On Friday 4 September 2026, the president director of PT Bank Tabungan Negara (Persero) Tbk, Nixon LP Napitupulu, said one sentence that explains why the 40-year mortgage term has not appeared on anyone's application form yet: "What we are waiting for today is the implementing regulation from BP Tapera."
BTN channels more subsidised mortgages than any other bank in Indonesia. When that bank says it is still waiting, the gap is easy to read. The enabling rule exists; the technical guidance that makes it operable does not. If you saw last month's headlines and put your plans on hold in Bekasi, that gap is the first thing worth measuring.
What was signed on 6 August
The longer term was approved at a Tapera Committee meeting chaired by Housing and Settlement Minister Maruarar Sirait on 24 June 2026, alongside the finance and manpower ministers. It was then written into Housing and Settlement Ministry Decree No. 1722/KPTS/M/2026 on the criteria for public housing under the government's home-ownership facility, signed by Minister Maruarar on 6 August 2026, which sets a maximum financing period of 40 years.
The interest rate did not move. The government kept it at 5 percent a year for subsidised landed houses and 6 percent for subsidised apartments, across whatever term applies. Subsidised apartments got their own package under Ministry Decree No. 23 of 2026: floor area of 21 to 45 square metres, terms up to 30 years, and selling prices adjusted per square metre by region.
So the criteria and the numbers are settled. What is missing is the BP Tapera technical guidance that banks use to reconfigure their systems, contract documents, and credit-analysis parameters.
The number behind the extension
BP Tapera commissioner Heru Pudyo Nugroho said on 3 September 2026 that FLPP disbursement, covering both landed houses and apartments, had reached 140,965 units as of 1 September, or 40.3 percent of the 350,000-unit target, with Rp 17.5 trillion disbursed.
Eight months in, take-up has not reached half the target. Roughly 209,000 units would have to be financed in the remaining four months to close the gap. Extending the term is being used as the lever, because stretching a loan is the fastest way to cut a monthly instalment without touching the interest rate or the price of the house.
A longer term does not make a house cheaper. It shifts the weight from the monthly instalment to the total interest paid before the loan is closed.
Two ceilings, and usually only one of them binds
This is the part that gets skipped. The subsidy scheme has two filters that apply at the same time, and they measure different things.
The first is the income ceiling. Low-income (MBR) criteria are split into four zones under Housing Ministry Regulation No. 5 of 2025, and Bekasi sits in Zone 4 with the rest of Greater Jakarta. A joint decision by the housing and home affairs ministers, signed on 19 June 2026, confirmed those figures.
| Zone | Region | Single | Married / Tapera member |
|---|---|---|---|
| Zone 1 | Java outside Greater Jakarta, Sumatra, West and East Nusa Tenggara | Rp 8.5 m | Rp 10 m |
| Zone 2 | Kalimantan, Sulawesi, Bali, Riau Islands, Bangka Belitung, Maluku, North Maluku | Rp 9 m | Rp 11 m |
| Zone 3 | Papua | Rp 10.5 m | Rp 12 m |
| Zone 4 | Greater Jakarta, including Bekasi | Rp 12 m | Rp 14 m |
The second filter is the price ceiling on the house. For Greater Jakarta including Bekasi, the subsidised selling price sits around Rp 185 million. That limit is attached to the property, not to you.
Now put the two numbers side by side. A couple earning a combined Rp 14 million a month still clears the Zone 4 income test. But the house they are allowed to buy under the scheme stops at roughly Rp 185 million, and in the Bekasi Utara corridor there is no ready-to-occupy two-storey house in that band.
So for most commercial-housing buyers here, the binding constraint is not the income ceiling. It is the price ceiling. Once the unit you want sits above Rp 185 million, the whole subsidy package falls away: the 5 percent rate and the 40-year term go with it. The two financing routes are compared separately in our note on the 5 percent subsidised rate versus the commercial rate.
What a longer term does to your numbers
The illustration below uses a Rp 150 million principal at a fixed 5 percent annuity rate, close to a subsidised loan profile. It shows the direction of travel, not a bank quotation.
| Term | Monthly instalment | Total paid | Total interest |
|---|---|---|---|
| 20 years | ± Rp 990,000 | ± Rp 237 m | ± Rp 87 m |
| 30 years | ± Rp 805,000 | ± Rp 290 m | ± Rp 140 m |
| 40 years | ± Rp 723,000 | ± Rp 347 m | ± Rp 197 m |
Stretching from 20 to 40 years cuts about Rp 267,000 off the monthly instalment and adds about Rp 110 million to the total interest. Those extra twenty years also run into the maximum age at final payment that banks apply, which commonly stops around 65. A borrower aged 30 is effectively capped at 35 years, and one aged 40 is capped at 25.
Which is to say the main benefit of a long term is not saving money. It sits at the entrance: a smaller instalment makes the debt-service ratio easier to clear, and that ratio is what sinks most applications. The arithmetic is in our note on the maximum instalment-to-income ratio.
When the price ceiling is the one that binds
For buyers whose target unit sits above the subsidy limit, nothing changed this week. The financing route stays commercial, and the variables that decide the outcome stay the same ones: the policy rate, your SLIK credit history, the debt-service ratio, and the appraisal.
Bank Indonesia held the BI-Rate at 5.75 percent at its August 2026 board meeting. Instalments on the Emerald 70 start from Rp 5 million a month, and at a 30 to 35 percent ratio that figure calls for household income of roughly Rp 14.3 million to Rp 16.7 million a month, joint income included. The breakdown is in our note on a Rp 5 million instalment for a two-storey house.
The commercial route does have one real deadline attached to it, and it is the government-borne VAT incentive, whose status we cover in the note on VAT relief through 2027. That calendar moves on its own, whatever BP Tapera publishes and whenever it does.
Four things worth doing while the guidance is pending
- Work out which route you are on first. Check the price of your target unit against the Rp 185 million ceiling before you check your income against the Rp 12 or 14 million ceiling. The price filter screens people out earlier.
- Ask for the term that is live today, not the one in the news. Channelling banks apply the parameters already active in their systems. A figure in a headline is not necessarily a figure on the form.
- Pull your SLIK record through iDebku. It is free, and repairing a credit score takes months rather than days.
- Clear the small instalments eating your ratio. Buy-now-pay-later balances and phone instalments feel light in a household budget and read at full weight to a credit analyst. Banks are also being more selective, as covered in our note on preparing a mortgage application.
When can the 40-year term actually be applied for?
There is no date yet. The criteria have applied since Decree No. 1722/KPTS/M/2026 was signed on 6 August 2026, but BTN said on 4 September 2026 that it is still waiting for BP Tapera's implementing regulation. Until that guidance lands, the term you can apply for is the one already active in your bank's system.
If I earn Rp 13 million, do I count as MBR?
In Zone 4, which covers Bekasi, Rp 13 million is above the Rp 12 million single-applicant ceiling but still under the Rp 14 million ceiling for a married couple or a Tapera member. So it depends on your status. Even after clearing that filter, the unit you can buy is still capped at a selling price of around Rp 185 million.
Can a commercial house use the 40-year term?
The 40-year term in this decree is attached to the subsidised public-housing scheme. Commercial mortgages follow each bank's own term policy, usually stopping at 20 to 30 years and still subject to the maximum age at final payment. Ask the channelling bank for the unit you are looking at.
Check the term and scheme that actually apply to your unit
The Kingspoint team can walk you through the maximum term currently active at the partner banks for ready stock Emerald 70 units on Jl. Raya Perjuangan, Bekasi Utara, and the documents worth preparing before you apply.
Chat on WhatsAppRelated reading on the Kingspoint Blog
- Subsidised 5% vs Commercial 5.75%: Which Mortgage Route Fits
- Debt Service Ratio: The Instalment Ceiling Banks Apply
- A Rp 5 Million Instalment for a Two-Storey House in Bekasi
- Government-Borne VAT Extended into 2027: Where the Rule Stands
- Buying Ready Stock in the Second Half of 2026
Sources: Ministry of Housing and Settlement (Tapera Committee approval, 24 June 2026; 5 percent rate for subsidised landed houses and 6 percent for subsidised apartments; Ministry Decree No. 23 of 2026); Housing and Settlement Ministry Decree No. 1722/KPTS/M/2026 on public-housing criteria, signed 6 August 2026; BP Tapera commissioner Heru Pudyo Nugroho, 3 September 2026 (FLPP disbursement as of 1 September 2026); BTN president director Nixon LP Napitupulu, 4 September 2026 (awaiting BP Tapera implementing regulation); Housing Ministry Regulation No. 5 of 2025 on MBR income ceilings by zone; Bank Indonesia (BI-Rate, August 2026). The term and instalment tables in this article are annuity-formula illustrations, not bank quotations. Subsidised price ceilings and maximum-age rules vary between channelling banks and between periods; confirm with the bank before deciding.