Jakarta. The government has raised the monthly income ceiling for individuals eligible to purchase subsidized homes from Rp 8 million to Rp 13 million ($474 to $771). The move aims to broaden access to affordable housing, particularly in urban areas like Greater Jakarta, where subsidized homes are priced below Rp 200 million ($11,854) and reserved for low-income citizens.

President Prabowo Subianto has set an ambitious goal to construct 3 million homes as part of efforts to address Indonesia’s housing backlog. Of that target, 220,000 units will be built with government subsidies.

Public Housing and Resettlement Minister Maruarar Sirait announced on Wednesday that the income cap for unmarried buyers has also been increased -- from Rp 7 million to Rp 12 million.

To maintain the integrity of the subsidy program, the resale of subsidized homes remains tightly regulated. These rules are designed to prevent speculative trading and ensure the homes reach the low-income families they’re meant to support.

However, under a 2019 government regulation, subsidized home ownership can be transferred under specific conditions:

1. Inheritance – Property passed on between generations.
2. Minimum Occupancy – Five years of residence for landed houses or 20 years for subsidized apartments by the original owner.
3. Relocation – In cases where the owner must move due to improved economic circumstances or work-related transfers.
4. Repossession – Transfer due to unpaid mortgage installments.

All resale transactions must go through government-appointed banks, and new buyers must still meet the required income eligibility criteria.

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