Subsidized Multistory Housing Financing Scheme Reorganized by Decree of the Minister of PKP

The government, through the Ministry of Housing and Residential Area (“PKP”) has developed a financing scheme for subsidized multistory housing (“Rusun”). This regulation will be outlined in a Decree of the Minister of PKP.

“This is related to prices that have been adjusted compared to before. Previously, there had been no price adjustments,” said Director-General of Urban Housing Sri Haryati.

The Decree of the Minister related to subsidized Rusun will regulate loan interest rates, tenors, and subsidy periods. The proposed financing scheme for the development of subsidized Rusun with unit sizes of 21-45 square meters remains affordable, with an interest rate of 5 percent for units of 21-36 square meters and 7 percent for units above 36 to 45 square meters. The tenor is up to 30 years and the subsidy period is 20 years.

The Ministry of PKP formulated this policy by taking into account input from developers. This is because market players consider the current selling price of subsidized Rusun to be unattractive to the private sector.