KMK 235/2025 Published, FLPP 2025 Quota Knocked To 350,000 Units

JAKARTA - The government has officially raised the target quota for Housing Financing Liquidity Facilities (FLPP) to 350,000 units by 2025.

This is stated in the Decree of the Minister of Finance (KMK) Number 235 of 2025 concerning Amendments to the Decree of the Minister of Finance Number 49 of 2025 concerning Determination of Details of Budget Financing in the Sub-Division of the Government Investment State Budget (999.03) for Fiscal Year 2025.

In the regulation, it is written that the FLPP quota target in 2025 was originally set at 220,000 units, now increasing by 130,000 units to 350,000 housing units.

"As a form of government support for the housing sector for the needs of providing housing for low-income people, it is necessary to add a target for the FLPP program by 2025 of 130,000 housing units, from 220,000 housing units to 350,000 housing units," the regulation reads as quoted on Friday, July 25.

The addition of the FLPP quota was also accompanied by adjustments to the investment financing allocation in the 2025 State Revenue and Expenditure Budget (APBN).

Based on the KMK attachment 235 of 2025, the government allocated IDR 35.2 trillion for the FLPP program.

Previously, the People's Savings Management Agency (BP Tapera) targeted that the allocation of subsidized housing financing or FLPP could reach 220,000 units by 2025.

BP Tapera Commissioner Heru Pudyo Nugroho revealed that the total allocation value of 220,000 FLPP quota units for the 2025 fiscal year (TA) reached IDR 18.77 trillion, sourced from the APBN.

"Later on, this allocation will be used to distribute FLPP to 220,000 housing units and is expected to contribute 2.8 percent to the MBR house ownership backlog," Heru said in a written statement, quoted on Friday, September 6, 2024.

Meanwhile, referring to the Financial Note Book II of the 2025 RAPBN, the government has designed a number of housing programs and policies to reduce the number of backlogs which are currently reported to reach 9.9 million families.

The details, starting from the determination of the interest rate tiering scheme or FLPP mortgage margin and the time limit for the subsidy period, the FLPP scheme for endowment funds, the establishment of housing funds that are managed by investment and increasing housing financing originating from non-APBN or blended financing.

If it runs smoothly, these programs are expected to be able to increase the government's fiscal leverage power and activate other sources of funds outside the state budget.