EN.malanginspirasi.com – The Indonesian government, through the Ministry of Housing and Settlement Areas (Kementerian PKP), is finalizing new regulations that will extend the maximum tenor of subsidized Home Ownership Credit (KPR Subsidi) to 30 years. The move is designed to make monthly installments far more affordable for low-income communities (MBR) and lower-middle-income groups (MBT).
Housing Minister Maruarar Sirait made the announcement after a Tapera Committee meeting in Jakarta on Thursday, 26 February 2026. Until now, the maximum tenor for subsidized KPR had been limited to just 15–20 years.
“Previously the maximum tenor was only 15 or 20 years. We are now extending it to 30 years so that the monthly installments become much lighter. This is concrete proof of the government’s commitment to the people,” Minister Ara, popularly known, stated.
Finance Minister Purbaya Yudhi Sadewa gave his full backing to the policy. He noted that longer tenors will reduce monthly payments, enable lower down payments, and encourage private banks to roll out similar schemes — ultimately accelerating growth in the property sector.
Take a subsidized house priced at Rp185 million in Bogor with a minimal 1% down payment (Rp1.85 million) and a 30-year tenor. The monthly installment comes to approximately Rp992,848. The figure was calculated using the official BTN Property calculator on Friday, 27 February 2026, based on a 5% flat interest rate.
By comparison, the same house on a 20-year tenor would require around Rp1.5 million or more per month. For families earning Rp4–6 million monthly, the difference is life-changing. As long as the installment stays within 30% of their income.
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Comprehensive Incentive Package
Beyond the longer tenor, the government is rolling out a full support package that includes:
- Down payment as low as 1%
- Fixed 7% interest rate for the first 15 years (for MBT applicants)
- Rp25 million initial subsidy covering notary fees, bank provisions, and insurance
- Government absorbs VAT (PPN) and fully exempts BPHTB and PBG for MBR buyers
- Seamless integration with the BP Tapera housing savings program
Who Can Apply?
The scheme targets individuals earning no more than Rp12 million per month (single) or Rp14 million per month (married couples). Applicants must pass verification through BP Tapera and be approved by official participating banks: BTN, BNI, BRI, and Mandiri.
As of late February 2026, the policy remains in the final regulatory stage and has not yet been rolled out nationwide.
The advantages of this policy are lighter monthly installments, greater opportunities to own your own home, and a strong boost to economic growth and the property sector.
However, the total interest paid over the full 30 years will be significantly higher. And the loan must be fully repaid before retirement age (typically a maximum of 65–70 years). If your income is unstable, the risk of late or missed payments still remains.
Prospective buyers are strongly advised to visit participating banks or contact BP Tapera directly for a personalized simulation and to confirm their long-term repayment ability.
This policy marks one of the most significant housing affordability initiatives in recent years, bringing the dream of homeownership closer for millions of Indonesians.
