What the government announced
The Indonesian government is drafting a rule that would open subsidised mortgages to people earning up to Rp 17 million a month. The interest rate for this group would be 6%. The income ceiling of the current subsidy programme is considerably lower.
Housing and Settlement Areas Minister Maruarar Sirait told reporters in Jakarta on Friday, October 16, 2026, that he will meet the finance minister and BP Tapera, the state housing savings agency. The agenda is the legal framework. The minister stressed that regulation must come first, so the idea does not remain just talk.
On October 1, 2026, Coordinating Economic Minister Airlangga Hartarto described the same target group: people with a fixed income of up to roughly Rp 17 million and a 6% rate. A similar scheme had earlier been prepared for people without a fixed salary who run their own small business.
Who gets subsidised homes today
BP Tapera commissioner Heru Pudyo Nugroho described the current demand structure. About 94% of subsidised homes go to buyers earning Rp 3-8 million a month. Buyers earning Rp 8-10 million take about 4%, and those earning Rp 10-14 million only 2%.
He explained why the new scheme is needed. In his words, people earning above Rp 14 million have had no suitable option so far. They buy what is available even though they would prefer a different kind of home than the standard houses made for low-income buyers. The new scheme should also cover people earning above Rp 8 million.
Which homes and on what terms
The 6% rate would apply to landed houses and to flats in multi-storey buildings (rusun). The price limit for them would differ from the limit for low-income buyers. No figures exist yet, because BP Tapera is waiting for a study by the statistics agency BPS on the maximum home price and the income threshold for state support.
Nugroho clarified the eligibility rules. The buyer must not currently own a home. A person who once sold a house, now owns nothing and can afford to buy would not be turned away. The buyer must never have received any government housing support before. Someone who already took a subsidised loan under the FLPP programme (housing finance liquidity facility) and sold the house cannot join again.
What is still undecided
The scheme is still being drafted. BP Tapera has discussed it with the office of the coordinating economic minister, a presentation is still ahead, and the Finance Ministry and other ministries have given input. A regulation, fiscal incentives and a budget allocation for them are all still required.
The commissioner could not name a start date. He said only that the agency is trying to move as fast as possible. For now these are stated intentions and not a rule in force.
Context for the market
Subsidised mortgages in Indonesia are meant for citizens. Foreigners do not take part, so there is no direct effect on villa buyers in Bali. Still, the programme shows where the government directs money: housing for the middle class rather than the premium segment.
If the scheme launches, part of domestic housing demand in large cities may shift toward new subsidised projects. The source gives no estimate of scale, so conclusions about prices would be premature.