New Provisions on Housing Financing for MBR under BP Tapera Regulation 1/2026

Introduction 

On 4 September 2026, the Housing Savings Management Agency (“BP Tapera”) stipulated and promulgated Regulation of the Housing Savings Management Agency Number 1 of 2026 concerning Home Ownership Financing through the Housing Financing Liquidity Facility (“BP Tapera Regulation 1/2026”). BP Tapera Regulation 1/2026 regulates the guidelines for the provision of home ownership financing through the Housing Financing Liquidity Facility (“FLPP”), including the financing disbursement mechanism, protection for Low-Income Communities (“MBR”), as well as supervision of distributing banks and the utilization of houses by debtors.

BP Tapera Regulation 1/2026 was enacted to improve housing provision services for the public while aligning the provisions on housing financing with Government Regulation Number 21 of 2024 concerning Amendments to Government Regulation Number 25 of 2020 concerning the Implementation of Public Housing Savings. BP Tapera Regulation 1/2026 revokes and declares invalid BP Tapera Regulation Number 9 of 2021 on the grounds that it is no longer consistent with legal requirements and organizational developments. Through this new regulation, the disbursement of FLPP funds sourced from the State Revenue and Expenditure Budget (“APBN”) is optimized to strengthen protection for MBR and enhance supervision in order to minimize misuse of financing facilities.

Comparison

With the enactment of BP Tapera Regulation 1/2026, several substantive changes compared with BP Tapera Regulation Number 9 of 2021 need to be taken into consideration by distributing banks and MBR, as set out in the following table:

Key Provision

• Management of FLPP Funds by BP Tapera

Article 2 explains that BP Tapera is responsible for managing FLPP Funds for housing financing for MBR through KPR Sejahtera. Article 3 provides that FLPP Funds consist of outstanding funds held by Debtors/Customers and funds that have not yet been disbursed. Furthermore, Article 4 stipulates that disbursement is carried out through distributing banks, with the risk of non-collection borne by the distributing bank and KPR Sejahtera Returns imposed based on an investment agreement between the Ministry of Finance and BP Tapera in its capacity as the Government Investment Operator. Article 5 stipulates that the source of KPR Sejahtera funds consists of a combination of FLPP Funds and distributing bank funds, with the proportion determined by BP Tapera after coordination with the Ministry of Public Works and the Ministry of Finance. Meanwhile, Articles 6 and 7 regulate the opening of special accounts to segregate the flow of receipts and management of funds. This administrative structure is simpler than the previous provisions because it no longer involves an FLPP Funds Administrative Management Bank.

• Types and Structure of KPR Sejahtera

Article 9 stipulates two types of KPR Sejahtera, namely KPR Sejahtera Tapak and KPR Sejahtera Susun, including their respective Sharia versions. Provisions concerning allocation, financing value, and down payment are further regulated in Articles 10 and 11 as follows:

• Target Group Criteria (MBR)

As stipulated in Articles 12 and 13, the Target Group comprises MBR with specified income limits who must cumulatively satisfy all of the following requirements:

• • be an Indonesian citizen;

  • be registered as a resident in one regency/municipality;

  • have never previously received a housing subsidy or housing financing assistance from the government (unless otherwise stipulated);

  • be unmarried or be a married couple;

  • not own a house; and

  • have fixed or non-fixed income that does not exceed the prescribed income limit.

The eligibility assessment and verification of the completeness of the Applicant’s requirements are carried out by the FLPP distributing bank. It should be noted that the specific exception for Civil Servants, members of the Indonesian National Armed Forces, or members of the Indonesian National Police who relocate due to official duties, which previously exempted them from the requirements of “having never previously received a subsidy” and “not owning a house,” is no longer expressly regulated under this regulation.

• FLPP Distributing Banks

Article 23 provides that BP Tapera cooperates with FLPP distributing banks to distribute KPR Sejahtera. Commercial Banks and Sharia Commercial Banks (“BUS”) interested in becoming distributing banks must pass an assessment and satisfy the requirements stipulated in Article 24, including:

• • having an account management cooperation agreement with the ministry responsible for finance;

  • having a bank soundness level of at least composite rating 3;

  • having at least 2 years’ experience in issuing KPR;

  • having adequate organizational, personnel, information technology, and credit/financing policy infrastructure;

  • having service networks at the national, provincial, and/or regency/municipality levels;

  • having a financing information system connected in real time to BP Tapera’s information system; and

  • having a plan to issue KPR Sejahtera for the current year.

Article 25 provides that prospective distributing banks submit a statement of interest together with evidence of compliance with the requirements to the Commissioner for verification by BP Tapera. Subsequently, Article 26 requires banks that have satisfied the requirements to enter into a cooperation agreement with BP Tapera for each fiscal year and report the same to the Commissioner.

• KPR Sejahtera Disbursement Mechanism

Article 27 stipulates that an Applicant applies for KPR Sejahtera through the BP Tapera system by attaching the required documents, including:

• • the Applicant’s statement and House order form from the Developer;

  • electronic Identity Card (KTP-el), family card, and marital status documents;

  • Taxpayer Identification Number (NPWP) and proof of income; and

  • bank statement and statement confirming that the spouse is not working/not earning income where the spouse is not employed

On the other hand, a photocopy of the Annual Individual Income Tax Return is no longer required. The Applicant’s statement must bear a duty stamp and must, among other things, contain a commitment to occupy the House, not to lease or transfer ownership without a legal basis, and to return the assistance funds if the statement is proven to be untrue.

Articles 28 through 32 subsequently regulate the verification and testing process as follows:

Specifically for Sharia Financing. Article 33 provides that the financing Akad may use various schemes, including wadi'ah, mudharabah, mudharabah musytarakah, murabahah, al-ijarah al-muntahiya bi-attamlik, and musyarakah mutanaqishah, with different consequences in relation to bonuses, profit-sharing ratios, Margin, and gradual ownership.

With respect to payment, Articles 35 and 36 regulate requests for payment of FLPP Funds by distributing banks and administrative testing by BP Tapera. Unlike the previous provisions, this regulation no longer expressly stipulates a testing period of 3 (three) business days.

Meanwhile, Article 37 paragraph (3) retains the provision concerning a penalty for late payment of KPR Sejahtera Returns, namely 2% (two percent) per month of the unpaid Return amount. Article 38 also provides that, in the event of early repayment, the distributing bank must report and return the repayment funds to BP Tapera within the period stipulated in the cooperation agreement.

• Implementation Control and Repayment of Financing

Articles 40 through 43 provide that BP Tapera conducts periodic and continuous control over the distribution and utilization of FLPP Funds, particularly with respect to:

• • the distributing bank’s compliance with the provisions concerning KPR Sejahtera and House eligibility;

  • the accuracy of Beneficiary targeting;

  • utilization of the House by Debtors/Customers, monitored on a sampling basis;

  • repayment of FLPP Funds; and

  • submission of disbursement reports.

The results of the control may be followed up through improvements to schemes or procedures, warning/reprimand letters, and legal proceedings. In the event of an overpayment of FLPP Funds, the distributing bank must return the overpaid amount to BP Tapera’s managed funds account (Article 42).

Article 44 further requires distributing banks to return the principal of FLPP Funds on a monthly basis in accordance with the amortization schedule, with a penalty of 2% per month for late payment. Meanwhile, Articles 45 and 46 provide that a bank must terminate KPR Sejahtera and return the FLPP Funds if there is any untruthfulness in the Debtor’s/Customer’s statement and/or the House is not utilized as a residence. Such return includes the outstanding principal and benefits of the FLPP Funds, with the method of calculating the benefits to be determined by a BP Tapera Decision. If a bank fails to comply with BP Tapera’s request for repayment, a penalty of 2% per month of the outstanding principal of the FLPP Funds will be imposed.

• Reporting, Digital Marking, and Data Protection

Distributing banks are required to prepare and submit periodic FLPP implementation reports (monthly, quarterly, semi-annually, annually, or from time to time) to the Commissioner (Article 47). As a form of transparency and supervision, Article 49 requires distributing banks to install stickers or plates bearing a digital mark on each housing unit financed with FLPP Funds. Articles 50 through 54 also regulate obligations concerning the development of information technology systems, implementation of personal data protection for Debtors/Customers, use of electronic documents, contingency procedures in the event of system disruptions (a new provision that did not previously exist), as well as procedures for using Financial Information Services System (SLIK) data of the Financial Services Authority, an entirely new provision not found in BP Tapera Regulation 9/2021, which expressly prohibits BP Tapera from using such data for purposes other than identifying financing targets and mitigating the risks of prospective Debtors/Customers, and prohibits the transmission of such data to other parties.

Transitional Provisions

Article 55 provides that KPR Sejahtera for which the credit agreement/financing Akad was signed before BP Tapera Regulation 1/2026 came into force remains valid until fully repaid, whereas applications for KPR Sejahtera that have obtained a credit/financing approval letter from the distributing bank but for which FLPP Funds have not yet been disbursed will continue to be processed under BP Tapera Regulation Number 9 of 2021 until the FLPP Funds are disbursed. Accordingly, the application of the new provisions must be assessed based on the stage of the KPR Sejahtera process at the time BP Tapera Regulation 1/2026 comes into force.

Closing

BP Tapera Regulation 1/2026 introduces several important changes to the implementation of KPR Sejahtera through FLPP, covering institutional aspects, requirements applicable to financing recipients and financing objects, the disbursement mechanism, as well as supervision and repayment of FLPP Funds. Several provisions also demonstrate a simplification of the administrative process, including the removal of the involvement of an FLPP Funds Administrative Management Bank and the elimination of certain requirements and time limits that were previously expressly regulated.

For distributing banks, these changes need to be taken into account when adjusting verification processes, information systems, reporting, monitoring of House utilization, and compliance with obligations to repay FLPP Funds. For MBR, the changes to the requirements and application mechanism for KPR Sejahtera should be carefully noted, particularly with respect to document completeness, provisions concerning House ownership and prior receipt of subsidies, and the obligation to occupy the financed House.