The Indonesian Ministry of Public Works and Public Housing (PUPR) continues to promote the subsidised house programme as a solution for low-income communities (MBR) to access affordable and decent living spaces. This initiative offers public housing through a mortgage scheme that includes conventional and sharia financing options.

Subsidised House: An Affordable Path to Home Ownership

According to the Directorate General of Infrastructure Financing at the Ministry of PUPR, subsidised houses are exempt from Value Added Tax (VAT) and are built to suit the financial capacity of qualifying applicants.

As one of the government's key housing initiatives, the scheme supports eligible Indonesians in owning property, an essential component of basic welfare. Homes are available across the archipelago, with prices adjusted according to the region.

Subsidised housing is available across the archipelago, with prices tailored to the region. Let's find out more about subsidised housing in Indonesia.

Subsidised House Prices in 2025 Across Indonesia

The low price factor is the attraction of subsidised housing. In addition, subsidised housing developers are also more trusted with strategic housing locations. Well, recently viral in the media the appearance of subsidised houses that are considered too small by the community. Although the government is rumoured to be reviewing the maximum land and building sizes for subsidised housing, Deputy Minister of Housing and Settlement Areas (PKP) Fahri Hamzah has clarified that no decision has been finalised.

“Actually, it has not been decided, because the truth is that the size has been increased,” Fahri said during the launch of the Sumitro Institute in Cibubur on Sunday, 1 June 2025, as reported by Tempo.

Until any revisions are confirmed, house prices remain based on the Minister of PUPR Decree No. 689/KPTS/M/2023, which outlines price ceilings for subsidised homes:

Maximum House Prices by Region (2024–2025):

• Java (excl. Jabodetabek) & Sumatra (excl. Riau Islands, Bangka Belitung, Mentawai): IDR 166 million
• Kalimantan (excl. Murung Raya, Mahakam Ulu): IDR 182 million
• Sulawesi, Bangka Belitung, Mentawai, Riau Islands (excl. Anambas): IDR 173 million
• Jakarta, Bogor, Depok, Tangerang, Bekasi, Bali, Nusa Tenggara, Anambas, Mahakam Ulu, Murung Raya: IDR 185 million
• Papua and its regions: IDR 240 million

In addition, the down payment assistance (SBUM) subsidy is IDR 10 million for Papua regions and IDR 4 million for all other areas.

Requirements for Subsidised Housing

To qualify for subsidised housing, applicants must meet a series of personal, legal, and financial criteria. These are regulated by the Minister of Housing and Settlement Regulation No. 5 of 2025, which classifies applicants by income, location, and marital status.

General Requirements:

• Must be an Indonesian citizen
• A registered resident of the same city or regency
• Have never received previous housing assistance from the government
• Not currently a homeowner
• Income must fall within MBR limits
• Applicable to both single individuals and married couples

Income Thresholds by Zone:

Zone 1 – Java (excluding Jabodetabek), Sumatra, NTT, NTB
Unmarried: IDR 8.5 million
Married: IDR 10 million
Zone 2 – Kalimantan, Sulawesi, Bangka Belitung, Riau Islands, Maluku, Bali
Unmarried: IDR 9 million
Married: IDR 11 million
Zone 3 – Papua and related provinces
Unmarried: IDR 10.5 million
Married: IDR 12 million
Zone 4 – Jakarta, Bogor, Depok, Tangerang
Unmarried: IDR 12 million
Married: IDR 14 million

The maximum house size allowed under the programme is 36 m² for public housing and 48 m² for self-help homes.

How to Apply for a Subsidised House Mortgage

Tidak hanya untuk membeli perumahan non-subsidi, program KPR juga bisa digunakan untuk membeli rumah subsidi. Ini caranya.

Step 1: Register via SiKasep

The SiKasep platform (Sistem Informasi KPR Sejahtera - Housing Subsidy Mortgage Information System) is the official government system for managing subsidised housing applications. Users must first create an account using personal data that matches their KTP (national ID). Once logged in, they can browse available housing by region, price, and developer.

Step 2: Prepare Financially and Compare Banks

Before applying, prospective homeowners should evaluate their finances, compare offers from multiple banks, and select the most suitable scheme. Participating banks include Bank BTN and other financial institutions working under the FLPP (Housing Liquidity Facility) scheme.

Available financing schemes include:

FLPP (Housing Financing Liquidity Facility)
SBUM (Subsidised Down Payment Assistance)
BP2BT (Savings-Based Housing Assistance)
Each has unique requirements and benefits, so applicants should understand their obligations before proceeding.

Step 3: Submit Mortgage Documents

Applicants will need the following:

• Photocopies of KTP, family card (KK), and NPWP
• Marriage or divorce certificate (if applicable)
• Recent payslips or income verification (3 months)
• Bank statement or proof of savings
• Employment certificate (if requested)
• Declaration of not owning a home
• Property or land ownership documents (if applicable)
• Completeness and accuracy of documents will ensure a smoother mortgage approval process.

Step 4: Bank Verification and Approval

Applicants must visit their chosen bank to formally submit their application. The bank will conduct a credit assessment, verify employment and income data, and inspect the chosen property. Once approved, applicants will sign the mortgage agreement. Funds will then be disbursed to the housing developer in accordance with the agreed timeline.

Government Support for Housing Equity

Indonesia’s subsidised housing programme serves as a key effort to promote equitable homeownership among low-income groups. With transparent requirements, regionalised pricing, and financial support mechanisms, the scheme allows more citizens to access long-term housing security.

The inclusion of tools such as the SiKasep app also reflects the government’s commitment to digitalising public services and simplifying the home-buying process.

Mortgage Application with Lets Move Group

Applying for a mortgage for subsidised housing through Let’s Move Group involves several key steps, starting with selecting a property that falls under the government-subsidised housing scheme. These homes are usually priced within the limits set by the Ministry of Public Works and Housing (PUPR), making them more affordable for first-time buyers or low-income families.

Let’s Move Group assists buyers in finding eligible properties that meet government criteria, including location, price cap, and property size. Once a property is selected, the buyer must ensure they meet the income eligibility criteria and have never received a housing subsidy before. Contact Lets Move Group, Now!!