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View all search resultsGovt approves extending Tapera mortgage tenor to 40 years
A plan to extend the tenor of subsidized mortgages from 30 to 40 years has been given the green light as the government continues to explore potential financing schemes for implementation, including a tiered interest rate system for landed houses.
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A worker installs roof rafters on Aug. 6, 2025, at a subsidized housing estate in Bogor, West Java. (Antara/Yulius Satria Wijaya)
T
he government has approved a plan to extend the repayment period for subsidized mortgages from 30 to 40 years, in a move aimed at expanding access to homeownership for low-income families.
The decision was made during a meeting on Wednesday held by the Public Housing Savings Management Board (BP Tapera), specifically the Tapera Committee.
The committee is led by Public Housing and Settlements Minister Maruarar Sirait and its members include Finance Minister Purbaya Yudhi Sadewa, Manpower Minister Yassierli and Financial Services Authority (OJK) head Friderica Widyasari Dewi.
“We are consistent, as directed by President Prabowo Subianto, in maintaining the interest rate for landed subsidized housing at 5 percent, Rusun [low-cost apartments] at 6 percent with a tenor of up to 40 years,” Maruarar said in a statement.
The meeting also discussed several aspects of implementation, including down payments, monthly repayments and affordability.
For landed housing, the government is exploring a financing scheme under a tiered interest rate system offering estimated monthly installments of Rp 500,000 (US$27.81). Under the same mechanism, the monthly installment for subsidized apartments would be around Rp 700,000.
Maruarar said last month that extending the loan repayment period could help ease the financial burden for homebuyers.
