On 6 August 2026, Minister of Housing and Settlement Areas Maruarar Sirait signed Ministerial Decree Number 1722/KPTS/M/2026 on the Criteria for Subsidised Landed Housing under Central Government Facilitation. It is filed on the ministry's legal documentation portal with active status, and it revokes three earlier ministerial decisions dating from 2002, 2023, and 2024.
Most of the coverage stopped at two headlines: the mortgage term that can now run to 40 years, and interest that may be structured in tiers. The part people actually use to sanity-check an offer sits in the specifications, and that part rarely gets quoted in full.
The four numbers that define it
A house does not become subsidised housing because it is marketed with that word. Its status depends on whether the unit clears every threshold below, not some of them.
| Criterion | Threshold in Decree 1722/2026 | What the threshold is for |
|---|---|---|
| Effective land area | Minimum 60 sqm, maximum 200 sqm | The floor protects habitability; the ceiling stops subsidy flowing to large plots |
| Building floor area | 21 sqm to 36 sqm | Keeps the finished price under the published ceiling |
| Plot frontage width | At least 5 metres | Access, air circulation, and fire-service reach |
| Sale price ceiling | Rp 166 million to Rp 240 million, by regional grouping | Sets how much of the gap the state absorbs |
That 5-metre frontage figure is the one buyers skip most often. A plot can reach 60 sqm while running long and narrow with only 4 metres of frontage, and a plot shaped that way fails the criteria even though its total area passes.
The price ceiling did not move, and that is the part you feel
The government kept the ceilings that were already in force. The groupings run like this:
| Regional grouping | Sale price ceiling |
|---|---|
| Sumatra and Java | Rp 166 million |
| Riau Islands, Bangka Belitung, Mentawai, Sulawesi | Rp 173 million |
| Kalimantan | Rp 182 million |
| Jakarta, Bali, West and East Nusa Tenggara, Maluku, North Maluku, plus designated areas in Java and Kalimantan | Rp 185 million |
| All provinces in Papua | Rp 240 million |
Look at the fourth row. The decree splits Java across more than one grouping, so not every city in Java automatically sits at Rp 166 million. Before treating a single figure as your benchmark, confirm whether your city or regency appears on the "designated areas" list, which lives in the decree's annex. This is not paperwork trivia, because the gap between those two bands is Rp 19 million.
A ceiling that holds still while construction costs climb has a fairly predictable effect. Land cheap enough to fit a whole house under Rp 166 million gets harder to find anywhere near the centres of activity. We mapped how prices spread across Bekasi in our 2026 price map by district, and the pattern shows up clearly there.
A held ceiling does not mean subsidised house prices are standing still. What is holding still is the upper limit. What is moving is how far from the centre a unit has to be built to still fit underneath it.
Why a two-storey unit in Bekasi Utara sits outside this category
Worth stating plainly so nobody arrives with the wrong expectation. The Emerald 70 house on Jl. Raya Perjuangan falls outside the subsidised landed housing criteria, and not by a single threshold.
| Criterion | Subsidy threshold | Emerald 70 | Result |
|---|---|---|---|
| Land area | 60–200 sqm | 47.25 sqm | Below the floor |
| Floor area | 21–36 sqm | 70 sqm | Above the ceiling |
| Frontage | Minimum 5 m | 4.5 m | Below the threshold |
| Price | Rp 166 million (Java band) | Around Rp 700 million | Above the ceiling |
So if anyone offers a two-storey house in the hundreds of millions and attaches the word "subsidised" to it, the numbers above already answer that without a single phone call. Commercial units are financed through commercial mortgages, and the interest structure comes from the lending bank rather than this decree. We split the two financing routes apart in subsidised vs commercial mortgage rates.
One point that regularly causes confusion: a single cluster can contain both subsidised and commercial houses under the balanced-housing rule, and that is a separate matter from the status of any individual unit. We cover how that works in the 1:2:3 balanced housing rule.
How to check a "subsidised housing" claim before you pay anything
Ordered from quickest to check through to the ones that need documents.
- Match the price against the regional band. If the asking price clears the ceiling for its grouping, the conversation can end there. There is no version of the subsidy that prices above the cap.
- Ask for plot dimensions, not just the type number. "Type 36" refers to floor area, not land area. Ask for both, plus the frontage.
- Measure the frontage off the plot drawing. The figure sits on the site plan and is the one buyers ask about least.
- Confirm your own eligibility. The facility is aimed at people who do not yet own a home and have not previously received government housing subsidy, with limited exceptions.
- Ask which bank is channelling it. Subsidised housing is disbursed through banks partnered with the government programme. If the financing sits outside that route, what you are buying is not subsidised housing.
That fifth point is where most of the trouble starts. An in-house payment scheme wrapped in the language of subsidy is not a government programme, and it carries none of the protections attached to one.
What stayed the same
The down payment assistance amount is unchanged, and the physical specifications were retained. The provision letting recipients settle their loan at any time also remains in place.
Two other provisions from the same decree have their own write-ups: the interest side in tiered mortgage interest, and the long-tenor arithmetic in the 40-year mortgage term. All three come from the same document, and reading them together gives a fuller picture than taking them one at a time.
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 Number 1722/KPTS/M/2026 dated 6 August 2026, which governs subsidised landed housing under central government facilitation, and they may change. For the regional grouping that applies at your address, check the decree's annex through the ministry's legal documentation portal or ask the channelling bank.
Want the exact figures for an Emerald 70 unit?
The Kingspoint team can send land size, floor area, plot dimensions, and commercial mortgage terms for ready-stock units on Jl. Raya Perjuangan, Bekasi Utara.
Chat on WhatsApp