Indonesia lifts housing credit program ceiling to 50 trillion IDR

Indonesia’s Ministry of Housing and Settlement (PKP) announced on 6 July 2026 that the credit ceiling for the Housing Credit Program (KPP), also referred to as the People’s Business Credit (KUR) for housing, will be raised from 36 trillion IDR to 50 trillion IDR for 2026. Minister Maruarar Sirait, commonly called Ara, said the increase reflects strong public enthusiasm and aims to broaden affordable financing for households and micro‑, small‑ and medium‑size enterprises (UMKM) involved in construction, renovation or purchase of homes.

The programme offers subsidised interest rates – 5 % on housing loans and 6 % for UMKM projects – with financing limits up to Rp 5 billion per borrower, a revolving capability up to Rp 20 billion, and smaller loans of up to Rp 500 million. Sirait linked the expansion to the government’s “three‑million‑house” target and a push to curb predatory lending by rent‑ners. The Financial Services Authority (OJK) is being asked to tighten credit‑data reporting in the SLIK system, reducing the update window from 1‑1.5 months to three days.

Separately, the Public Audit Agency (BPKP) highlighted the need for integrated oversight of all government credit schemes, including agricultural, industrial and housing loans, to ensure effective, accountable delivery of financing to the broader economy.