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View all search resultsGovt to extend subsidized mortgage tenor to 40 years
President Prabowo Subianto had mandated the government to extend the repayment period from 30 to 40 years to ease homebuyers’ installment burden.
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Rows of subsidized housing units are seen on Jan. 7, 2026, in Rajeg, Tangerang, Banten. (Antara/Putra M. Akbar)
T
he government plans to formulate a regulation that will extend the repayment period for subsidized home mortgages to 40 years.
Public Housing and Settlements Minister Maruarar Sirait said President Prabowo Subianto had mandated the government to extend the repayment period from 30 to 40 years to ease homebuyers’ burden.
“This will certainly reduce the installment burden. Currently, for subsidized landed houses, the monthly installment is around Rp 1.7 million [US$97.56] for a 10-year tenor and Rp 1.4 million for 15 years. With a 20-year tenor, it can fall to around Rp 1.1 million, while a 40-year tenor can lower it further to around Rp 800,000-900,000,” he said on Thursday, as quoted by Antara.
Read also: 30-year mortgages may boost subsidized housing, but default risks loom
Maruarar added that coordination between the government and stakeholders was underway to implement the planned changes.
“We are formulating [the regulation] for 40-year mortgages. We need to engage with developers, consumers and the banking sector. The whole ecosystem must coordinate so that this can be implemented,” he said.
The minister expressed confidence that reducing monthly installments by extending the repayment period could expand Indonesia’s property market and stressed that “this is the government’s way of supporting its people”.
