BTN Boss Complains About FLPP Flowers From High SMF, Asks For Adjustments

JAKARTA - PT Bank Tabungan Negara (Persero) Tbk (BBTN) or BTN complained about the high loan interest expense from PT Sarana Multigriya Finansial (Persero) alias SMF in the housing financing liquidity facility (FLPP) scheme at Home Ownership Loans (KPR).

President Director of BTN Nixon LP Napitupulu revealed that loan interest from SMF reached 4.45 percent, while BTN could only distribute subsidized mortgages to the public with a fixed interest rate of 5 percent.

"So, both government institutions, but we ask that they are also able to adjust the reduction in interest rates that we feel are quite expensive for FLPP financing," Nixon said at the Hearing Meeting (RDP) with Commission VI at the Parliament Complex, Senayan, Jakarta, quoted Friday, August 22.

With the current scheme, namely the FLPP interest rate of 0.50 percent plus a SMF loan of 4.45 percent, the NIM KPR subsidy of BTN is only at the level of 3.51 percent.

Based on the presentation shown, Nixon assessed that if the SMF loan interest could be reduced by only 25 basis points, the NIM KPR subsidy BTN could potentially increase by around 7 basis points.

"With a 25 bps reduction in FLPP loan interest rates, it has the potential to increase the NIM KPR Subsidy by 7 bps," he said in the data presented.

He also hopes that the government will review the FLPP funding scheme. "The challenge is that the SMF loan interest rate is too high, so NIM is still below the industry average," said Nixon.

Previously, the Government officially raised the FLPP quota target to 350,000 units this year.

This is stated in the Decree of the Minister of Finance (KMK) Number 235 of 2025 concerning Amendments to the Decree of the Minister of Finance Number 49 of 2025 concerning Determination of Details of Budget Financing in the Sub-Division of the Government Investment State Budget (999.03) for Fiscal Year 2025.

In the regulation, it is written that the FLPP quota target in 2025 was originally set at 220,000 units, now increasing by 130,000 units to 350,000 housing units.

"As a form of government support for the housing sector for the needs of providing housing for low-income people, it is necessary to add a target for the FLPP program by 2025 of 130,000 housing units, from 220,000 housing units to 350,000 housing units," the regulation reads as quoted on Friday, July 25.

The addition of the FLPP quota was also accompanied by adjustments to the investment financing allocation in the 2025 State Revenue and Expenditure Budget (APBN).

Based on the KMK attachment 235 of 2025, the government allocated IDR 35.2 trillion for the FLPP program.