Govt to extend subsidized mortgage tenor to 40 years - Regulations - The Jakarta Post

Regulations

President Prabowo Subianto had mandated the government to extend the repayment period from 30 to 40 years to ease homebuyers’ installment burden.

Rows of subsidized housing units are seen on Jan. 7, 2026, in Rajeg, Tangerang, Banten. (Antara/Putra M. Akbar)

The government plans to formulate a regulation that will extend the repayment period for subsidized home mortgages to 40 years. Public Housing and Settlements Minister Maruarar Sirait said President Prabowo Subianto had mandated the government to extend the repayment period from 30 to 40 years to ease homebuyers’ burden.

“This will certainly reduce the installment burden. Currently, for subsidized landed houses, the monthly installment is around Rp 1.7 million [US$97.56] for a 10-year tenor and Rp 1.4 million for 15 years. With a 20-year tenor, it can fall to around Rp 1.1 million, while a 40-year tenor can lower it further to around Rp 800,000-900,000,” he said on Thursday, as quoted by Antara.