Antara, Jakarta – The government said Friday that the subsidized mortgage interest rate would stay at 5% despite the central bank's recent move.

Bank Indonesia raised its benchmark interest rate by 25 basis points to 5.75% on Thursday. Housing Minister Maruarar Sirait told reporters that the government would make sure that housing financing remains affordable for the low-income communities.

"To this day, we have not raised it [the interest rate for subsidized mortgage]," Maruarar said.

"These subsidies are for the low-income households who deserve it."

In other words, the interest rate for the subsidized mortgages would remain at a fixed rate of 5% throughout the tenor.

Aside from the higher BI Rate, the central bank also lifted the deposit facility interest rate by 25 basis points to 4.75%. Lending facility interest rate also rose by 25 basis points to 6.5%.

Source: https://jakartaglobe.id/business/subsidized-mortgage-interest-stays-5-despite-bi-rate-hik