Jakarta — The government is continuing to accelerate the implementation of the 3 million subsidized housing program to expand public access to affordable and decent housing. The initiative is one of the government’s key strategies to reduce the national housing backlog while stimulating growth in the property sector, which has strong multiplier effects on the broader economy.
The acceleration is being pursued through various policies, including adjustments to the people’s housing credit financing scheme to make monthly installments more affordable. The government is currently considering extending the loan tenor for subsidized housing so that the monthly payment burden for low-income households becomes lighter and opportunities to own a first home become more accessible.
Minister of Housing and Settlement Areas, Maruarar Sirait, said the government is reviewing a new policy to extend the repayment period for subsidized housing loans from the previous maximum of 20 years to up to 30 years.
“For decades, subsidized housing installments were limited to a maximum of 20 years. Now we are increasing it to 30 years so that people’s monthly installments become lighter,” Maruarar said.
The 3 million housing program is designed to address the continuously growing demand for housing driven by population growth and urbanization. Housing demand in Indonesia has long exceeded supply, leaving many people—particularly low-income groups—facing difficulties in obtaining adequate housing.
Through the program, the government is encouraging large-scale construction of subsidized housing by involving local governments, property developers, and financing institutions. Cross-sector collaboration is considered essential to accelerate housing development while maintaining the quality of the homes being built.
Support for the plan to extend loan tenors has also come from the state financial sector. Minister of Finance Purbaya Yudhi Sadewa said the policy could become an effective strategy to expand access to housing credit for the public.
“We support the steps taken by the Ministry of Housing and Settlement Areas and the Public Housing Savings Management Agency (BP Tapera) to extend the tenor to 30 years. This will make installments cheaper, reduce down payments, and make it easier for people to buy homes,” Purbaya said.
Through strengthened policies, including the plan to extend loan tenors to 30 years, the government hopes that the 3 million subsidized housing program will reach more people and accelerate the fulfillment of national housing needs. The program is expected to become an important part of improving public welfare while strengthening social and economic development across various regions.
