JAKARTA: The government plans to increase the ceiling of its Housing Credit Programme (KPP) to 50 trillion rupiah in 2026 from the initial 36 trillion rupiah target, citing strong uptake from both homebuyers and builders.
Public Housing and Settlements Minister Maruarar “Ara” Sirait said the increase was aimed at expanding access to the programme for more people and developers.
“With disbursement already reaching around 54%, or 19.2 trillion rupiah, the 2026 Housing Credit Programme ceiling has been increased from 36 trillion rupiah to 50 trillion rupiah, so that the benefits can be felt more widely by the public and businesses,” Ara said in Jakarta on Monday.
As of June 20, 2026, KPP disbursed 19.24 trillion rupiah, equivalent to around 54% of the original target, with a total of 91,045 borrowers.
Of the total borrowers, 2,271 were businesses involved in building houses and 88,774 were homebuyers.
KPP is one of the government’s strategic programmes launched on Oct 21, 2025, to strengthen the national housing ecosystem from both the supply and demand sides.
On the supply side, the programme supports businesses in the housing sector, including developers, contractors, building material producers, material stores and micro,small and medium enterprises (MSMEs) involved in the housing supply chain.
On the demand side, the financing is intended for MSMEs seeking funds to acquire or build homes or renovate to improve the quality of their homes. Between Oct 21 and Dec 31, 2025, KPP disbursement reached 5.64 trillion rupiah, benefitting 12,175 borrowers.
Of that number, 1,237 borrowers came from the supply side and 10,938 from the demand side.
State-owned lenders accounted for the largest share of KPP disbursement at a combined 17.93 trillion rupiah, or 93% of national realisation.
Bank Rakyat Indonesia recorded the largest disbursement at 10.18 trillion rupiah, followed by Bank Tabungan Negara at 3.65 trillion rupiah, Bank Negara Indonesia at 2.03 trillion rupiah, Bank Syariah Indonesia (BSI) at 1.06 trillion rupiah and Bank Mandiri at 1.02 trillion rupiah.
Regional development banks contributed 936.17 billion rupiah in financing to 1,994 borrowers, with Bank Jateng recording the largest disbursement among regional lenders.
Private banks disbursed 370.7 billion rupiah to 120 borrowers, led by Bank Nobu.
Home Minister Muhammad Tito Karnavian said housing credit could help address the challenge of providing adequate housing, particularly in Papua, where the number of uninhabitable homes remains high.
Antonius Budi Setiawan, Bank Mandiri senior vice-president for Region XII Papua, said the bank had received a housing subsidised microcredit programme (KUR) allocation of 1.5 trillion rupiah for 2026.
As of June 15, 2026, Housing KUR disbursement by Bank Mandiri nationwide had reached 951.7 billion rupiah, or around 63% of the total allocation.
The figure consisted of 330.6 billion rupiah for the supply sector and 621.1 billion rupiah for the demand sector.
In Papua, financing for the supply sector reached 27.8 billion rupiah, of the allocated 15 billion rupiah. Demand-side financing reached 6.9 billion rupiah out of a 13.5 billion rupiah allocation.
Overall, Housing KUR disbursement in Papua reached 34.7 billion rupiah as of mid-June 2026. — The Jakarta Post/ANN
