The 35-Year-Old KPR Scheme From BTN Will Offer Ease For Millennials And Gen Z

President Director of PT Bank Tabungan Negara (Persero) Tbk (BTN) Nixon LP Napitupulu. (Photo: Doc. BTN)

JAKARTA - The Government's plan through the Ministry of Public Works and Public Housing (PUPR) to work on a Home Ownership Credit (KPR) scheme with a period of up to 35 years is considered to be an easy answer for millennials and gen Z to have housing.

President Director of PT Bank Tabungan Negara (Persero) Tbk (BTN) Nixon LP Napitupulu supports the Government's plan to distribute the scheme. According to him, the scheme will make it easier and at the same time reduce the installments of people who want to own a house.

"Especially for Millennials and Gen-Z, this scheme will be the answer to owning your own home as well as future investments," said Nixon in Jakarta, Monday, January 8.

BTN Bank Chief Economist Winang Budoyo also positively welcomed the draft KPR Flat 35 scheme for the year. Winang assessed that the program would boost the demand side because customers would have lower installments.

In terms of financing, Winang said that this program also needs to be supported by a scheme that supports the bank's ability to distribute financing.

We see that the option of tiered interest rates will benefit customers and banks. Because historically, customers' abilities tend to increase over time," said Winang.

Winang detailed that the tiered interest rate scheme means that after passing a certain period, interest rates can be increased gradually. Winang proposed a gradual increase to be carried out within 10 years.

"Historically, we see that within 10 years, the economic condition of mortgage customers has increased compared to when they first took mortgages," said Winang.

Meanwhile, the proposed 35-year-old KPR scheme is still being studied by the Directorate General of Public Works and Housing Infrastructure Financing (DJPI) of the Ministry of PUPR. The scheme was adopted from the successful KPR scheme in Japan with its housing system.

The plan for the 35-year-old KPR scheme is also a step for the Government to gradually go to zero backlog in 2045. Until 2021, the number of backlogs in Indonesia will still reach 12.71 million units.