Growing Fantastic In 2023, Danamon Reveals Strategy To Boost Sharia Mortgages

Danamon (Photo: Antara)

JAKARTA - The Sharia Business Unit of PT Bank Danamon Tbk, Danamon Syariah recorded a fantastic growth in Sharia Ruhah Ownership Loans (KPR) in 2023 of 93 percent.

Director of Sharia and Sustainable Finance Danamon, Herry Hykmanto said that for 2024 his party is targeting the growth in the distribution of kedit of IDR 1 trillion.

"The last 3 years (KPR business) has grown aggressively. Last year it grew 93 percent mortgage. This year the target is more," said Herry when met by the media in Jakarta, quoted Friday, March 22.

Herry said, within 3 years, aggressive growth was not only recorded at convebsional mortgages but also at Sharia mortgages.

Herry added that the conventional mortgage business had actually started 3 years ago or in 2021, while the sharia mortgage had only started in 2023 but the growth of sharia mortgages was able to compete with conventional mortgages.

"What needs to be noted is that it is not only in conventional mortgages but also sharia, Conventional 3 years ago only started, while sharia last year but at the end of the year can be distributed up to Rp1 trillion," continued Herry.

Herry said that to absorb significant growth, his party had also prepared a number of strategies, one of which was to prepare qualified staff.

Moreover, he continued, most of Bank Danamon's customers then chose to use Sharia mortgages so that staff who had expertise in the field of mortgages became a necessity.

"The request (Syariah KPR) grew rapidly and we at Bank Danamon while preparing staff," explained Herry.

For information, Danamon Syariah has an iB Home Ownership Financing (PPR) product. PPR iB uses a joint capital contract system or musyarakah mutantaqisah (MMQ) which is in accordance with sharia principles.

Musyarakah Mutanaqisah (MMQ) is a form of cooperation between 2 parties for the ownership of assets (goods) where this collaboration will reduce the ownership rights of one party caused by the purchase or gradual commercial transfer, while the other party has increased ownership rights.