Housing Loans - Mortgage Facilities and Subsidies

The Government is ratcheting up it efforts to ensure that all Indonesian's have access to at least basic housing. It is expected that the flow-on effects are considerable from the provision of better basic housing and include better compliance with spatial and city planning ordinances and facilitating increases in effective and productive human resources. Nevertheless, the policy is not simply one of throwing money at low and medium income earners but rather it is one of providing the framework for low and medium income earners to improve their own lot through housing facilities and subsidies.

The program is contained in State Minister of Public Housing Regulation No. 7/PERMEN/M/2007 and targets individuals and families who have neither owned a home nor received any housing subsidies in the past. The basic reason for this is to ensure that the system is not abused but is only exploited by those where there is a true need for the type of facilities and assistance available under this Regulation.