Indonesia's BTN Bank Eyes 40-Year Mortgages to Lower Monthly Payments

PT Bank Tabungan Negara (BTN) is exploring a significant shift in its mortgage offerings, proposing to extend loan tenors for subsidized housing up to 40 years. This move aims to drastically reduce monthly installment burdens, potentially making homeownership accessible to a wider segment of the Indonesian population.

Nixon LP Napitupulu, President Director of BTN, indicated that if the 40-year tenor is implemented, monthly payments could hover between Rp700,000 and Rp800,000. "If the 40-year mortgage comes out, the installments could be between Rp700,000-Rp800,000. That's very cheap for people who were previously in income deciles 4-5, so they can buy a house in the future," he stated.

This initiative is part of broader efforts to increase housing accessibility. At the Danantara Housing Expo (DHE) 2026, BTN, in collaboration with Danantara Indonesia and state-owned banks, is also offering mortgages with promotional interest rates starting at 2.75% and tenors up to 30 years. Napitupulu emphasized that longer tenors help individuals who previously couldn't access mortgages become 'bankable' by easing initial payment obligations.

The proposal comes amid a substantial housing deficit in Indonesia, with Danantara reporting that 9.29 million people still lack homes and 18 million households live in substandard housing. BTN is also focusing on integrating housing developments with public transportation, such as a project in Manggarai, Jakarta, linked to a train station to reduce commuter costs.