ZOAHARIAN.COM – The government is preparing new regulations regarding subsidized houses that have problems and return to banking assets. Subsidized houses confiscated by banks because the previous owner failed to pay the installments have the potential to be redistributed to low-income people (MBR) through the subsidy KPR recycling scheme..

This plan was discussed at a performance evaluation meeting for the 2026 Housing Financing Liquidity Facility (FLPP) at the BP Tapera Office, Central Jakarta, Monday (21/9/2026).

BP Tapera Commissioner Heru Pudyo Nugroho said that the potential for subsidized houses that can be recycled is quite large. Some of these houses are a portfolio of non-performing loans or Non-Performing Loans (NPL) which then become bank assets.

"This recycling really has potential, because those houses are mostly NPL portfolios from banks, Sir (PKP Minister). These have become bank assets. Then the banks asked us to redistribute the subsidized houses," said Heru.

Through this scheme, BP Tapera has the potential to finance new MBRs to buy houses that previously received subsidized KPR facilities.

Later, the house will get a new identity code or number so that it can be re-entered into the subsidized housing financing scheme.

Interestingly, the houses included in this scheme are mostly from old developments. This condition means that a number of houses have relatively strategic locations compared to newly developed subsidized housing areas.

However, the house will not be immediately resold in its current condition. Heru said there would be a repair process first before the house was offered to the new MBR.

"(The public) might not want it if it is as it is," he said.

The price of the repaired house will follow the current subsidized house price.

Potential to reach 80 thousand units

Director General of Governance and Risk Control of the Ministry of Housing and Settlement Areas (PKP), H. Roberia, said the government is currently drafting a Ministerial Regulation (Permen) to regulate the subsidized KPR recycling mechanism.

This regulation will not only cover houses that have problems due to failure to pay, but also subsidized houses that are empty due to other factors, including the impact of disasters or natural factors.

"We will soon issue a draft Ministerial Regulation with recycle (KPR recycling) to also speed up subsidized housing for the people," said Roberia.

According to Roberia, the potential for problematic houses that could be included in the recycling scheme currently reaches more than 80 thousand units.

Still under review by the government

Minister of Housing and Settlement Areas (PKP) Maruarar Sirait or Ara emphasized that the plan for subsidized KPR recycling is still in the discussion stage.

He asked his staff to ensure that all mechanisms that will be implemented have a clear legal basis and do not conflict with applicable regulations.

Ara also asked for consultations to be carried out with a number of institutions, including the Financial Audit Agency (BPK), the Financial and Development Supervisory Agency (BPKP), as well as law enforcement officials.

"Make sure, Mr. Robe (and) Mrs. Sri (PKP Director General) will go to BPK, BPKP regulations are correct yes, also to APH, police, prosecutors, KPK yes," said Ara.

The government then scheduled a follow-up discussion for Friday (25/9/2026). The meeting will involve various parties in the housing ecosystem, from developers, banks, associations, to the community.

It is hoped that this discussion will produce a scheme that can accelerate the reuse of problematic subsidized houses while opening up access to housing for new MBR.