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View all search resultsGovt launches new subsidy scheme to boost 3 million homes program
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Coordinating Infrastructure and Regional Development Minister Agus Harimurti Yudhoyono (second left) speaks at a press briefing with Nusantara Capital City (IKN) Authority head Basuki Hadimuljono (left), Public Housing and Settlements Minister Maruarar Sirait (second left) and Public Works Minister Dody Hanggodo on Jan. 21 at the Presidential Office in Jakarta. (Antara/Hafidz Mubarak A)
T
he Finance Ministry has introduced a new subsidy scheme as the government struggles to make headway on its plan to build or renovate 3 million homes a year.
The policy, based on Finance Ministry Regulation No. 65/2025, is to aid both developers and homebuyers. It was signed on Sept. 18 and took effect on Wednesday.
Individuals seeking home loans with a credit limit between Rp 10 million and Rp 100 million will be eligible for a substantial interest subsidy of 10 percent per year.
For those with higher financing needs, in the range of Rp 100 million to Rp 500 million, the subsidy is set at 5.5 percent. This support will be provided for a maximum period of five years.
On the supply side, the government seeks to incentivize developers to increase affordable housing.
The regulation stipulates that the state will cover interest costs for housing providers at an effective rate of 5 percent per year. This subsidy can be applied for up to four years for working capital loans and five years for investment loans, aiming to reduce developers' financial burden and encourage new project launches.
The subsidies will be channeled through financial institutions and credit cooperatives.
