Government Raises Housing Credit Ceiling to Rp 20 Billion, Hipmi Welcomes Move
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JAKARTA, Investortrust.id — The Indonesian government has raised the ceiling for People’s Business Credit in the housing sector to Rp 20 billion, a decision that has been welcomed by the Indonesian Young Entrepreneurs Association (Hipmi). The move, announced on Sunday, Sept 7, 2025, aims to expand financing access for medium-scale micro, small, and medium enterprises (MSMEs) such as contractors, developers, and building material stores.
Hipmi Chairman Akbar H Buchari praised President Prabowo Subianto’s administration for broadening the program, which had previously been criticized for focusing only on small-scale businesses. He said earlier versions of the program, also known as KUR and managed by state-owned banks under the Himbara consortium as well as private banks, were limited to loans between Rp 100 million and Rp 500 million, insufficient for medium-scale entrepreneurs.
“Today, President Prabowo through the Minister of Housing and Settlements has proven that MSMEs in the middle tier can access financing of up to Rp 20 billion, and this is something we highly appreciate,” Akbar said during the Socialization of the Housing Credit Program held in South Jakarta.
At the same event, Minister of Housing and Settlements Maruarar Sirait underscored the government’s commitment to provide financing between Rp 5 billion and Rp 20 billion per entrepreneur. He stressed that the scheme was specifically designed for business actors in construction and housing supply chains, enabling stronger participation of medium enterprises in the sector.
“Hipmi has taken this seriously, preparing its members and even non-members to seize the opportunity, especially by driving demand. This shows Hipmi also cares about ordinary people. It is good news from President Prabowo that this housing credit program is now officially launched,” Maruarar said.
Mobilizing Private Sector
Maruarar Sirait said the government had brought in the private sector and philanthropic foundations to accelerate the provision of decent housing through the Self-Help Housing Stimulus Assistance (BSPS) program and the Housing Financing Liquidity Facility (FLPP). The initiative, announced on Sunday, Sept 7, 2025, is designed to improve more than 26 million uninhabitable homes across the country and build 400,000 new units by 2026.
Minister of Housing and Settlements Maruarar Sirait said the step was necessary to address limited fiscal space in the state budget for housing development. He explained that BSPS, commonly referred to as the “home renovation” program, would no longer rely solely on state funds but also receive contributions from the private sector and philanthropic groups.
“The majority is BSPS because we have more than 26 million homes that are uninhabitable. That is our target, supported not only by the state budget but also by ‘private BSPS’ from entrepreneurs and foundations such as Buddha Tzu Chi and the Indonesian Chamber of Commerce and Industry (Kadin),” Maruarar said after attending the Socialization of the Housing Credit Program with Hipmi in South Jakarta.
The Ministry of Housing and Settlements has secured an additional Rp 10.9 trillion budget approved by Commission V of the House of Representatives. Of that, Rp 8.9 trillion will be dedicated to BSPS in 2026, with a target of rehabilitating and building 400,000 housing units.
Maruarar emphasized that the government is actively mobilizing private-sector participation to meet these targets faster. The “private BSPS” model allows businesses to contribute in funding, building materials, or workforce support.
Beyond BSPS, the FLPP scheme—subsidized mortgages for low-income families—will now also involve private banks. PT Bank Central Asia Tbk, or BBCA, and PT Bank Nationalnobu Tbk, or NOBU, have expressed readiness to participate alongside state-owned banks in distributing FLPP loans.
“So now we have private FLPP and private BSPS. This is the embodiment of President Prabowo’s concept of ‘Berbaginomics,’ not ‘Greednomics,’ with many stakeholders joining forces to support the people,” Maruarar said.
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