What happened
Indonesia's Minister of Housing and Settlement Areas, Maruarar Sirait, known as Ara, is preparing rules for a new subsidised mortgage. It targets people earning up to Rp 17 million a month, at an announced interest rate of 6%. He told reporters in Jakarta on Friday, 9 October 2026, that the regulation is being drafted.
Ara said he has arranged a meeting with Finance Minister Suahasil Nazara. They will discuss the rules and support for the squeezed middle class, people who earn too much for older subsidies yet struggle to buy at market prices.
“We will prepare the rules. I have agreed with the finance minister to meet and discuss the regulation,” Ara told reporters.
What has been said and what is still open
Coordinating Minister for Economic Affairs Airlangga Hartarto first announced the plan at a press conference on 1 October 2026. He said people with a fixed income of around Rp 17 million would be able to borrow at 6%.
Ara added that his ministry will review existing regulations and, if needed, offer extra incentives to help people buy decent homes.
Timing is the big unknown. It is not yet clear whether the scheme can launch next year. Heru Pudyo Nugroho, a commissioner at BP Tapera, the state public housing savings agency, said the agency is still studying the details with the head of BPS, the national statistics agency.
How it differs from current loans
In Indonesia a mortgage is called KPR, short for kredit pemilikan rumah, or home ownership credit. With a subsidised KPR the state covers part of the interest, so the borrower pays less than the market rate.
Indonesia already runs a subsidised mortgage programme. It charges 5% for landed houses and 6% for flats in apartment blocks, known as rusun. According to detikProperti, homes bought under the subsidy can cost up to Rp 500 million.
What the new plan changes is who qualifies. It extends support to households with higher incomes, up to Rp 17 million a month.
The scheme is due to be launched through a regulation of the coordinating minister, which the outlet says is being prepared. It is therefore not yet law, and its terms could still change.
Who does what
The housing ministry sets housing policy and writes the programme rules. The finance ministry decides how much subsidy the budget can carry. BP Tapera manages workers' housing savings and helps fund subsidised lending.
BPS data are needed to estimate how many people fall under the new income ceiling. That number will drive the cost of the programme.
What it means for Bali
The scheme is designed for Indonesian citizens on fixed salaries and for homes priced up to Rp 500 million. That is the mass housing segment. It does not overlap directly with leasehold villas sold to foreigners. Leasehold, or Hak Sewa, is a long term lease of land.
There could be indirect effects. If the programme starts, local workers would find it easier to buy their own homes. On Bali that includes hotel, villa and restaurant staff, many of whom now rent near where they work.
For builders of affordable housing on the island, the scheme could widen the pool of buyers. Until a signed regulation exists, though, those hopes should not go into any financial model.