Home Subsidy Installments Can Be Below Rp1 Million, Maruarar Prepares 40-Year Mortgage

JAKARTA - Minister of Housing and Spatial Planning Maruarar Sirait said that the 40-year home ownership credit scheme or KPR was prepared so that the subsidized house installments would be lighter. With the long tenor, the installment is said to have the opportunity to fall below Rp. 1 million per month.

The minister, who is familiarly called Ara, said the 40-year KPR idea was a direction from President Prabowo Subianto. The goal is simple, making it easier for people to buy a house because the monthly installment burden is smaller.

"If 40 years is indeed a good and noble goal from President Prabowo. One goal, so that the people are easier, the cost is cheaper," said Ara at the Presidential Palace Complex, Jakarta, Tuesday, July 7.

According to Ara, the plan has been discussed with a number of parties. Talks were held with Tapera, the Minister of Finance, the Minister of Manpower, the Financial Services Authority or OJK, and other stakeholders.

"We have discussed it at Tapera with the Minister of Finance and also with the Minister of Manpower, OJK, and everyone agrees to support," he said.

Ara said the government was still preparing a number of regulations before the 40-year KPR scheme could be implemented. He hopes that the process will not take long.

"Yes, we will give some more regulations. I hope it will not take too long to run," said Ara.

When asked whether the program could run this year, Ara has not given certainty. He said the government was still studying it.

"We learn, we try our best," he said.

Ara estimates that the 40-year KPR scheme can increase public interest in subsidized houses. Because, the longer the loan tenor, the monthly installment can be lower.

"Yes, it will be more interesting for subsidized houses because the installments can be lower, it can be below Rp. 1 million," he said.

In addition to 40-year KPR, Ara also touched on the role of companies investing in Indonesia in providing housing for employees. According to him, companies can take care of workers' housing, both through corporate social responsibility and direct housing provision.

He gave an example of a company in the mining sector that could also pay attention to the environment and the need for housing for its workers.

"Companies that invest, housing can also be managed, employees. Mr. Bahlil has many companies in the mining sector, can manage the environment in the form of CSR and provide housing for employees who invest in Indonesia," said Ara.

Ara has not detailed what regulations are still being prepared to run the 40-year KPR. He also has not mentioned when the scheme will be implemented.