TEMPO.CO, Jakarta - Indonesian Minister of Housing and Settlement Areas Maruarar Sirait stated that the government's plan to extend the home ownership loan (KPR) tenor to 40 years will lighten the monthly installment burden for the public.
"Certainly, this can reduce the installments. For instance, with current subsidized housing, a 10-year term requires an installment of around Rp1.7 million, while a 15-year term is Rp1.4 million. If extended to 20 years, it becomes roughly Rp1.1 million, and at 40 years, it could be even cheaper at around Rp800,000 to Rp900,000," Maruarar Sirait said in Bandarlampung on Thursday, May 7, 2026, as reported by Antara.
He noted that President Prabowo Subianto has directed the home loan tenor to be extended from the previous 30-year limit to 40 years. Therefore, according to Maruarar, the government will move to adjust existing regulations accordingly.
He further explained that the government is coordinating with relevant parties to support the implementation of this extended 40-year mortgage period.
"Regulations will be prepared soon. We will formulate the framework for a 40-year home loan. It is also essential to communicate with developers, consumers, and the banking sector. This entire ecosystem must coordinate so that the rules can be implemented," he said.
According to Maruarar, in addition to easing monthly payments, extending the mortgage tenor to 40 years has the potential to expand the property market. "This is a form of government support for its people," he concluded.
Read: BI: IKN Development Drives Housing Demand in Balikpapan
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