Harmonizing Provisions on Housing Facilities for Low-Income Citizens

In order to ensure that effective housing financing is provided to low-income citizens (masyarakat berpenghasilan rendah –“MBR”), the Minister of Public Works and Public Housing (“Minister”) has issued Regulation No. 21/PRT/M/2016 on Leniencies and/or Facilities for the Securing of Housing by MBR (“2016 Regulation”). [1] The 2016 Regulation is essentially an implementation of Article 41 of Government Regulation No. 14 of 2016 on the Organization of Housing and Residential Areas (“14/2016 Regulation”), [2] which requires comprehensive guidelines regarding the provision of housing facilities to MBR via the distribution of subsidized housing mortgage loans (kredit pemilikan rumah– “KPR”) and subsidies for housing down payments (subsidi bantuan uang muka perumahan– “SBUM”), covering: [3]