Economy

Govt Prepares 6% Subsidized Mortgages for Rp17 Million Salaries

Stateline MEDIA Newsroom•October 17, 2026•3 min read

Indonesia is preparing a subsidized mortgage scheme with a 6 percent rate for fixed-income workers earning up to Rp17 million per month for homes up to Rp500 million. The regulation is targeted for the fourth quarter of 2026.

Key Facts

Indonesia's Minister of Housing and Settlements (PKP) Maruarar Sirait said the government is preparing a subsidized mortgage scheme for workers earning up to Rp17 million per month, with a 6 percent interest rate. The statement was made at Wisma Mandiri, Jakarta, on Friday (16/10/2026).
The new scheme sets a flat 6 percent rate for both landed houses and apartments, with a maximum house price of Rp500 million per unit.
The government will discuss the scheme with the Finance Ministry and the Public Housing Savings Management Agency (BP Tapera). The legal basis, in the form of a Coordinating Minister Regulation or Government Regulation, is targeted for issuance in the fourth quarter of 2026.
The idea was first floated by Coordinating Minister for Economic Affairs Airlangga Hartarto on October 1, 2026, as an expansion of a program originally designed for micro, small and medium enterprises (UMKM) with irregular incomes.
The current maximum salary for subsidized mortgages is Rp8 million (Rp10 million for Papua), leaving workers earning Rp8-15 million squeezed: they do not qualify as low-income households (MBR, masyarakat berpenghasilan rendah) yet struggle to buy commercial homes.
The program's budget falls under the Rp31 trillion economic stimulus package being compiled by the Finance Ministry, alongside food aid, wage subsidies, and job-loss insurance.

Salary Cap Raised to Rp17 Million

The Indonesian government is preparing a subsidized home-loan (KPR, Kredit Pemilikan Rumah) scheme for people earning up to Rp17 million per month at a 6 percent interest rate. The middle-income program will cover purchases of both landed houses and apartments.

Minister of Housing and Settlements Maruarar Sirait said discussions will involve the Finance Ministry and the Public Housing Savings Management Agency (BP Tapera). According to him, the government must prepare the legal basis before the program can be announced and implemented.

"We are raising the subsidized mortgage cap to Rp17 million. We will meet with BP Tapera and the Finance Minister, then announce it together. The regulation must be prepared first so this program does not remain mere discourse," Maruarar said at Wisma Mandiri on Friday (16/10/2026).

6 Percent Rate, Rp500 Million Price Cap

The new scheme applies a flat 6 percent rate to all landed houses and apartments priced at up to Rp500 million per unit. Previously, subsidized mortgages charged 5 percent for landed houses and 6 percent for apartments.

The Rp500 million cap is considered far more realistic for buying homes in major cities such as Greater Jakarta, Surabaya, or Bandung — well above the old FLPP (Housing Financing Liquidity Facility) ceiling of Rp166 million to Rp240 million depending on zone.

Extending subsidies to the middle class has long been discussed. BTN President Director Nixon LP Napitupulu previously cited a worker earning Rp8.1 million who was blocked by the Rp8 million low-income (MBR) threshold. A Rp100,000 difference cost that worker the subsidy.

Regulation Targeted for Q4 2026

BP Tapera Commissioner Heru Pudyo Nugroho said the draft scheme has been discussed with the Coordinating Ministry for Economic Affairs. Finalization still needs input from several ministries, regulatory preparation, and fiscal incentive and allocation arrangements.

"We have helped design the scheme and it will be presented later. There is input from the Finance Ministry, the Coordinating Ministry for Economic Affairs, and the Housing Ministry," Heru explained. He could not yet confirm when the program takes effect.

The budget sits within the Rp31 trillion economic stimulus package being compiled by the Finance Ministry, alongside food assistance, wage subsidies, and job-loss insurance. Apersi (Indonesian Housing Developers Association) Chairman Deddy Indrasetiawan welcomed the policy, saying the relaxation could revive property transactions.