Requirements for Purchasing Subsidized Housing in Indonesia: A Comprehensive Guide
worldreview1989 - The Indonesian government provides subsidized housing programs, typically through subsidized mortgage schemes like the Housing Financing Liquidity Facility (FLPP) or Down Payment Assistance Subsidy (SBUM), to assist low-income citizens (Masyarakat Berpenghasilan Rendah or MBR) in owning their first home. These programs are generally implemented in collaboration with partner banks, such as Bank BTN (Bank Tabungan Negara).
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| Requirements for Purchasing Subsidized Housing in Indonesia: A Comprehensive Guide |
While specific terms may vary slightly depending on the prevailing government policy and the implementing bank, there are several fundamental requirements that prospective buyers must meet to be eligible for subsidized housing. Understanding these criteria is the first crucial step toward realizing the dream of homeownership.
I. Primary Eligibility Criteria
The core requirements focus on the applicant's citizenship, age, marital status, income level, and current property ownership status.
1. Citizenship and Residency
Indonesian Citizen (WNI): The program is exclusively for Indonesian citizens. Proof of citizenship, typically via a valid KTP (Identity Card), is mandatory.
Residency: Applicants must be domiciled in Indonesia.
2. Age and Marital Status
Minimum Age: The applicant must be at least 21 years old or already married.
Maximum Age: The age of the applicant, at the time the credit matures (loan due date), generally must not exceed 65 years. For specific groups, like ASABRI participants with a recommendation from YKPP, the maximum age may be extended to 80 years at the time the credit is due.
3. Income Limitations (Low-Income Status)
Subsidized housing is specifically for the MBR segment, meaning applicants must have an income below a maximum limit set by the government. This maximum limit is subject to periodic changes and may vary based on the type of house (landed house vs. apartment/flat).
Maximum Income: While the figures have been subject to updates, typical recent caps have been around:
Maximum monthly income for Landed Houses (Rumah Sejahtera Tapak): Up to around IDR 4,000,000 to IDR 8,000,000 (depending on the region and specific scheme).
Maximum monthly income for Apartments/Flats (Rumah Sejahtera Susun): Often higher than landed houses, such as up to IDR 7,000,000 to IDR 13,000,000 (depending on the region and specific scheme).
It is crucial to check the latest maximum income limits as they are updated periodically by the Ministry of Public Works and Housing (Kementerian PUPR).
4. Property Ownership and Previous Subsidies
First-Time Home Buyer: Neither the applicant nor their spouse (husband/wife) must currently own a house or private residence. This is a fundamental principle of the program—to assist those who genuinely need a place to live.
No Prior Government Housing Subsidy: The applicant and their spouse must have never received any housing financing subsidy or assistance from the government, such as previous KPR (Kredit Pemilikan Rumah) subsidies, including FLPP or BP2BT, among others.
Exceptions may apply, for instance, for members of the TNI/Polri/PNS (Indonesian Military/Police/Civil Servants) who are subject to reassignment and are allowed a second-time application under specific conditions.
5. Employment/Business History
Minimum Work/Business Period: Applicants must typically be able to prove that they have been employed or running a business for a minimum period, commonly at least 1 year for employees (fixed income) and at least 1 to 2 years for self-employed individuals (non-fixed income).
II. Required Documentation and Financial Status
A successful application hinges on the submission of complete and valid personal, financial, and tax documents.
1. Personal and Identity Documents
KTP (e-KTP): Valid Identity Card of the applicant and spouse (if married). Must be registered with Dukcapil (Directorate General of Population and Civil Registration).
KK (Kartu Keluarga): Family Card.
Marriage Certificate/Divorce Deed: For married or divorced applicants.
Passport Photos: Recent photos of the applicant and spouse.
Domicile Certificate: Required if the current residential address differs from the KTP address.
2. Financial and Income Documents
Income Proof:
For Employees (Fixed Income): Latest salary slips (e.g., last 3 months) or an official Income Certificate, and a photocopy of the Permanent Employee Appointment Letter (SK Pengangkatan Pegawai Tetap) or Work Certificate.
For Self-Employed/Entrepreneurs (Non-Fixed Income): SIUP (Trade Business License) or other relevant business licenses, financial statements or records for the last 3 months, and a copy of the practice permit (for professionals).
Bank Account Statement/Current Account: Statements for the last 3 months.
Declaration of Income: A signed statement of income acknowledged by the employer's head or the local village head/lurah (for non-fixed income).
3. Tax and Legal Documents
NPWP (Nomor Pokok Wajib Pajak): Taxpayer Identification Number.
Annual Personal Income Tax Return (SPT PPh 21): Proof of tax compliance as per regulations.
4. Housing-Specific Statements
Declaration of No House Ownership: A formal letter or statement, often acknowledged by the employer or the local village head/lurah, confirming that the applicant does not own a house.
Completed Application Form: The subsidized mortgage (KPR) application form from the implementing bank (e.g., BTN).
5. Credit Feasibility
Good Credit Record (SLIK Check): The bank will conduct a credit assessment (formerly BI Checking, now through the Financial Information Service System or SLIK). Applicants must have a good credit score with no history of bad credit or overdue loan repayments to be deemed financially feasible.
III. House and Developer Requirements
Beyond the personal criteria, the property itself must also meet certain standards under the subsidized housing program:
Developer Registration: The developer of the subsidized housing project must be registered with the Ministry of Public Works and Housing (Kementerian PUPR).
House Specifications: The house must conform to government-regulated specifications, including maximum building and land area (e.g., maximum building area of 36 square meters and maximum land area of 60 square meters).
Selling Price Cap: The selling price of the house must adhere to the maximum price limit set by the government for its specific region in Indonesia.
Restrictions on Use and Transfer: The property must be used strictly for residential purposes by the buyer. It generally cannot be transferred, sold, or rented out to another party for a minimum period, typically 5 years from the date of purchase, to ensure the subsidy reaches its intended recipient.
Conclusion
Purchasing subsidized housing in Indonesia is a structured process designed to maximize the impact of government assistance for low-income citizens. The requirements are clearly defined, focusing on ensuring the applicant is a genuine MBR who is a first-time home buyer with stable finances and a clean credit history. Prospective buyers should meticulously prepare all necessary documents and ensure they meet the latest income and age requirements before submitting their application to the partner bank.