Inp.polri.go.id - Jakarta. Minister of State-Owned Enterprises (SOE) Erick Thohir revealed on Thursday (7/11/2024) that a new financing scheme could help citizens afford suitable and affordable housing.

“We’re promoting a financing scheme where the mortgage term, which is currently 15 years, could be extended to 30 years,” he said, as quoted by antaranews.com.

Extending the mortgage term, he explained, would result in lower, more affordable installments, benefiting not only low-income housing but also middle-class housing options.

The approach is intended to make home ownership more accessible and boost citizens’ purchasing power by allowing for extended payment terms on essential needs like housing, Minister Erick added.

Minister of Housing and Settlements Maruarar Sirat echoed the need for inter-ministerial collaboration to assist citizens in owning homes. 

Reducing Indonesia's housing backlog—which dropped from 12.75 million units in 2023 to 9.9 million—requires coordinated efforts from the government, developers, banks, and the private sector. The program aims to extend home ownership benefits to low-income and informal-sector workers.

(mg/inp/pr/nm)