BTN Boosts Savings-Based Mortgage Distribution

Illustration. (Photo: Doc. Antara)

JAKARTA - PT Bank Tabungan Negara (Persero) Tbk (BTN) continues to boost the distribution of housing loan (KPR) Savings-Based Housing Financing Assistance (BP2BT) to meet the target of 11,000 units by the end of 2021.

Director of Consumer and Commercial Lending Bank BTN Hirwandi Gafar said, one of the company's strategies is to hold mass BP2BT mortgage contracts that are carried out simultaneously throughout Indonesia.

The BP2BT KPR Mass Credit contract is part of the 45th KPR Anniversary series which falls on December 10. As for this weekend, Bank BTN simultaneously succeeded in conducting mass credit contracts for BP2BT KPR as many as 2,150 units.

"While what we have realized previously until yesterday was more than 4,000 units, so with today's contract Bank BTN has reached almost 7,000 units. We will do mass contracts until the end of November, so we hope that the 11,000 target will be achieved by the end of 2021, " said Hirwandi in his written statement, quoted from Antara, Monday, November 22.

Hirwandi said that the mass credit agreement was also a form of Bank BTN's seriousness in helping the government boost the One Million Houses Development program and reduce the housing backlog with the BP2BT KPR scheme. For this reason, the company encourages developers to accelerate the contract or realization of BP2BT mortgages.

"After the year FLPP KPR quota runs out, Bank BTN also seriously helps the government to encourage financing through the BP2BT KPR scheme so that low-income people (MBR) can still own houses in addition to the businesses of housing development actors which have an impact on the 174 associated industries running," he said. Hirwandi.

Hirwandi hopes that in the future there will be no more distinction made by developers on KPR FLPP and KPR BP2BT. The reason is that both are subsidized mortgages that are very useful and make it easier for MBR to own a house.

"Moreover, now there is a bailout from Bank BTN for down payments for BP2BT mortgages, so developers don't have to worry about cash flow being disrupted," said Hirwandi.

According to Hirwandi, with the bailout from Bank BTN, the disbursement of the down payment subsidy of up to Rp40 million can be done up front, so developers don't have to wait for the government's disbursement, which may take time.

Then from the consumer or debtor community side, Bank BTN provides easy installments equal to FLPP installments and provides a choice of fixed interest rates for five years and 10 years.

"The two installments are much lower than the FLPP, so from a consumer point of view, there are two benefits, namely consumers buying a house worth Rp. 150 million, but they buy it for only Rp. 110 million because Rp. " said Hirwandi.

On the same occasion, the Director General of Public Works and Housing Infrastructure Financing Herry Trisaputra Zuna acknowledged that he appreciated Bank BTN's hard work in distributing BP2BT mortgages.

"We would like to thank Bank BTN for working hard today in distributing BP2BT mortgage products, which if you look at its history at the beginning, the distribution was a bit slow, although we believe this change is very good," said Herry.

Herry said that BP2BT KPR is very good, because it invites people to get used to saving, especially from the bank's side, the product does not distort the market. Another advantage is that Bank BTN can channel its credit at market interest, while the government's inability to cover MBR with cash of up to Rp40 million, so that the rest must be repaid.