Indonesia's Housing Minister Keeps Subsidized Mortgage Rates Steady

Indonesia's Minister of Housing and Settlement Areas, Maruarar Sirait, announced that the interest rate on subsidised home‑ownership loans (KPR) will not be raised despite Bank Indonesia’s recent benchmark rate hike to 5.75% in June 2026. Sirait said the decision protects the affordability of financing for low‑income families and that no adjustment to the subsidised KPR rate has been made.

He also presented the ministry’s 2027 budget proposal of roughly Rp9.9 trillion, allocating about Rp57.3 trillion to the BSPS house‑renovation programme targeting two million units and Rp36.6 trillion to the construction of low‑income apartment towers for 50,000 units. The funding aims to expand affordable housing and sustain access to home ownership for Indonesia’s poorest households.