Observer: The Ideal KPR Tenor Is 12 To 15 Years

Property Observer, Anton Sitorus (left) During The BUMN Strategy Event To Meet The Needs Of Cheap Houses For The People/Mery Handayani

JAKARTA - The subsidized home ownership credit tenor (KPR) is proposed to be shortened from the previous 20 years to 10 years.

Subsidized mortgages are given to low-income people (MBR).

Responding to this, property observer Anton Sitorus said that the too long KPR tenor would indeed harm consumers, in this case the buyer of the house.

"If it's not good over time, too, because if we, for example, have a loan installment from the bank, the longer we pay the tenor, the more we lose, the more we can. The fall end can pay double, triple," he said in a discussion on Strengthening SOEs Towards Indonesia Emas in Sarinah, Jakarta, Thursday, October 10.

However, continued Anton, if it is cut to only 10 years, of course, it will also be burdensome for buyers.

"I think 10 years is too short. If it's too fast, the installments will be big, so it's burdensome," he said.

Therefore, according to Anton, the most ideal KPR tenor is the range of years, namely 15 to 20 years for the people of Indonesia.

"So I think what has been going on since the 80s has been true between 12, 15 like that. I think for Indonesia it is the ideal between 15 or 20 years," he said.

Meanwhile, BTN's Subsidy Mortgage Division Head, Budi Permana, said the proposal to shorten the subsidized KPR tenor was possible.

Because, he continued, if you look at the history of using subsidized mortgages so far, the average repatriation of mortgages is 10 years.

"We have data that conveys that the span of 20 years is indeed quite long for subsidies. Because of the fact that an average of 10 years has been paid off by the mortgage," he said.

Furthermore, Budi revealed that if you look historically, MBRs who receive subsidized mortgages have advanced to class in 10 years. Therefore, he said, they are no longer considered as MBR.

"We also have the fact that in 10 years we are no longer MBR. So in fact, he also no longer needs to be given subsidies," he said.