The Government Plans To Add FLPP To 800,000 Units Next Year, This Is The Budget Needed

President Director of BTN Nixon LP Napitupulu. Photo: Theresia Agatha/VOI

JAKARTA - PT Bank Tabungan Negara (BTN) (Persero) Tbk needs funds worth IDR 80 trillion to realize the target of the Home Ownership Credit (KPR) distribution program with a Housing Financing Liquidity Facility (FLPP) scheme planned for 800,000 units next year.

"Yes, this has not been decided, but the study is approximately Rp. 70 trillion to Rp. 72 trillion from the government side. So, banks usually have to prepare Rp. 80 trillion if the format is still FLPP," said BTN President Director Nixon Napitupulu after the agenda of Dialogue with the Development Association entitled 'Accelerated Distribution of Program 3 Million Houses' at the BTN Tower, Jakarta, Friday, November 29.

For information, the Ministry of Housing and Settlement Areas (PKP) will increase the quota for the distribution of Home Ownership Loans (KPR) with the Housing Financing Liquidity Facility (FLPP) scheme to 800,000 units by 2025.

PKP Minister Maruarar Sirait or Ara said that FLPP mortgages are very important and needed by people who want to own subsidized houses with affordable installments.

Nixon also welcomed Minister Ara's plan to increase the FLPP quota and hoped that the target could become an official decision.

So far, Nixon said, technical discussions over the plan are still ongoing, including funding models.

The plan is for 50 percent of the funding to come from the government and 50 percent of the bank's liquidity.

This scheme becomes a reference for BTN in determining the estimated funds needed by banks to accommodate the target needs of 800,000 FLPP mortgage housing units.

Regarding bank liquidity itself, Nixon said, he would rely on third party funds (DPK), bond issuance and exploring foreign loans.

Liquidity obtained from bonds and loans is targeted to reach IDR 10 trillion to IDR 15 trillion next year.

"The challenge for banks is to prepare liquidity. We are also talking to the government so that liquidity-related matters can be assisted. We also propose that if it can be issued, the government can guarantee bonds to make it cheaper for us," said Nixon.

On the other hand, Nixon hopes that PT Sarana Multigriya Finansial (Persero) or SMF will also remain involved in the plan to implement the KPR FLPP as many as 800,000 units.

Thus, he said, his party could share various amounts of funding together with SMF.