Good News For MBR, Government Officially Adds 34,000 FLPP Quota House Units This Year

Illustration. (Photo: Doc. Antara)

JAKARTA - The People's Housing Savings Management Agency (BP Tapera) revealed that the Government has officially approved the addition of a quota for Housing Financing Liquidity Facilities (FLPP) in 2024.

BP Tapera Commissioner Heru Pudyo Nugroho said the government through the Ministry of Finance had officially issued Decree of the Minister of Finance (KMK) Number 380 of 2024 concerning Amendments to KMK Number 338 of 2024 concerning Determination of Budget Financing Details in the Sub-Division of the General Treasurer Budget for Government Investment for Fiscal Year 2024 on October 3, 2024.

"We are very grateful, we have received this official letter. With the addition of a quota of 34 thousand housing units, it is hoped that it can accommodate the needs of low-income people in meeting livable and affordable houses," said BP Tapera Commissioner Heru Pudyo Nugroho in Jakarta, quoted from Antara, Wednesday 9 October.

Based on the KMK, the non-permanent government investment budget allocation for the Housing Financing Liquidity Facility (FLPP) program was set at IDR 17.02 trillion (previously IDR 13.72 trillion).

Then based on a letter containing information on the determination of the allocation of the Non-permanent Government's investment budget for the FLPP program submitted by the Directorate of Investment Management of the Director General of Treasury of the Ministry of Finance to BP Tapera, it was stated that with the issuance of this KMK, there was an additional target for the 2024 FLPP program of 34,000 housing units. So that the target for the 2024 FLPP program changed from 166,000 housing units to 200 thousand housing units.

With the issuance of an official notification submitted through the Director of Investment Management Systems, the Directorate General of Treasury of the Ministry of Finance to BP Tapera, it proves the government's commitment to answer the curiosity of housing development associations and channeling banks related to the sustainability of the FLPP program.

It was recorded from the BP Tapera database, until October 2, 2024, the FLPP financing program of 161,277 housing units worth Rp. 19.72 trillion, bringing the total distribution of FLPP from 2010 to 2024 to 1,559,856 housing units worth Rp. 146.37 trillion.

FLPP is the support for housing financing liquidity facilities for low-income people (MBR) whose management is carried out by BP Tapera.

FLPP provisions, namely fixed 5 percent interest rates for a period of time, mortgages that include life insurance premiums, fire insurance and credit insurance. Then the mortgage installments are a maximum of 20 years, down payment starting from 1 percent, and free of VAT.

The requirements for FLPP recipients, namely Indonesian citizens, have never received subsidies or housing financing assistance from the government in the form of mortgages or credit/financing for the construction of self-help houses. Then people or individuals who are not married or married couples, do not own a house, have a fixed or non-permanent income that does not exceed the maximum income limit of IDR 8 million per month refer to the decision of the Minister of PUPR No. 242/KPTS/M/2020.