New Regulation on Interest Subsidy for Housing Program Currently Being Drafted

The government is currently harmonizing Draft Regulation of the Minister of Finance (“ Permenkeu ”) on Procedures for the Implementation of Interest Subsidy/Margin Subsidy for the Housing Credit Program (“ RPermenkeu on Housing Subsidies ”). This regulation will replace Permenkeu No. 32/PMK.02/2016 of 2016 on Procedures for the Provision, Disbursement, and Accountability of Funds for Down Payment Assistance Subsidies and Housing Credit Interest Subsidies, as amended by Permenkeu No. 10/PMK.02/2020 of 2020 (collectively referred to as “ Permenkeu 32/2016 ”).

“Substantively, the provision of interest subsidies or margin subsidies for housing credit program can improve public access to affordable housing financing,” said Unan Pribadi, as the Director of Harmonization of Laws and Regulations III (Harmonisasi Peraturan Perundang-undangan– “ HPP III ”) at the Directorate General of Laws and Regulations (Direktorat Jenderal Peraturan Perundang-undangan– “ DJPP ”) of the Ministry of Law, to Hukumonline.

In its deliberation, the RPermenkeu also clarifies the subsidy distribution mechanism, the oversight of fund utilization, and inter-agency coordination in implementing the program. This includes affirming the criteria for subsidy recipients, the procedures for calculating interest/margin subsidies, as well as transparent and accountable reporting mechanisms.

“It is currently being harmonized with regulations in the fields of finance, housing, and public administration,” he concluded.