BTN Optimistic To Distribute 220 Subsidized Mortgage Units By The End Of 2025

President Director of BTN Nixon LP Napitupulu. (Photo: Doc. Antara)

JAKARTA - PT Bank Tabungan Negara (Persero) Tbk (BTN) expressed optimism that the distribution of funds for the Housing Financing Liquidity Facility (FLPP) program could reach 220 thousand subsidized People's Housing Credit (KPR) units by the end of this year.

To date, BTN has distributed 142,749 subsidized KPR units until September 30, 2025, or the equivalent of 64.89 percent of the BTN FLPP quota absorption target.

BTN has a mandate from the government with a noble goal of channeling habitable houses for millions of families. With the subsidized mortgage program from the government, many low-income families are helped to have a dream home and a better future," said BTN President Director Nixon LP Napitupulu in his statement in Jakarta, quoted by Antara, Friday, October 10.

The nominal distribution reached Rp17.66 trillion from the total nominal quota for BTN of Rp26.40 trillion. Based on the total distribution, as many as 99,441 units were distributed by BTN and the remaining 43,308 were distributed by sharia business units.

"The number of 140 thousand units that have been distributed to FLPP mortgages means that 140 thousand families have been helped thanks to the hard work of BTN," he said.

Nixon said that the impact felt by the beneficiaries of the Subsidized KPR after owning an livable house was very positive for their lives.

Quoting the study of the BTN Housing Finance Center, ownership of livable houses improves the quality of life for the community to be better.

BTN studies show that KPR Subsidi beneficiaries are satisfied and proud to have a home as an achievement of life. They end up having long-term assets and are better at managing their family finances," said Nixon.

The majority or around 88.43 percent of subsidized mortgage recipients from BTN are the millennial generation or the age range between 29 years and 44 years.

"With this, it means that the testimonials of satisfaction in owning a home as a long-term asset reflect the majority of Indonesia's young generation who need government subsidy support to improve their quality of life," he said.

On the other hand, his party also provides input to the government to pay full attention to the aspect of subsidized housing feasibility so that people can truly live a decent life.

For example, Nixon revealed that BTN was the first party to reject the discourse of reducing the size of subsidized houses to only 18 square meters.

BTN is the first to reject the idea, because we have to see the reality on the ground that the average Indonesian family needs at least two bedrooms. The size of the 18 square meter house will be a new problem for residents and the surrounding environment. Don't create new slum areas," he said.

Therefore, BTN is committed to continuing to serve Low-Income Communities (MBR), including those from informal sector workers and non-permanent income workers, such as small traders, barbershops, motorcycle taxis, and others.

Although currently more than 77 percent of subsidized mortgage debtors in BTN are private employees, the proportion of informal sector workers who can enjoy home ownership is also said to continue to grow in BTN.

BTN has also collaborated with one of the ride-hailing application companies to provide mortgages to driver-partners with installment payment innovations in the form of daily income cuts so that they can easily pay installments.

"It can be said that BTN is the only bank to date that has been able to reach MBR, including massive informal workers like what we have been doing over the last 10 years through the Subsidized KPR program," said Nixon.