BP Tapera to extend FLPP housing financing tenure to 40 years

BP Tapera is accelerating plans to extend the tenure of the Housing Financing Liquidity Facility (FLPP) to 40 years for both landed houses and apartments. This initiative, directed by President Prabowo Subianto, aims to make homeownership more accessible by reducing monthly installments. Under the proposed single scheme, landed houses would maintain a 5 percent interest rate, while apartments would carry a 6 percent rate with a 75:25 funding ratio.

The Financial Services Authority (OJK) noted that the extended credit period presents a significant opportunity for the life insurance industry to increase premium income through credit life insurance products. However, OJK Executive Head Ogi Prastomiyono cautioned that insurers must implement prudent risk management and accurate actuarial calculations to handle the longer exposure to potential claims over the extended coverage period.