Business · Economy · 15 hrs ago
Indonesian Developers Propose 7% Mortgage Rate for Middle-Income Buyers
Himperra proposed a mortgage subsidy for middle-income buyers in Indonesia who want homes priced from Rp250 million to Rp500 million.
The developers’ group says these buyers, including young people, often want better-quality homes near public facilities and workplaces.
The proposal would bring the rate paid by buyers to about 7%, which Himperra says is two percentage points above the rate under the FLPP housing finance program.
FLPP is a government-backed financing facility for lower-income home buyers.
A Rp300 million home’s monthly payment could fall from Rp3 million to Rp2 million, according to Himperra’s estimate.
The group says lower payments could encourage people who had put off buying a home and allow developers to build in areas with higher land costs.
The government has not announced whether it will adopt the proposal.
Himperra proposed an interest subsidy that would leave middle-income homebuyers paying about 7% interest on mortgages.
The proposal targets buyers considering homes priced from Rp250 million to Rp500 million.
Himperra chairman Ari Tri Priyono said high commercial mortgage rates are causing some prospective buyers to reconsider purchasing a home.
Ari illustrated that monthly payments on a Rp300 million home could fall from about Rp3 million to Rp2 million.
The group said the proposal is separate from the housing finance support available to low-income buyers.
- Who
- Himperra, represented by chairman Ari Tri Priyono, made the proposal.
- What
- It proposed an interest subsidy so middle-income buyers would pay about 7% mortgage interest.
- When
- The article was published on October 16, 2026; Ari spoke to CNBC Indonesia on October 15, 2026.
- Where
- Jakarta, Indonesia.
- Why
- Himperra says high commercial mortgage rates burden prospective buyers, while middle-income households seek homes with better quality, access to public facilities and proximity to work.
This story does not have two clearly opposing sides.
This story does not have a timeline yet.
- Proposed mortgage rate
- About 7%
- Target home prices
- Rp250 million to Rp500 million
- Illustrative monthly payment reduction
- Rp3 million to Rp2 million for a Rp300 million home
- Proposing organization
- Himperra
- Article publication date
- October 16, 2026
What people are saying
Our proposal for the middle-income market is to provide a subsidy so they would pay around 7%, 2% higher than FLPP.
Take a Rp300 million house whose instalments were Rp3 million; now they would be Rp2 million, which would certainly make people more interested in buying it.