SMF Encourages Housing Financing Through Effective And Sustainable Business Activities

JAKARTA PT Sarana Multigriya Finansial (Persero) or SMF is committed to continuing to optimize its role and function as a Special Mission Vehicle (SMV) of the Ministry of Finance by developing an effective and sustainable business.

President Director of SMF Ananta Wiyogo said, through the expansion of the mandate that has been given by the Government, as well as various strategic steps in 2024, SMF will continue to encourage financing for the housing sector.

"Throughout 2023, SMF has carried out various efforts to support the Government's program to overcome backlog and encourage the availability of decent housing for the community in accordance with the expansion of the mandate given," he explained in his official statement, Thursday, April 4.

Based on audited financial reports, until the end of 2023, the total accumulated funds that SMF has channeled to the housing financing sector since 2005 reached IDR 103.75 trillion.

The total assets of SMF until the end of 2023 reached IDR 45.71 trillion.

This achievement was supported by loan disbursement activities amounting to Rp13.09 trillion.

Net profit in 2023 reached IDR 466 billion.

Regarding the issuance of corporate debt securities as a source of funding, during 2023, SMF has issued bonds and sukuk totaling Rp6.85 trillion through the issuance of PUB VI Phase IV Bonds, PUB VII Phase I Bonds, Sukuk Musyarakah PUB I Phase I.

Furthermore, PUB VII Phase II Bonds, PUB I Phase I Socially Involved Bonds, and Sukuk Musyarakah Socially Involved PUB I Phase I.

By the end of 2023, SMF's outstanding debt securities and sukuk reached Rp19.35 trillion and (oustanding) long-term funding from banks amounted to Rp3.90 trillion.

In addition, the company has been actively issuing debt securities from 2009 to the end of 2023, the company has issued 57 times with a total of IDR 57.27 trillion, consisting of 44 times the issuance of Bonds and Sukuk (public offering) of IDR 52.48 trillion.

Then, 12 times the Medium Term Notes (limited offers) amounted to Rp4.67 trillion, and 1 time the issuance of commercial Securities amounted to Rp120 billion.

In 2023, SMF will also show its commitment to the development of ESG (Environment, Social, and Governance) by issuing Social Bonds (Social Bonds), which is the first time it has been carried out in Indonesia.

In addition, the company issued Social-Intentioned Bonds amounting to Rp500 billion, as well as Social-Intentioned Sukuk amounting to Rp200 billion.

Regarding securitization transactions, since 2009 until now, SMF has succeeded in facilitating 17 security transactions, with a total cumulative value of IDR 14.21 trillion.

As for 2023, SMF conducted securitization with BTN with a transaction value of Rp600 billion, and with BSI to issue Sharia Asset Beragunan Securities in the form of Participation Letters (EBAS-SP) with underlying KPR assets iB BSI, which was the first in Indonesia with a transaction value of Rp325 billion.

Ananta said that of all the funds that had been disbursed, SMF had financed approximately 2 million mortgage debtors (including the FLPP program mortgage) which were divided into 85.11 percent of the western region, 13.91 percent of the central region, and the remaining 0.59 percent of the eastern region.

"In accordance with the expansion of the mandate that has been given by the Government, SMF has always played an active role and established synergies with various parties in an effort to encourage the development of the housing industry, both in terms of supply and demand," he explained.

Throughout 2023, SMF has distributed products in the context of implementing the expansion of the mandate from the Government of IDR 6.5 trillion consisting of Construction Credit, Micro Housing Credit, Business House KP, Inden/PPJB KPR, and Rental-Buyer KPR (Rent to Own).

As the Special Mission Vehicle (SMV) of the Ministry of Finance, SMF also plays an active role in easing the government's fiscal burden by financing a portion of 25 percent of FLPP mortgage funding, where SMF takes leverage on the PMN received.

In its implementation, the company synergizes with BP Tapera in providing FLPP mortgage funds which are then distributed to the public through Bank Penyalur.

From August 2018 to December 31, 2023, SMF has received State Equity Participation (PMN) funds from the Government of IDR 9.33 trillion, which is sourced from the State Revenue and Expenditure Budget (APBN).

The PMN received was then combined with the issuance of debt securities so that the company could channel FLPP mortgage financing with a value of IDR 21.64 trillion to more people in need.

In addition, the company is also active in carrying out several strategic initiatives, including homestay financing programs and housing quality improvement programs in slum areas.

Regarding the homestay financing program, throughout 2023 SMF has synergized with the Ministry of Tourism & Creative Economy in realizing the distribution of financing for 5 tourist villages consisting of 28 debtors.

Meanwhile, from 2019 to December 2023, SMF has realized a homestay financing program with a total accumulated fund flow of IDR 13.59 billion for 183 homestays in 21 fostered tourist villages located in Nglanggeran Village, Samiran Village, Kuta Village, Pagerharjo Village, Kemuning Village, Mertak Village.

Furthermore, Sarongan Village, Sukajaya Village, Tamansari Village, Bangsring Village, Sembalun Village, Wringin Putih Village, Tete Batu Village, Paputungan Village, Pahawang Village, Botubarani Village, Bongo Village, Hilisimaetano Village, Salenrang Village, and Hargotirto Village.

Regarding the realization of the program to improve the quality of houses in slum areas, throughout 2023, the company and the Directorate General of Human Settlements of the Ministry of PUPR have collaborated to renovate 115 uninhabitable houses with an absorption of a budget of Rp6.15 billion in 5 locations, namely Talumolo Gorontalo, Sukaraja Prabumulih, East Makassar Ternate, Oesapa Kupang, and Pandeglang Bay.

Meanwhile, since 2019 until now, the company has implemented a program to improve the quality of houses in slum areas of 488 houses in 21 locations with an absorption of a budget of IDR 33.8 billion.

2024 Work Plan

Regarding the 2024 work plan, Ananta said that this year SMF will continue to be consistent in strengthening its role and function in accordance with the expansion of the mandate from the Government to continue to encourage the development of financing in the housing sector through effective and sustainable business activities.

"SMF is committed to encouraging financing in the housing sector by actively contributing through effective and sustainable business activities, as an effort to support the sustainable growth of the housing sector," he said.

In an effort to optimize this, SMF will carry out several strategic steps, including the first by optimizing the expansion of the mandate, secondly maintaining liquidity and providing competitive and sustainable funding sources.

Furthermore, the third is to strengthen synergies with various housing stakeholders, the fourth is to increase HR capacity and maintain good and measurable governance and risk management.