Jakarta — The government’s plan to extend the repayment tenor of subsidized housing loans to 30 years is expected to expand homeownership opportunities for low-income communities. The policy is intended to make monthly installments more affordable, thereby improving access to decent and affordable housing.
Minister of Housing and Settlement Areas (PKP), Maruarar Sirait, stated that the extension of the subsidized housing loan period was carried out under the direction of President Prabowo Subianto.
“Following the direction of the President and Mr. Hasyim, we must prioritize the people. Therefore, we are extending the housing installment period for Indonesians to 30 years instead of the previous 20 years,” said the minister, who is widely known as Ara.
Ara explained that the move is part of the government’s broader effort to accelerate the implementation of the 3 million housing program, which has become a national priority. Extending the loan tenure is expected to reduce the financial burden on low-income households (MBR) when purchasing subsidized homes.
“How can we also encourage purchasing power? One of the ways is by designing a 30-year installment scheme so that the repayment period is longer and the monthly payments become lower,” Ara explained.
In addition, the government is preparing several supporting measures, including land provision and financing schemes involving various stakeholders. One of the locations being prepared is in the Meikarta area, Cikarang.
The Ministry of Housing and Settlement Areas is collaborating with Danantara to transform Meikarta into a subsidized housing area. Danantara Indonesia has prepared funding of up to Rp16 trillion for the development of vertical housing as part of the 3 million housing program after receiving a land grant from the Lippo Group.
Lippo Group has donated approximately 30 hectares of land in the Cikarang area, which is estimated to accommodate the construction of around 140,000 vertical housing units for low-income communities (MBR). CEO of Danantara Indonesia, Rosan Roeslani, stated that his institution will support the project’s financing while also opening opportunities for collaboration with various parties, including state-owned construction companies and private firms.
“From the financing side, we will fully support it because this is also a very good project, and if we look at it, the supply and demand are both very large,” he explained.
In the initial stage, the project will develop housing on 12.8 hectares of land. The site is planned to host around 18 vertical residential towers, each projected to have 32 floors. With this development plan, the project’s investment value is estimated to reach Rp14–16 trillion.
Rosan added that, in addition to providing financing support, Danantara will also encourage collaboration between state-owned construction enterprises and the private sector in developing the project.
“So in terms of financing we will fully support it, and we also have state-owned construction companies that can participate in this project, of course together with other private companies. We will collaborate,” he concluded.
