“Gen Z and young entrepreneurs are among our key target groups,” said Sri Haryati, Director General of Urban Housing, in an official statement received in Jakarta on Friday.
Sri explained that to qualify, MSME operators must hold a Business Identification Number (NIB) and have been operating for at least six months. The PKP Ministry, in collaboration with the Indonesian Young Entrepreneurs Association (HIPMI), has been promoting the program to young business owners.
According to Ministerial Regulation No. 13 of 2025 on the Criteria for Recipients and the Ecosystem of the Housing Credit Program, the KPP is designed to support MSMEs in property development, construction, and building material supply to strengthen housing provision.
The program also aims to expand the capacity of MSMEs and support activities related to purchasing, constructing, or renovating housing that forms part of their business operations.
In addition, the initiative is expected to generate more jobs and boost the housing sector’s contribution to economic growth.
The scheme is divided into two categories: supply side and demand side.
On the supply side, eligible recipients include developers, contractors, and building material suppliers.
They can apply for loans ranging from over IDR 500 million to IDR 5 billion, disbursed either in lump sums, in stages, or on a revolving basis.
On the demand side, MSMEs may use loans to support their businesses, such as by purchasing property or renting warehouses.
Loan amounts in this category range from over IDR 10 million to IDR 500 million.
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Translator: Aji, Azis Kurmala
Editor: M Razi Rahman
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