Jakarta — The government continues to demonstrate its commitment to expanding access to housing financing for lower- and middle-income communities through the People’s Business Credit (KUR) Housing program.
This year, the government has allocated IDR 130 trillion to strengthen the housing financing sector, as part of the national strategy to equalize prosperity and improve the quality of life for the community.
Coordinating Minister for Economic Affairs Airlangga Hartarto stated that this program is designed to support housing construction while simultaneously encouraging the role of MSME contractors throughout Indonesia.
“So, this is being launched for housing credit, with the government providing an on-top budget of IDR 130 trillion,” said Airlangga.
This program is targeted to build around 320,000 homes, with loans that can be disbursed up to IDR 20 billion through a dedicated platform for MSME contractors.
Airlangga also encouraged regional heads such as governors, mayors, and regents to actively support regional contractors in providing housing for the community, as part of President Prabowo Subianto’s program to provide 3 million homes.
He added that the housing credit program also includes home renovation and repair facilities, with an allocation of IDR 17 trillion. Loan interest is capped at a maximum of 6% to stimulate the economic growth of recipient households.
“To the prospective recipients, I ask and hope that this government-assisted loan with a maximum interest rate of 6% will hopefully stimulate the economy in your households,” said Airlangga.
Meanwhile, Hery Gunardi, President Director of PT Bank Rakyat Indonesia (Persero) Tbk (BRI), stated that BRI’s KUR distribution continued to increase until the end of September 2025. Total financing disbursed reached IDR 130.2 trillion to 2.8 million borrowers, or 74.4 percent of the total allocation of IDR 175 trillion this year. This achievement demonstrates the significant role of the banking sector in driving the productive economy at the grassroots level.
“BRI remains committed to channeling financing to the real sector so that MSMEs can grow and advance,” he said.
BRI also distributed the Housing Financing Liquidity Facility (FLPP) to 110,000 low-income communities (MBR), with a loan value of Rp 15.07 trillion by September 2025. This program aligns with the government’s target of building three million homes for low-income communities.
With strong budget support and cross-sector synergy, the government is optimistic that this program will expand home ownership among productive communities while simultaneously reducing social inequality.