Maruarar Sirait, Minister of Housing and Settlement Areas, signed Ministerial Decree No. 1722/KPTS/M/2026 on Criteria for Landed Public Housing under Central Government Facilitation on 6 August 2026. It revokes earlier ministerial decisions and reorganises the requirements for subsidised housing, covering terms of up to 40 years, a sale-price ceiling that stays where it was, and physical specifications and down-payment assistance that remain unchanged.
One provision inside it slipped past most coverage because it sounds procedural. Interest on a subsidised mortgage may now be set across the term at 5 percent per year, or on a tiered scheme, in line with central government policy.
The connecting word is "or". Not "and".
What actually changed
For years the appeal of a subsidised mortgage was not only the low rate but the certainty behind it: 5 percent from signing to final payment, unmoved by whatever the policy rate did. That is what let a household plan a housing payment decades ahead.
That certainty is now a choice rather than a given. A tiered scheme sets the rate at one figure for the opening period, then moves it to another figure in the period after, following a schedule written into the agreement from the beginning.
It is worth separating from a floating rate. A floating rate tracks the market and can move at any point once the fixed period ends. A tiered rate has a timetable. You should be able to read when it rises and to what, from the day you sign.
Should. That is where the difficulty sits, because the wording leaves the detail of the scheme to central government policy, which means the figures may not be in the document you are holding.
The decree does not cover commercial buyers
Worth stating plainly so nobody applies it to the wrong purchase. Decree 1722/2026 sets criteria for landed public housing, meaning homes that receive central government facilitation. A two-storey unit in the Rp 700 million range such as Emerald 70 sits outside that. Its interest structure comes from each lending bank's own policy.
So why does it matter here? Because "tiered" has just been promoted into official vocabulary, and once a term enters a government document it starts appearing in brochures, in marketing material, and in your conversation with a loan officer.
For commercial buyers the structure has been tiered all along. An offer of "fixed for two years, floating after" is tiered. The stepped promotional pricing on show at the August 2026 property expo is tiered. What was missing was the name.
Three numbers that decide your payment in year four
Most people compare mortgage offers using a single figure: the lowest rate on the brochure. That figure has the shortest life of anything in the document.
What decides the size of your payment in year four, year six, and year eleven comes down to three things, and all three belong in writing rather than in conversation.
| What to ask | Why it matters | An answer worth accepting |
|---|---|---|
| Length of each tier | Sets when the payment changes and how long you have to prepare for the difference | Firm dates or a month count, such as months 1 through 24 |
| The rate in the next tier | This drives the size of the jump, not the promotional rate at the front | A written percentage, or the reference formula if it genuinely floats |
| The basis after the final tier | Decides whether your payment stops climbing or keeps tracking the market until the loan closes | The named benchmark rate plus its margin, and whether a ceiling exists |
If the answer to the third row is "it will follow bank policy at the time", that is a legitimate answer, but it means your final tier has no ceiling. Treat it as a risk you are carrying rather than an administrative footnote.
Ask for the tier schedule in writing before signing day, not on it. At the notary's table documents are read in minutes and there is almost no room to renegotiate an interest structure.
Why this reading matters most when rates look cheap
A long promotional period feels safe, because during that window the payment really is light. The side effect is that buyers end up measuring their capacity against the lowest number they have ever been shown.
The honest measure is the rate in the highest tier. If the payment at that tier still fits your debt-service ratio, the offer is safe to take. If it only fits at the promotional rate, what you bought is a delay rather than affordability.
For a landed house in Bekasi Utara one thing does make this easier to model: the recurring monthly costs outside the loan are fairly predictable from the start. Estate maintenance fees, a 2,200 VA electricity connection, and the annual property tax are not figures that lurch around. The interest component is the part that moves, so that is where the attention belongs.
How to read the difference between effective and flat interest is covered separately in our guide to effective versus flat annuity interest, and the two pieces sit alongside each other. The calculation method is a different question from the tier schedule, and both live in the same document.
What the new rules kept
In fairness, three things were preserved in Decree 1722/2026: the sale-price ceiling for subsidised housing was not raised, the physical specification of the house stayed as it was, and the down-payment assistance amount was left unchanged. Borrowers on subsidised mortgages also keep room to settle early rather than waiting out the full term.
The 40-year term is covered from the long-run interest side in our article on 40-year mortgage terms. Put together with a tiered scheme, the two interact: a longer term leaves every tier increase more remaining months to work with.
Note: this article is general and educational, not financial advice or a bank quotation. The provisions cited come from Ministry of Housing and Settlement Areas Decree No. 1722/KPTS/M/2026 dated 6 August 2026 and may change. The interest structure for your own application is set by the lending bank, so confirm it with them before signing.
Four things to get in writing before you sign
- The full tier table, with the period and the percentage for every tier through to the last one.
- The name of the benchmark rate used once the promotional period ends, along with its margin.
- Whether an interest ceiling exists and, if so, what it is.
- The early-settlement terms: when it is allowed, and what the penalty is if you settle before the promotional period ends.
That fourth point gets skipped even though it pairs with the first. Knowing your payment climbs in year three is of little use if settling early carries a penalty that erases the saving.
The rest of the paperwork that derails a signing at the last minute is collected in our signing-day checklist.
Want the mortgage structure for an Emerald 70 unit?
The Kingspoint team can walk you through the partner banks, how long each promotional period runs, and what the rate follows afterwards for ready-stock units on Jl. Raya Perjuangan, Bekasi Utara.
Chat on WhatsApp