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Jakarta Post

Govt allocates Rp 4.5t to subsidize low-income mortgages in 2018

  • News Desk

    The Jakarta Post

Jakarta   /   Thu, December 21, 2017   /   05:04 pm
Govt allocates Rp 4.5t to subsidize low-income mortgages in 2018 A backhoe excavates a plot on Dec. 12 at the site of a low-cost housing project in Cicalengka, Bandung regency, West Java. (Antara/ Raisan Al Farisi)

The government has allocated Rp 4.5 trillion (US$ 315 million) to implement a mortgage interest subsidy for low-income households next year.

The Housing Finance Fund Management Center (PPDPP), which falls under the Public Works and Housing Ministry, signed an agreement on Thursday with 40 banks that have been tasked with distributing the subsidy to low-income households seeking a mortgage loan.

Lana Winayanti, the ministry’s housing finance director general, said the fund would be disbursed under the housing financing liquidity facility (FLPP) to subsidize 42,000 low-cost houses.

“The fund will be disbursed in January,” said Lina on Thursday in Jakarta, adding that this year, the PPDPP had allocated Rp 4 trillion to the FLPP scheme.

In the last five years, the PPDPP has disbursed Rp 30.68 trillion to subsidize the purchase of 517,558 houses.

The mortgage subsidy's recipients comprise private employees (73.94 percent), civil servants (12.78 percent) and informal sector employees (7.68 percent). (sha/bbn)