Prabowo Vows 40-Year Housing Installments for Workers

President Prabowo Subianto's May Day address at the National Monument signaled a significant focus on addressing the housing needs of Indonesian workers. His commitment to extending housing installment periods to a remarkable 40 years, and ensuring these payments do not exceed current rental costs, directly tackles a major concern for many laborers.

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If the installment can be for 20 years, and if not, then 25 years; if it is not fully paid off in 25 years, then 30 years. If it's not possible, then 35 years, and even 40 years.

This policy proposal, if enacted, could fundamentally alter the landscape of homeownership for millions. By linking installment amounts to existing rental expenditures, the government aims to make the dream of owning a home attainable without imposing an additional financial burden. The emphasis on long-term, flexible payment plans reflects an understanding of the economic realities faced by many Indonesian families.

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Because workers cannot just disappear. Farmers and fishermen cannot just disappear.

Furthermore, Prabowo's directive to state-owned banks to cap loan interest rates at 5% annually is a crucial step in making credit more accessible and affordable. This move targets the predatory lending practices that often trap low-income individuals in cycles of debt. The vision of building new, integrated cities equipped with essential facilities and located near industrial zones underscores a comprehensive approach to urban development and worker welfare.

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The interest rates are ridiculously high. Right? When ordinary people borrow money, the interest can reach up to 70 percent per year.

From an Indonesian perspective, these initiatives are not just economic policies; they represent a tangible commitment to improving the quality of life for the nation's workforce. The focus on housing and affordable credit resonates deeply with the aspirations of a population striving for stability and prosperity. This is about building a stronger foundation for families and communities across the archipelago.

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A maximum [loan interest] of 5 percent per year.