Housing KUR Ceiling For Developers IDR 5 Billion, Community IDR 500 Million

Illustration: Photo: Doc. ANTARA

JAKARTA - The government has officially issued regulations for implementing the People's Business Credit (KUR) program specifically for the housing sector.

The regulation, which was set on August 7, was in the form of a Regulation of the Coordinating Minister for Economic Affairs of the Republic of Indonesia Number 13 of 2025 concerning Guidelines for the Implementation of Housing Program Credit.

In the regulation, there are various provisions for the implementation of the Housing KUR, one of which is the loan ceiling.

Based on the regulation, the Housing KUR uses the term Housing Program Credit.

As stated in Article 1, it is stated that Housing Program Loans are investment credit/financing and/or working capital credit/financing that are given to micro, small and medium enterprises in the form of individuals/institutions or business entities that are carried out in order to support the achievement of priority programs in the housing sector.

Housing KUR Ceiling

The Housing KUR ceiling depends on the distribution scheme. The reason is, the Housing KUR scheme is divided into two, namely housing program loans on the supply of houses and housing program loans on the demand side of houses.

For housing program loans on the housing supply side, based on Article 12, it is given to recipients with a loan ceiling of more than IDR 5 million to IDR 5 billion.

As for the recipients of the housing program credit on the supply of houses, according to Article 11, it is MSMEs in the form of individuals or business entities for purposes:

a. land acquisition in accordance with the provisions of laws and regulations for the construction of houses or housing;

b. purchase of building materials for the construction of houses or housing and/or;

c. procurement of goods and services for the construction of houses or housing.

MSMEs as potential recipients of housing program credit consist of housing developers, construction service providers or building materials traders.

As for housing program loans on the home demand side, based on Article 18, it is given to recipients in the form of investment credit with a loan ceiling of above Rp. 10 million to Rp. 500 million.

The recipient, as stated in Article 17, is given to MSMEs in the form of individuals/personal needs:

a. Purchase of houses to support business activities;

b. construction of houses to support business activities; or

c. house renovation to support business activities.

Housing KUR Requirements

As for Article 11 it is written, prospective housing program credit recipients must meet the following requirements:

a. have a productive and decent business;

b. have a taxpayer principal number;

c. have NIB;

d. run a business for a minimum of 6 months;

e. there is no negative information as evidenced by the results of trading checks, community checking and/or bank checking;

f. not currently receiving KUR at the same time; and

g. not currently receiving credit from other government programs simultaneously.

Prospective housing program credit recipients can be receiving commercial credit/financing with smooth collectibility and in accordance with applicable regulations in the distribution of housing program credit.

Meanwhile, prospective housing program credit recipients, based on Article 17, must meet the following requirements:

a. have a productive and decent business;

b. have a taxpayer principal number;

c. have NIB;

d. run a business for a minimum of 6 months;

e. there is no negative information as evidenced by the results of trading checks, community checking and/or bank checking;

f. not currently receiving KUR at the same time; and

g. not currently receiving credit from other government programs simultaneously.

Prospective recipients of housing programs on the home demand side can be receiving commercial credit/financing with smooth collectibility and in accordance with applicable regulations in the housing program credit channel.

Housing KUR Interest Rate

Based on Article 13, the interest rate/credit margin for the housing program on the side of providing housing that is charged to the recipient is the difference between interest rates/margins imposed by loan distributors of housing programs and interest subsidies/margin subsidies provided by the government.

The amount of interest/margin rates imposed by housing program loan distributors is carried out in accordance with applicable regulations in the distribution of housing program loans.

The amount of the marjin interest/subsidy subsidy is determined by the minister who organizes government affairs in the financial sector.

Meanwhile, the interest rate/credit margin for the housing program on the demand side of the house, based on Article 19, is charged to Housing program credit recipients of six percent effective per year or adjusted to the equivalent interest rate/flat/anuity margin.

The government provides a margin subsidy/subsidy for a maximum credit/financing period of five years.

The amount of the marjin interest/subsidy subsidy is determined by the minister who organizes government affairs in the financial sector.

Housing KUR Period

Furthermore, as stated in Article 14, it is stated that the term of credit for housing programs on the side of providing housing includes:

a. a. a maximum of four years for credit/financing working capital or

b. a maximum of five years for investment credit/financing.

That period starts from the date of the initial credit/financing agreement with the grace period in accordance with applicable regulations in the distribution of housing program credit.

Then outside of restructuring, the loan period for the housing program on the housing supply side can be extended with the following conditions:

a. the term for working capital credit/financing can be extended to a maximum of five years or

b. the period for investment credit/financing can be extended to a maximum of seven years.

The term of time starts from the date of the initial credit/financing agreement with the grace period in accordance with applicable regulations in the distribution of housing program credit.

As for the term of credit for housing programs on the side of housing demand, based on Article 20, a maximum of five years with a grace period in accordance with applicable regulations in the distribution of housing program loans.

The term of credit for housing on the housing demand side program can be carried out longer than five years in accordance with the agreement between the recipient and the distributor of housing programs credit.

In the event that the loan period for the housing program on the side of the house demand is carried out longer than five years, the marjin interest/subsidy subsidy provided by the government for a period of five years.