Indonesian developers seek Rp500 million ceiling for subsidised homes
Himperra’s proposal includes mortgage rates of around 6%-8%, against the 5% flat rate currently offered under FLPP.
Indonesia’s housing developers’ association Himperra wants the government to broaden subsidised housing choices by allowing prices of up to Rp500 million. Chairman Ari Tri Priyono said the proposals covering prices, interest rates and financing had gone to the PKP minister, who requested further examination with other developers’ associations.
The proposal comes amid slow delivery through the housing financing liquidity facility, or FLPP. As of 9 October 2026, the programme had delivered 177,161 homes, representing about 50.6% of its 350,000-unit target for the year. Fewer than three months remained to reach that goal.
For the proposed price segment, Himperra is seeking mortgage rates of around 6%-8%; existing FLPP mortgages carry a flat rate of 5%. Ari said housing policy needed to take account of market demand and purchasing power. He argued that more supply would not resolve slower sales without changes to financing and simpler permitting.
A higher price ceiling is intended to let developers offer greater variety in design, quality and location. Limited housing choices near economic centres have posed difficulties for buyers, particularly younger people seeking homes closer to work.
Himperra also suggested fixing mortgage rates for the first 10 years under certain financing arrangements. Ari said some borrowers repay early when their finances improve, and repayment data could inform how government funds support other buyers. Changes would need to consider repayment capacity, continued FLPP funding and protection for low-income households.
