Indonesia expands low‑income housing subsidy eligibility

The Indonesian government has broadened the criteria for the low‑income housing subsidy (MBR). Workers earning up to Rp 8.5 million per month nationwide and married couples with combined incomes up to Rp 14 million in the Jakarta‑Bogor‑Depok‑Tangerang‑Bekasi (Jabodetabek) region now qualify for subsidised homes. The change follows the new Minister of Housing and Settlement Regulation No 5/2025, which took effect on 25 November 2024, and introduces four income zones to reflect regional cost differences. Minister of Home Affairs Muhammad Tito Karnavian said the adjustment aims to simplify home ownership for citizens and support developers in delivering affordable housing, reinforcing the “3 Million House” programme.

Developers, represented by Realestat Indonesia (REI), have called for further incentives, urging the Ministry of Home Affairs and local governments to reduce the Land and Building Acquisition Duty (BPHTB) tax. They argue that a lower BPHTB rate would complement existing subsidies, lower purchase costs, and stimulate demand in the property market.

Financing for a new 14 000‑unit project in Bogor is being backed by BTN Syariah, with projected funding exceeding Rp 4 trillion through non‑subsidised mortgages, working‑capital loans, and investment for public facilities.