What the developers proposed
On 12 October Himperra, an association of mass-market housing developers in Indonesia, published a set of proposals for the government. Chair Ari Tri Priyono said the group wants to widen the price cap on subsidised homes to Rp 500 million. The aim is to give buyers a wider choice of design, quality and location, including homes closer to city centres.
These steps are proposals only. The source names no decision by the Ministry of Housing and Settlement Areas (PKP) or the government.
Interest rates and ability to pay
According to Priyono, the tier up to Rp 500 million would carry interest of about 6-8%. That is higher than the current FLPP rate for landed homes, which is fixed at 5%. FLPP (Fasilitas Likuiditas Pembiayaan Perumahan) is a state liquidity facility that supports lower-rate home loans.
He added that a higher cap and different rates should come with a calculation of buyers' ability to pay, plus study of who receives the benefit, the financing terms and the instalment size. Another suggestion is to evaluate a fixed rate for the first 10 years under certain schemes. Some buyers, he said, repay loans early when their finances improve, and that data can help assess the programme.
Permits and the moratorium
The second proposal concerns permits. Priyono believes long procedures slow projects and raise uncertainty for developers. He gave West Java as an example, where a moratorium on housing construction still applies.
He wants housing permit authority placed under the PKP ministry, while keeping the division of powers between central and regional governments. In his words, developers need certainty to build and buyers need support to get financing easily and quickly.
Money for 100,000 homes and Rp 20 million each
The third proposal is financial. Himperra suggests considering a shift of the budget for the BSPS programme (self-help home repair aid, known as Bedah Rumah), covering 100,000 units, into FLPP. That could help reach this year's FLPP target of 350,000 homes.
The group asks for an incentive of Rp 20 million per home to reduce the price of subsidised housing. Priyono stressed this is not a developer discount but government support that strengthens people's ability to buy. He admitted that subsidised home sales have dropped sharply this year because lower-income buyers have weaker purchasing power.
What it means for the Bali market
Subsidised housing for lower-income families is not directly tied to the Bali villa market, which serves a different pool of buyers. But the story shows the state of domestic demand. If affordable home sales are falling, developers and authorities look for new tools, and talks on rates and permits could shape rules for the whole sector.
There is another link in permits. Developers' complaints about long procedures and moratoriums will be familiar to Bali investors, where checking permits and zoning remains the key step in any purchase.