Indonesia's BP Tapera to Launch 50:50 Housing Mortgage Scheme by Mid-2025

TANGERANG, Investortrust.id — The Housing Savings Management Agency, also known as BP Tapera, is advancing plans to introduce a 50:50 funding structure for Indonesia’s subsidized housing mortgage program (KPR FLPP). The agency aims to roll out the new scheme by the second quarter of 2025, according to BP Tapera Commissioner Heru Pudyo Nugroho.

“Currently, the funding split is 75% from the state budget (APBN) and 25% from banks. We are collaborating with banking partners to shift to a 50:50 model. We target implementation by Q2 2025,” Heru stated during a visit to Rusun Cipta Griya Kedaung in Tangerang, Banten, on Tuesday, January 14, 2025.

The initiative aims to optimize funding while maintaining affordability for low-income households. The government has allocated Rp 28.17 trillion from the 2025 state budget to finance 220,000 housing units under the 3 Million Homes program.

“With this redesigned scheme, we can enhance funding leverage while keeping homes affordable for ow-income households families and achieving a higher output leverage,” Heru said.

 

Heru noted that the shift to a 50:50 funding model is still under evaluation, requiring careful consideration with the Ministry of Finance and banking partners. “This is a critical change, and we must proceed cautiously to ensure its sustainability,” he added.

Minister of Housing and Urban Development Maruarar Sirait reaffirmed the government’s commitment to supporting developers in delivering the 3 Million Homes initiative, a key policy under President Prabowo Subianto’s administration.

“This is a collective effort. Collaboration with developers, financial institutions, and regulators is essential to achieve our housing goals,” said Maruarar, known as Ara.

The Ministry is set to formalize its approach with a memorandum of understanding (MoU) involving the Financial Services Authority (OJK) and the Directorate General of Taxes, aimed at refining financing schemes for the program.

The proposed 50:50 funding model would significantly expand the program’s reach. With the current Rp 28.17 trillion allocation, the FLPP scheme targets 220,000 units. By adopting the 50:50 model, the government could finance up to 500,000 units, an increase of 280,000 homes, requiring a total budget of Rp 49.22 trillion.

“This adjustment would enable us to address a larger share of the housing demand while ensuring the program remains financially viable,” Maruarar concluded.

The proposed changes underscore Indonesia’s commitment to addressing its housing challenges by leveraging public-private collaboration and innovative funding mechanisms.