Jakarta – The government is preparing a new policy to extend the installment term for subsidized housing to 30 years. This measure is part of the government’s efforts under President Prabowo Subianto to expand access to more affordable housing for Low-Income Communities (MBR) and Communities with Middle Income (MBT).
Minister of Housing and Settlement Areas (PKP), Maruarar Sirait, stated that this extension represents a significant breakthrough in the national housing financing program.
“Previously, the maximum term 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 Ara.
In addition to MBR, the government is also preparing a special financing scheme for MBT with a fixed interest rate of 7% for 15 years and a term of up to 30 years.
Finance Minister Purbaya Yudhi Sadewa also expressed support for this policy, stating that extending the tenor is an effective strategy to expand access to public housing loans.
“We support the move by the Ministry of PKP and BP Tapera to extend the tenor to 30 years. This will make installments cheaper, down payments lower, and make it easier for people to buy a home,” said Purbaya.
He emphasized that this policy will encourage banks to expand financing services with longer tenors.
“If installments are lighter, people’s ability to afford them will increase, the housing sector will grow faster, and the economy will be boosted,” he added.
The policy of extending the tenor for housing loans is also a strategic step to create a more dynamic competitive climate in the banking industry. The 30-year tenor scheme not only provides borrowers with more breathing room through lower installments, but is also expected to encourage other banks to offer similar, more competitive financing products.
“And this should also encourage private banks and other banks to offer similar services, so that the housing sector can grow faster, faster, faster, and faster, so that the economy can grow faster, and our target of 8 percent becomes more visible,” he said.
This competitive push is believed to strengthen the housing sector as a key driver of the economy. The property industry has a wide-ranging multiplier effect, ranging from absorbing construction workers and increasing demand for building materials to the growth of supporting sectors such as transportation and services, thereby accelerating the economic chain in this sector.