On Wednesday, 30 September 2026, after a limited cabinet meeting with President Prabowo Subianto at the palace, Coordinating Minister for Economic Affairs Airlangga Hartarto announced a new subsidised mortgage (KPR) programme for salaried workers earning around Rp17 million a month. The interest rate is 6%. According to reports in CNN Indonesia and CNBC Indonesia, the scheme covers homes worth up to Rp500 million.
The target is middle-income employees, a group that has rarely had an interest subsidy on its mortgages. For buyers in Bekasi, there is one question: does Rp500 million cap the house price or the loan? The answer decides whether a Rp700-million home in Bekasi Utara is within reach.
The Closest Precedent: the KPP for MSMEs
Airlangga said the programme was originally designed for small business owners. "Previously this programme was prepared for MSMEs without a fixed income who run a business. Now it is for people with a fixed income," he said, as quoted by CNBC Indonesia.
The programme that fits that description (for MSMEs, at 6%) is the Kredit Program Perumahan (KPP, the Housing Credit Programme). It rests on Coordinating Minister for Economic Affairs Regulation No. 13 of 2025, signed on 7 August 2025, together with Housing and Settlement Minister Regulation No. 13 of 2025, which sets out who qualifies. No regulation for salaried workers has been published yet. In the meantime, the KPP rules are the closest guide:
| KPP rule (home-buyer side) | What the regulation says | Article |
|---|---|---|
| Who qualifies | Individual MSME owners with a business running at least 6 months, a tax number (NPWP) and a business ID (NIB) | Permenko 13/2025 Art. 17 |
| Use of funds | Buying, building or renovating a home "to support business activity" | Art. 17(1) |
| Ceiling | Loans above Rp10 million up to Rp500 million, one agreement only | Art. 18 |
| Interest | 6% a year, effective (reducing balance) | Art. 19(1) |
| Interest subsidy | Up to 5 years | Art. 19(2) |
| Tenor | Up to 5 years; can be longer, but the subsidy still covers only 5 years | Art. 20 |
What Does the Rp500 Million Limit Apply To?
Under the KPP, Rp500 million is the loan ceiling. Article 18(1) describes it as a loan limit "above Rp10,000,000 up to Rp500,000,000". The Housing and Settlement Minister's regulation repeats the same limit in Article 4, and its text contains no rule on house prices at all. Article 17(4) of the Coordinating Minister's regulation does hand "house limits" to the Housing and Settlement Minister, but the regulation that followed sets no price figure.
News coverage of the new scheme, however, says "homes worth up to Rp500 million". The salaried-worker version may really set a price cap, or reporters may have simplified a loan ceiling.
- If it is a price cap: homes above Rp500 million cannot use the scheme at all, whatever the down payment.
- If it is a loan cap (as in the KPP): a Rp700 million home could still qualify, provided the down payment covers the remaining Rp200 million or so.
Until the regulation is out, don't decide to buy or walk away on either reading.
Under the KPP, the Subsidy Lasts Five Years
Under the KPP, the borrower pays 6%, but the government subsidy behind that rate lasts only five years. The base tenor is also five years. Longer tenors are allowed, and Article 20(3) keeps the subsidy at five years. The regulation says nothing about the borrower's rate once the subsidy ends. Article 21(1) only says that principal and interest payments follow the agreement between borrower and lending bank.
Five years goes by fast.
Here is a simulation for a Rp500 million home with a 10% down payment, which means a Rp450 million loan. The 6% rate is calculated on a reducing balance, 0.5% a month, as a monthly annuity. The last three rows use illustrative assumptions for year six onwards, in case the bank raises the rate.
| Rp450 million loan scenario | Monthly instalment |
|---|---|
| 5-year tenor, 6% throughout | approx. Rp8.70 million |
| 20-year tenor, years 1 to 5 (6%) | approx. Rp3.22 million |
| Years 6 to 20 if the rate becomes 9% | approx. Rp3.87 million |
| Years 6 to 20 if the rate becomes 10% | approx. Rp4.11 million |
| Years 6 to 20 if the rate becomes 11% | approx. Rp4.34 million |
After five years of payments on a 20-year tenor, about Rp382 million of principal is still outstanding, because most of the early instalments go to interest. A pure five-year tenor is repaid before the subsidy ends, but an Rp8.7 million instalment eats more than half of a Rp17 million salary.
Ask the bank: what rate applies from year six? Get the answer in writing.
Where a Rp700 Million Home in Bekasi Utara Stands
Rumah Emerald 70 on Jl. Raya Perjuangan, Bekasi Utara, sells in the Rp700 million range, VAT included. If Rp500 million turns out to be a price cap, homes in this bracket stay on commercial mortgages. If it is a loan cap, a salaried buyer would need a down payment of roughly Rp200 million or more to use it, about 29% of the price.
For this price bracket, the surer incentive is the government-borne VAT (PPN DTP). In the same announcement, Airlangga said the 100% PPN DTP for homes up to Rp2 billion will continue in 2027. Homes above that, up to Rp5 billion, get the facility on their first Rp2 billion. For 2027, PPN DTP still needs a new Finance Minister regulation. We cover its status in our article on the PPN DTP extension to 2027.
Buyers who run their own business can check the existing KPP today. It requires an NIB, a business running at least six months, and a home that supports the business. Bank options for the self-employed are in our mortgage guide for MSMEs and freelancers.
Four Things to Look For in the Regulation
- The Rp500 million limit: house price or loan ceiling.
- Subsidy period: five years like the KPP, or the full tenor.
- What "income around Rp17 million" means: base salary, take-home pay, or a couple's combined income.
- Start date and lending banks: CNBC Indonesia places it in the stimulus package for Q4 2026 into 2027, but no official date has been announced.
Delaying a purchase for a scheme with no regulation yet is a gamble. The 40-year mortgage tenor already showed that the gap between an announcement and a bank product can run for months. What you can do now is calculate instalments at today's commercial rates, and treat the 6% scheme as a bonus if you end up qualifying.
Frequently asked questions
Can I apply for the 6% mortgage for Rp17 million earners yet?
Not yet. As of early October 2026 the scheme had only been announced after the 30 September 2026 cabinet meeting. The implementing regulation and lending banks have not been announced.
Can a Rp700 million home use this scheme?
Not yet clear. If Rp500 million is a house-price cap, no. If it is a loan cap as in the Housing Credit Programme, possibly, with a down payment of about Rp200 million or more. Wait for the regulation text.
Does the 6% rate last until the loan is repaid?
In the existing Housing Credit Programme, the borrower pays 6% but the government subsidy lasts at most 5 years (Coordinating Minister for Economic Affairs Regulation 13/2025, Articles 19 and 20). The regulation does not say what the borrower pays once the subsidy stops. Rules for the salaried-worker scheme have not been published.
This article draws on: Coordinating Minister for Economic Affairs Regulation No. 13 of 2025 on Guidelines for the Housing Credit Programme (7 August 2025); Housing and Settlement Minister Regulation No. 13 of 2025 on Recipient Criteria and the Housing Credit Programme Ecosystem (20 August 2025); statements by Coordinating Minister Airlangga Hartarto as reported by CNN Indonesia (30/9/2026) and CNBC Indonesia (1/10/2026). Instalment simulation calculated by the editors.
Want Emerald 70 instalments at today's rates?
The Kingspoint team can run down-payment and instalment simulations for Rumah Emerald 70 on Jl. Raya Perjuangan, Bekasi Utara, while the 6% mortgage rules are still pending.
Chat on WhatsAppRelated reading on the Kingspoint Blog
- Indonesia VAT-Free Housing Extended to 2027: The Status
- KPR Mortgages for SMEs and Freelancers 2026: Bekasi Banks Without Pay Slips
- Indonesia's 40-Year Mortgage Is Signed but Not Yet Usable
- Subsidized KPR Stays at 5% vs Commercial 5.75% in Bekasi 2026
- KPR Fixed vs Floating After BI Rate Hits 5.75%: How Long to Lock Your Rate?