Minister of PKP ensures that the 40-year KPR rules will be completed by 2026

JAKARTA - The Ministry of Housing and Spatial Planning (PKP) has ensured that regulations regarding home ownership credit schemes (KPR) with a tenor of up to 40 years will be completed and will begin to be implemented this year.

Minister of PKP Maruarar Sirait (Ara) explained that this tactical step was taken to provide legal certainty and at the same time expand access to more affordable housing financing for the community.

Until now, the formulation of the new policy has entered the finalization stage with stakeholders.

"The principle is not to be bargained over anymore, but to be carried out in accordance with the correct governance. That must be the way. It must be immediately this year, it can't be long," said Ara at the Parliament Complex, Senayan, Jakarta, Wednesday, June 17.

Ara said that the extension of the credit period to four decades was a direct order from President Prabowo Subianto. The main focus of the regulation is to reduce the monthly installment so as not to burden the purchasing power of low-income people (MBR).

In the maturation process, the Ministry of PKP continues to intensify coordination with BP Tapera as the management body, the banking sector, to PT Sarana Multigriya Finansial (Persero) or SMF.

He added that cross-sector discussions involving the Financial Services Authority (OJK) and the Ministry of Manpower (Kemnaker) were also scheduled in the near future.

Through the integration of the joint financing scheme with Tapera and the readiness of banking liquidity, the long-term incentive structure is expected to significantly reduce the backlog of housing.

"That was the President's direction with a very good goal. Providing convenience for the people so that the installments will be lower," he explained.

Previously, President Prabowo Subianto said the government would encourage housing financing through mortgages with a longer tenor of up to 40 years.

The Head of State made the promise at the International Labor Day celebration at Monas, Jakarta, Friday, May 1, 2026. Prabowo admitted that he was concerned that labor groups spent 30 percent of their income each month to rent a place to live.

The Head of State admitted that he wanted the labor group, especially fishermen and farmers, to be able to repay mortgages with longer tenors. Thus, the allocation for housing from monthly income can be suppressed.

"If you can't do it for 20 years, 25 years. If you haven't paid off 25 years, 30 years. If you can't do it for 35 years, 40 years. Because workers can't run away anywhere, right? Farmers and fishermen, it's impossible to run away anywhere," said Prabowo quoted from the official website of the Presidential Secretariat, Wednesday, June 17.