Proposal For Subsidized Mortgage Tenor To Be Shortened, BTN: An Average Of 10 Years Has Been Paid Off

Subsidized Mortgage Division Head of PT BTN (Persero), Budi Permana (center). (Photo: Mery Handayani/VOI)

JAKARTA - PT Bank Tabungan Negara (Persero) Tbk or BTN has opened its voice regarding the proposed subsidized housing ownership credit tenor (KPR) which was proposed to be shortened from 20 years to 10 years.

Subsidized mortgages are given to low-income people (MBR).

BTN's Subsidy Mortgage Division Head, Budi Permana said the proposal was possible to implement it.

Because, he continued, if you look at the history of using subsidized mortgages so far, the average repatriation of mortgages is 10 years.

"We have data that conveys that the span of 20 years is indeed quite long for subsidies. Because of the fact that an average of 10 years has been paid off by the KPR," he said in a discussion on Strengthening SOEs Towards Indonesia Emas in Sarinah, Jakarta, Thursday, October 10.

Furthermore, Budi revealed, if you look historically, the MBRs who received subsidized mortgages have advanced to class in 10 years.

Therefore, he said, they are no longer considered as MBR.

"We also have the fact that in 10 years we are no longer MBR. So in fact, he also no longer needs to be given subsidies," he said.

Budi said that after 10 years of mortgage installments, subsidies no longer needed to be helped. So, subsidies can be given to other people who need it more.

However, continued Budi, cutting the subsidized KPR tenor is the authority of the upcoming new government, namely the elected president Prabowo Subianto-Gibran Rakabuming Raka.

"Indeed, it is still very much needed, but will it be used? We will wait for the new ministry or the new government," said Budi.