Benefits, Requirements, and How to Apply for FLPP Subsidized Mortgage

Financial policies play an important role in determining people's ability to pay a down payment or installments.

To make it easier for people who want to buy a house, the government has launched several subsidized home ownership financing programs, or subsidized mortgages. One of them is the FLPP program.

FLPP stands for Housing Financing Liquidity Facility. KPR Bersubsidi FLPP, also known as the FLPP program, is implemented by the Ministry of Public Works and Public Housing.

Then, what is the definition of the FLPP program? Reporting from the Ministry of PUPR Information Service website, the Housing Financing Liquidity Facility (FLPP) is a housing financing liquidity facility support to MBR whose management is carried out by the Ministry of PUPR.

Reporting from the article The Role and Challenges of FLPP in the Housing Finance Sector on the official website of the Ministry of Finance, the FLPP program is a government intervention to overcome affordability and accessibility problems, especially for MBR who have limited financial capacity. Through this FLPP program, the government presents financial policies to help MBR buy and live in their own homes.

Let's take a look at the benefits, requirements, and how to apply for an FLPP Subsidized Mortgage.

What are the benefits of FLPPsubsidized mortgages?

In accordance with its purpose, the FLPP program is designed to provide a number of significant benefits so that MBR can become able to own housing. Reporting from the Ministry of PUPR's Information Service website, some of the benefits or benefits of FLPP KPR products include:

1. The interest rate for the FLPP program is a maximum of 5%
2. FLPP program interest rate is fixed throughout the loan term (with annuity calculation method)
3. FLPP program interest rates include fire insurance premiums
4. The term of FLPP mortgages is quite long, which is up to 20 years
5. There is a provision of Down Payment Assistance Subsidy for MBR who use subsidized mortgages, including the FLPP program.

Other benefits of the FLPP program include VAT-free collateral, a low down payment starting from 1%, and also low credit fees.

What are the requirements to be a recipient of theFLPP KPR Program?

In accordance with the Regulation of the Minister of PUPR No. 26/PRT/M/2016 concerning Amendments to the Regulation of the Minister of PUPR No.21/PRT/M/2016 concerning Ease and/or Assistance in Acquiring Houses for Low-Income Communities, some of the requirements for recipients of the FLPP program are:

1. Recipients of the FLPP program are Indonesian citizens and domiciled in Indonesia.
2. Recipients of the FLPP program are 21 years old or married
3. FLPP program recipients and spouses (husband/wife) do not yet own a house and have never received government subsidies for home ownership.
4. Basic salary/income of FLPP program recipients does not exceed IDR 4,000,000 for Rumah Sejahtera Tapak and IDR 7,000,000 for Rumah Sejahtera Susun.
5. Recipients of the FLPP program have a minimum working or business period of 1 year
6. Recipients of the FLPP program have a Taxpayer Identification Number (NPWP) or Annual Income Tax Return (SPT) of individuals in accordance with applicable laws and regulations

So, how do you apply for an FLPPsubsidized mortgage?

The Housing Financing Fund Management Center (PPDPP) is tasked with the distribution and management of housing finance funds under the Ministry of PUPR. Based on information on the official PPDPP website, how to apply for an FLPP Subsidized KPR is:

1. Ensure that you have met and completed all the requirements of the FLPP program.
2. Determine the location of the desired house by coming directly to the developer who built the FLPP program house in order to know the environmental and residential conditions, or
3. Visit the Implementing Bank that distributes the FLPP program directly for information on the location of FLPP program houses, as well as calculating affordable credit installments, and other facilities.
4. Make a Credit Agreement with the Implementing Bank that you have chosen (after the FLPP KPR application is approved by the Bank)

The FLPP program is only one of many financial policies aimed at addressing the housing crisis in Indonesia. In addition to the FLPP program, there is also the 0 Rupiah DP House Program, and other subsidy programs.

So, has the government's subsidy program so far helped reduce the housing backlog ? And are there other financial policies that the government should explore? To further explore the above questions, read also Not Only Construction, Financial Policies are Crucial for Providing Owned Housing.