Indonesia Boosts Housing Subsidy Quota to Record 350,000 Units

Indonesia is significantly bolstering its housing finance support, aiming to provide a record 350,000 subsidized homes annually through the Housing Liquidity Facility (FLPP) program. This marks a substantial increase from the previous 220,000 units per year.

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From previously 220,000 houses per year, the quota becomes 350,000 units for subsidized housing.

Minister of Public Housing and Settlements Maruarar Sirait announced the expanded quota during the Danantara Housing Expo 2026 in Tangerang. He highlighted that this move is the largest in the program's history and is crucial for broadening access to decent and affordable housing for the Indonesian populace.

Further strengthening this initiative, Bank Indonesia has eased its mandatory reserve requirement (Giro Wajib Minimum) from five percent to four percent. This policy adjustment is expected to inject around Rp 80 trillion into the market, boosting liquidity for housing finance. Additionally, the government has earmarked Rp 50 trillion for housing program financing this year, addressing both supply and demand sides of the market.

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The financing support through housing program credit this year has also been prepared at Rp 50 trillion for the supply and demand sides.

Rosan Perkasa Roeslani, CEO of Danantara Indonesia, emphasized the company's commitment to supporting President Prabowo Subianto's "Three Million Houses" program. The housing expo showcases affordable housing options, competitive financing schemes, and easier access for low to middle-income segments. Banks are offering down payments as low as one percent, interest rates starting at 2.75 percent fixed, and loan tenors extending up to 30 or even 40 years, with waived administrative, provision, and appraisal fees.

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Tenor also perhaps in banking so far only 10 years, 15 years, we can provide up to 30 years even 40 years.