The Heavy Challenge Behind the 40-Year Mortgage Program

The plan to provide home ownership credit (KPR) with a tenor of up to 40 years opens up the opportunity for lighter instalments for the public. However, behind this, PT Sarana Multigriya Finansial (Persero) sees a major challenge in terms of providing a source of funding. SMF President Director Ananta Wiyogo stated that the 40-year tenor is not mandatory, but rather an option for people who need lighter instalments. “The 40-year tenor is not mandatory, but optional. If there are people whose 20-year instalments are still heavy, they can take a 40-year tenor,” Ananta said during a press conference in South Jakarta on Wednesday (22/7/2026). The main challenge is not the KPR product itself, but how to obtain very long-term funds that match the credit tenor. To date, the domestic capital market has not had strong investors for very long-term instruments. “If it is up to 40 years, it means the portion of funds provided by SMF must also match. The challenge is, can SMF find funds with a 40-year tenor? That is not easy,” he said. SMF has begun exploring opportunities to obtain funding from abroad after receiving an international rating from Standard & Poor’s. “We will try to explore offshore. Hopefully, there are investors who have long-term funds of 10 to 20 years. That is one of the reasons why we need an international rating,” he said. Ananta emphasised that establishing a long-term funding market requires the involvement of regulators, investors, and debt issuers so that the ecosystem is truly formed. “Regulators, investors, and issuers must sit together so that this long-term financing market can develop,” he said.