Jakarta – The government continues to strengthen the housing sector as a driving force of the national economy. One of the latest strategic steps is the policy of extending the installment tenor for subsidized housing to 30 years. This policy is projected not only to expand access to home ownership for the public but also to encourage the growth of the banking industry and accelerate the national economy towards the 8 percent growth target.
Finance Minister Purbaya Yudhi Sadewa believes that this policy, initiated by the Ministry of Housing and Settlement Areas (PKP), will create a healthier competitive climate in the banking sector. He believes that when the installment tenor for subsidized housing is extended to 30 years, private banks and other financial institutions will be encouraged to offer similar financing schemes.
“And this should also trigger private banks and other banks to offer similar services so that the housing sector can grow faster, faster, faster, faster, so that the economy can grow faster, and our target of 8 percent becomes more visible,” said Purbaya.
He emphasized that the housing sector has a significant multiplier effect on the economy. Housing construction activities will stimulate the building materials industry, absorb labor, and increase household consumption. Therefore, this policy is believed to significantly contribute to sustainable national economic growth.
In line with this, Minister of PKP, Maruarar Sirait, called the extension of the installment tenor a significant breakthrough in the national housing finance program. He emphasized that this policy is a concrete manifestation of the government’s commitment to the people, especially low-income communities (MBR) and those with lower incomes (MBT).
“Previously, the maximum tenor was 15 or 20 years. Now we’re extending it to 30 years to make installments even more affordable. This is a concrete manifestation of the government’s commitment to the people,” said Maruarar.
According to him, this policy complements various incentives the government has provided to ease the burden on people in owning a home. These incentives include exemption from Land and Building Acquisition Tax (BPHTB), exemption from Building Approval (PBG) for low-income earners (MBR), and a Government-Borne Value Added Tax (PPN DTP) facility for new house or apartment purchases worth up to IDR 2 billion, extended until 2027.
In addition to targeting low-income earners (MBR), the government is also preparing a special financing scheme for low-income earners (MBT) with a fixed interest rate of 7 percent for 15 years and a tenor of up to 30 years. This scheme is expected to bridge the housing needs of productive segments of society that have not been fully covered by subsidy programs.
With this series of policies, the government is optimistic that the housing sector will grow faster, public purchasing power will increase, and the national economy will move more strongly towards its established growth targets. (*)