Injection Of FLPP Funds To BP Tapera Worth IDR 40 Trillion In Installments

Illustrated (Irfan Meidianto / VOI)

JAKARTA - The government through the Ministry of Public Works and Public Housing (PUPR) will transfer funds from the Housing Financing Liquidity Facility (FLPP) to the Public Housing Savings Management Agency (BP Tapera) worth IDR 40 trillion.

Director General of Public Works and Housing Infrastructure Financing of the Ministry of PUPR, Eko Djoeli Heripoerwanto, explained that currently these funds are being invested in the Housing Financing Fund Management Institute (LPDPP).

"So far, the outstanding FLPP is around Rp. 40 trillion and that is the government money that was once invested in the LPDPP. The principal repayments are paid in monthly installments and received back by the government, then transferred to Tapera as the government's portion," he said in a video conference with journalists, Friday, 5 June.

Eko explained, the transfer of funds was carried out in stages and began in 2021. As long as BP Tapera is not fully operational, the LPDPP will still operate. He explained that the transition period is no later than the next seven years or 2027, all FLPP funds must be transferred to BP Tapera.

During the transition period, existing housing finance schemes, such as FLPP, Interest Difference Subsidy (SSB), Advance Assistance Subsidy (SBUM), and Savings-Based Housing Financing Assistance (BP2BT) will continue to operate.

The plan, said Eko, is that the transfer of FLPP and other schemes to BP Tapera will be carried out gradually. Meanwhile, in the first one to two years of operation, BP Tapera will focus more on building credibility.

Furthermore, Eko explained, with so many participants joining, the cheap funds collected were also large so that BP Tapera could provide housing finance at low interest rates, with a benchmark of 5 percent.

As previously reported, BP Tapera will only finance housing for workers who are categorized as low-income people (MBR) or who do not have a first house. Meanwhile, other workers who become BP Tapera participants will not get these benefits.

However, BP Tapera guarantees that all participants will still benefit. Because, at the end of the membership period or when they retire, participants can get their savings from Tapera.