsidised flats, with the Director General of Urban Housing explaining the concept of pre-construction flat credit registration. Based on Minister of Housing and Settlement Decree Number 23 of 2026, four fundamental changes were established for subsidised flats: building area of 21-45 square metres, financing tenor of up to 30 years, a 6% interest rate, and regional price adjustments per square metre. Minister of Finance Purbaya emphasised the need to maintain the quality of subsidised flat construction to increase public interest. The Tapera Committee approved several key policies, including maintaining the FLPP interest rate at 5% for landed houses and 6% for flats, and opening the possibility of implementing a 40-year financing tenor to improve affordability. Minister of Housing and Settlement Maruarar Sirait affirmed that these policies reflect the government’s commitment to following President Prabowo Subianto’s directive to expand access to decent and affordable housing.