Minister Ara Calls KPR A Promising Business Subsidy

Illustration: Photo: Doc. ANTARA

JAKARTA - Minister of Housing and Settlement Areas (PKP), Maruarar Sirait said that subsidized housing financing is a promising business, especially if managed by institutions such as PT Bank Rakyat Indonesia (Persero) Tbk or BRI.

He conveyed this in the signing of the Memorandum of Understanding for the Addition of FLPP Quota in Jakarta, Tuesday, August 5.

He assessed that BRI has proven its capacity as a strategic partner of the government in channeling subsidized housing financing widely and responsibly.

"This means that BRI NPL is very low for subsidized houses. Sir, this business is clear, sir. The constituents are small communities, you have been running, including the high distribution level until now. The NPL is only 1.1 percent, the business is very clear," he said.

With proven performance, Maruarar also encouraged BRI to increase the distribution of FLPP quota by 35,000 units.

"Earlier, you said 25,000 (the additional quota for FLPP distribution), I'm sure you will exceed 25,000, if I may ask for a little more, add 10,000 more, so 35,000. If at BRI it's small," he continued.

In addition, he encouraged this state-owned bank to form a special division of strong housing so that distribution can be carried out more structured and have a broad impact on other supporting sectors.

"If I may propose, create a very strong housing division at BRI. Why? BRI has 183 ecosystems. Later it can enter the sand, enter the cement, the glass, the contractor. And how the consultants, everyone, the transportation, the building shop. This will be very good," said Maruarar.

Maruarar reminded, based on his experience for 15 years at Commission XI of the Indonesian House of Representatives in charge of banking and finance, the housing sector should be one of BRI's main business lines.

"For 15 years, I have been in Commission XI (handling) banking, finance in the DPR. I know this should be one of the main businesses in BRI. Because this is the ecosystem, I think it is here. KUR is all in BRI, micro is in BRI. Subsidized houses should also be in BRI. And I am sure that in the hands of the President Director, the subsidized housing business in BRI will be bigger and healthier," he said.

BRI Hands Over 1,000 Subsidized House Keys

On that occasion, BRI President Director Hery Gunardi said, until now, the distribution of subsidized housing financing liquidity facilities or FLPP reached 105.88 percent, of the target set at 17,700 units.

"BRI has distributed an FLPP quota of 105.88 percent of the distribution target that has been given to us in the amount of 17,700 units," he said.

BRI again obtained an additional quota for subsidized housing financing through the FLPP scheme to 25,000 units by 2025. This addition is part of BRI's commitment to support the national program of 3 million houses carried by the government.

As a step to accelerate distribution, BRI cooperates with the Ministry of PKP, BP Tapera, and developer associations to initiate simultaneous mass contracts. A total of 1,000 customers participated in the contract which was held nationally through 75 BRI Branch Offices spread throughout Indonesia.