Maruarar Sirait: 40-Year KPR Lightens Community Installments

BANDAR LAMPUNG - Minister of Housing and Spatial Planning (PKP) Maruarar Sirait said that the government's plan to extend the tenor of home ownership loans (KPR) to 40 years would ease installments for the public.

"The President has ordered that the 30-year KPR be 40 years, of course we will do it and adjust the regulations," said Minister of Housing and Spatial Planning (KPR) Maruarar Sirait in Bandarlampung, Thursday.

He said that there were plans to extend the loan period for home ownership to 40 years, which could ease the installments for the community, reported Antara.

"Of course this can ease the installments. If 40 years, like now, subsidized house plots, if 10 years, the installment is around Rp. 1.7 million, 15 years of installment Rp. 1.4 million. If 20 years, maybe Rp. 1.1 million and if 40 years, it can be cheaper again around Rp. 800-900 thousand," he said.

He continued that for the next regulation, the government was coordinating with relevant parties to support the plan to extend the KPR period to 40 years.

"Regulations will be prepared immediately, we will make the formula for 40-year mortgages. And we need communication with developers, consumers, banks, all of these ecosystems must coordinate so that the rules can run," he added.

According to him, in addition to easing the installment, there is also an extension of the KPR tenor to 40 years which can expand the property market.

"This is a form of government support for its people," he said.