Supporting The Distribution Of House Subsidized Mortgages, SMF Published Bonds Of Rp. 2 Trillion

Illustration of subsidized house (Between)

JAKARTA - PT Sarana Multigriya Finansial (Persero) or SMF issued Shelf-Registered Bonds VI Phase IV Year 2023 with a principal amount of IDR 2 trillion as an effort to support the Credit Financing Program for Ownership of Housing Financing Liquidity Facilities (KPR FLPP).

"The funds obtained from these bonds will be used to support the government's fiscal burden reduction program through the Housing Liquidity Financing Program for Housing Financing Facilities (KPR FLPP) for low-income people (MBR)," said SMF President Director Ananta Wiyogo quoting Antara, Monday, February 27.

Ananta said that this bond had received an idAA rating from PT Pemeringkat Efek Indonesia (Pefindo), and its issuance was part of the VI Sustainable Public Offering with the realization of bond issuance of IDR 9 trillion.

He explained that these bonds consist of one series with a fixed interest rate of 6.85 percent per year, and a period of five years from the date of issuance, of which the full bond principal payment (bullet payment) will be made on the date of bond repayment.

He continued that the bonds were issued without stamps, except for the jumbo Bond Certificate issued by the company in the name of PT Kustodian Sentral Efek Indonesia (KSEI) as proof of debt for the benefit of bond holders and offered a value of 100 percent of the principal amount of bonds.

He explained that so far the government has made various efforts to support home ownership for all people through various schemes, one of which is subsidized credit, including FLPP mortgages.

According to him, SMF as the Ministry of Finance's Special Mission Vehicle (SMV) in this program plays an important role as fiscal tools in easing the government's fiscal burden by financing 25 percent of FLPP mortgage funding.

Thus, the government only provides 75 percent of the total FLPP funding from the original 90 percent.

In its implementation, the company synergizes with BP Tapera in providing FLPP mortgage funds which are then channeled to the public through channeling banks.

"This is a manifestation of the presence of the state to support home ownership for all Indonesian people, especially low-income people (MBR)," said Ananta.

On the same occasion, the Director General of Public Works and Housing Infrastructure Financing at the Ministry of Public Works and Public Housing (PUPR) Herry Trisaputra Zuna appreciated the SMF's efforts to issue these bonds as an effort to meet the support needs of FLPP's companion funds for the sustainability of housing availability for the community.

He hopes that PT SMF can increase the number of issuances, increase the frequency of issuance of similar bonds, and expand the use of bond funds in the future.

"Therefore, the government hopes that the bonds issued by SMF can get a more attractive rate so that it can streamline funds distributed to MBR," said Herry.

SMF has issued bonds of IDR 3 trillion through the issuance of Phase III PUB VI Bonds during 2022, in which the outstanding position of SMF bonds reached IDR 12.80 trillion and (UStanding) long-term funding from banks of IDR 3.2 trillion until the end of 2022.