Government raises income threshold for low-income groups (MBR): salaries below 8 million Indonesian rupees now eligible for housing subsidies
The government has officially raised the income threshold for people belonging to the low-income groups (MBR). This policy offers more opportunities for people to receive various forms of government support, particularly through the Subsidized Home Ownership Credit (KPR) program and the National Housing Program.
This adjustment was made because the government observed changes in economic conditions over the past few years. Rising land prices, construction costs, and inflation have made it clear that the previous income threshold no longer reflects people’s purchasing power.
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Through Regulation of the Minister of Housing and Residential Areas No. 5 of 2025, the government establishes a maximum monthly income threshold for potential beneficiaries.
These provisions are structured based on the four regional zones in Indonesia and differentiated by marital status, allowing them to better align with the cost of living in each region.
For example, a single worker in Surabaya earning 8 million Indonesian rupiah per month can still be categorized as an MBR (Minor Income Earner) and qualify for a subsidized KPR (Kenya Preservation Retirement), provided he or she meets the other conditions.
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For areas with higher costs of living, such as Greater Jakarta (Jabodetabek), the government has, on the other hand, set a higher income threshold. A single worker earning 12 million Indonesian rupiah per month can still be classified as an MBR and qualify for subsidized housing.
This policy is expected to increase access to adequate housing for the population. By adjusting the income threshold, more workers who previously did not qualify are now given the opportunity to own a home through the government’s subsidy program.
In addition to helping people acquire a home, this policy is also expected to stimulate the growth of the national real estate sector, promote housing construction, and support the government’s efforts to eliminate the housing shortage in Indonesia.
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For those planning to buy their first home, this legislative change offers an opportunity worth seizing. However, potential recipients must still meet other government-established requirements, such as never having owned a home before, complying with administrative requirements, and going through the verification procedure required for the program. This ensures that the subsidy reaches those who truly need it. ***tok
