Indonesia’s government will maintain the 5 percent interest rate on subsidized housing loans, defying a recent increase in the benchmark interest rate by Bank Indonesia (BI), the country’s central bank. Housing Minister Maruarar Sirait announced the decision, prioritizing affordability for citizens seeking homeownership. The move aims to shield prospective homebuyers from the impact of rising borrowing costs. Officials believe adjusting the subsidized rate would hinder the government’s housing programs and potentially slow economic growth. This policy will remain in effect despite pressure from financial institutions anticipating broader rate adjustments. The government is absorbing the cost difference to ensure continued access to affordable housing for eligible Indonesians. This decision underscores the government’s commitment to its housing initiatives and social welfare programs.