Government approves 40-year subsidized mortgages, fixed 5% rate
Monthly payments could fall to around Rp500 ribu-Rp700 ribu, widening eligibility for workers earning about Rp2,8 juta.
The government approved a subsidized mortgage scheme with terms of up to 40 years at a BP Tapera Committee meeting in Jakarta on Wednesday. At the same time, the interest rate for subsidized landed homes was kept at 5 percent even as the BI-rate rose, while the rate for subsidized apartments was set at 6 percent. Housing and Settlement Areas Minister Maruarar Sirait said the policy follows President Prabowo Subianto's directive to expand access to affordable homes. BP Tapera Commissioner Heru Pudyo Nugroho said the longer tenor would ease monthly installments to around Rp500 ribu-Rp700 ribu, allowing more people to meet bank affordability requirements, including those earning around Rp2,8 juta per month. The government is also preparing a quota of 350.000 subsidized homes.