Government Keeps Subsidized Mortgage Rate at 5% as BI-Rate Rises
The FLPP rate stays flat until the loan ends, even after Bank Indonesia raised the BI-Rate 25 bps to 5.75%.
The government is keeping the FLPP subsidized mortgage rate at a flat 5% even after Bank Indonesia raised the BI-Rate 25 basis points to 5.75% in June 2026. Housing and Settlement Areas Minister Maruarar Sirait said the policy was taken so that home installments for low-income people remain affordable. He also said the subsidized mortgage tenor scheme of up to 40 years, directed by President Prabowo Subianto, has been discussed and can be implemented in line with regulations. So far, FLPP disbursement in 2026 has reached 78.277 units out of a target of 350.000 units, or about 22,36 percent. In a meeting with Danantara Indonesia, the government also discussed an inventory of state-owned enterprise apartment buildings, the gentengisasi program, and the completion of the Meikarta apartment project.