Indonesia expands subsidized housing eligibility with new income rules

Indonesia has significantly expanded the eligibility for its subsidized housing program by revising the criteria for low-income communities (MBR). Under the new regulations, workers earning up to Rp 8.5 million per month in certain regions, and married couples in the Greater Jakarta area (Jabodetabek) with a combined income of up to Rp 14 million, are now considered MBR and can apply for subsidized homes.

This policy adjustment is designed to broaden opportunities for citizens to acquire decent housing and to bolster the government's ambitious "3 Million Houses" program. The changes are based on Ministerial Regulation (PKP) Number 5 of 2025, which took effect on April 22, 2025. The regulation updates income limits and reclassifies regions into four distinct zones to ensure income thresholds are more aligned with the economic realities and cost of living in various areas.

Minister of Home Affairs Muhammad Tito Karnavian explained that the previous MBR income limits no longer accurately reflected current economic conditions. The zoning approach aims to create more precise income benchmarks. "This decision has been made and implemented on November 25, 2024. The goal, once again, is to make it easier for people to obtain, build houses. Or also for developers, to build houses for low-income communities at a lower price," Karnavian stated.

The new zoning system divides the country as follows: Zone 1 (Java outside Jabodetabek, Sumatra, West Nusa Tenggara, East Nusa Tenggara) has a maximum income limit of Rp 8.5 million for single individuals and Rp 10 million for married couples. Zone 2 (Kalimantan, Sulawesi, Bali, Bangka Belitung Islands, Riau Islands, Maluku, North Maluku) has limits of Rp 9 million for singles and Rp 11 million for couples. Further zones are expected to be detailed by the Public Works and Housing Ministry.

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This decision has been made and implemented on November 25, 2024. The goal, once again, is to make it easier for people to obtain, build houses. Or also for developers, to build houses for low-income communities at a lower price.