Workers Earning Rp2.8 Million Targeted for 40-Year Subsidised Mortgage Tenor

The Public Housing Savings Agency (BP Tapera) has proposed a subsidised mortgage scheme with a tenor of up to 40 years. This proposal is one of the breakthroughs to expand access for low-income communities (MBR) to their first homes, especially for groups earning around Rp2.8 million per month. BP Tapera Commissioner Heru Pudyo Nugroho said that extending the tenor to 40 years can make the community’s repayment capacity more aligned with banking requirements. With a longer repayment period, monthly instalments for subsidised housing are estimated to drop to between Rp500,000 and Rp700,000 per month. “The longer the repayment period, the lighter the monthly instalments. This way, people who previously did not meet the banking repayment capacity requirements have a greater opportunity to obtain subsidised housing,” Heru said, as quoted from an official statement on Thursday (25/6). Under the proposal, the fixed interest rate for subsidised housing is maintained at 5% for landed houses and 6% for flats throughout the financing period. With a fixed rate, beneficiaries are not affected by market interest rate changes during the repayment period. The 40-year tenor proposal has received support from the Minister of Housing and Settlement Areas, who also serves as the Chair of the Tapera Committee, Maruarar Sirait. He assessed that financing innovation is necessary to meet the demand for liveable homes for the community. “There is a big target we must achieve. Therefore, breakthroughs and innovations are needed. Extending the tenor period is one effort to make it easier for people to own homes,” said Maruarar. In addition to the subsidised mortgage tenor, the government is reportedly preparing supporting regulations so the programme can run smoothly. Minister of Manpower Yassierli encouraged BP Tapera to strengthen cooperation with worker and labour groups. According to him, workers constitute one of the large segments needing access to affordable housing financing. Meanwhile, Tapera Committee Member Purbaya Yudhi Sadewa reminded that the provision of subsidised housing, especially flats, must still pay attention to residential quality. He hopes the public will begin to see flats as comfortable, modern, and liveable dwellings. Based on data received, the distribution of the Housing Financing Liquidity Facility (FLPP) throughout 2026, as of 23 June 2026, has seen 81,286 housing units realised and 21,735 units with credit agreements. Thus, the total FLPP realisation reached 103,003 units. This figure is part of the target to distribute 350,000 FLPP housing units by the end of the year.