Understanding the Rights, Obligations, and Prohibitions on Home Mortgage In Indonesia

The supply of subsidized houses spread across several provinces in Indonesia is still growing. The list is quite easy to find, can be traced through the property online sites, exhibitions, and bank partners in the channeling of government subsidized KPR funds.
There are types of mortgages, one of which is a subsidized KPR. KPR is disbursed exclusively for low-income people (MBR) -with the highest salary limits that differ depending on the area of ​​work. As an information, home Mortgage via Perumnas is available to be taken for indonesian people’s.
Questioning price, the number is quite varied depending on the location of the home subsidy itself. For example, restrictions on the sale price of subsidized homes in Sumatra in 2016 are in accordance with the Decree of PUPR no. 425 / KPTS / M / 2015 is Rp116.500.000. While the difference in Kalimantan is Rp128 million higher.
Not only that, some other material such as rights, obligations, and restrictions, also need to be considered in order to avoid misunderstanding and even problems in the future.
Debtor Rights
As an applicant, the people who propose subsidized KPR deserve some rights such as:
1. Receiving ease of acquisition of housing through subsidized KPR facility from Housing Finance Fund Management Center of Ministry of Public Works & People’s Housing, if it meets the criteria of subsidized KPR target group.
2. Free the imposition of Value Added Tax (VAT) in accordance with the provisions of the applicable Minister of Finance Regulation.
3. Prosperous homes financed by subsidized KPR in a condition ready for habitation in accordance with the provisions of applicable KPR subsidies.
Debtor’s Liability
In addition to the rights, applicants or prospective borrowers must also fulfill their obligations to the creditor banks including:
1. Paying subsidized KPR installments in an orderly and timely manner until the loan period is complete / paid off.
2. Using their own and inhabiting the subsidized house as a residence within a period of no later than 1 (one) year after the handover of the house.
3. Maintain subsidized homes well.
4. Returning FLPP’s assistance to the Housing Fund and Financing Center (PPDPP) of the Ministry of Public Works and Public Housing, in violation of subsidized KPR provisions.
5. Will not rent and / or transfer home ownership with any form of legal deed, except;
• The debtor dies (inheritance);
• Occupancy has exceeded 5 (five) years for house subsidy;
• Moving shelter due to social-economic improvement;

So, Adequate funds are not an obstacle to owning a home. The government itself has made a special policy to encourage home ownership.