BTN Proposes Village Mortgage Program, Cost Of IDR 480,000 With A Tenor Of 30 Years

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

JAKARTA - PT Bank Tabungan Negara (Persero) Tbk (BTN) plans to launch a village home program or Home Ownership Credit (KPR) Desa.

According to the plan, if this program is accepted, the installment will only be IDR 480,000 with a tenor of 30 years.

"So, it is very affordable for the people in the village," said BTN President Director Nixon LP Napitupulu when met by reporters after the agenda of the Dialogue with the Developer Association entitled 'Accelerated Distribution of Program 3 Million Houses' at the BTN Tower, Jakarta, Friday, November 29.

Nixon assessed that the Village KPR will focus on renovating or rebuilding uninhabitable houses in rural areas.

Especially, he said, for houses with toilet washing facilities or inadequate toilets.

According to him, costs can be affordable because financing does not include land acquisition. The reason is, renovated houses already stand on land owned by their residents. He added that it will be difficult for developers to reach because the number is too large.

"So that later we will use subcontractors, use residential associations. The ticket limit can be IDR 75 million, if it's 30 years, we have an estimated installment of only IDR 480,000," he said.

In addition, Nixon said that this Village Mortgage was one of the proposed programs to support the plan to increase the subsidized mortgage quota to 800,000 units.

"We have just submitted (the program). This is included in the program (plan to add FLPP) 800,000 units. So, later there will also be portions that can be built in the village," he added.