Funding for Subsidized Houses Remains Safe in the Face of Uncertainty

President Director of SMF Ananta Wiyogo (center) with SMF Finance and Risk Management Director Bonai Subiakto and SMF Business Director Heliantopo at a press conference on the performance of PT Sarana Multigriya Finansial (Persero) or SMF in Surakarta. (Photo: ANTARA)

JAKARTA - PT Sarana Multigriya Finansial (Persero) through SMF Research Institute conveyed the funding of people's housing programs, including subsidized houses through the Housing Financing Liquidity Facility (FLPP) scheme, remained maintained and sustainable even in the midst of high economic uncertainty.

SMF President Director Ananta Wiyogo said that his party continues to optimize the blended financing strategy through the issuance of debt letters and Asset-backed Securities (EBA-SP) and expanding the domestic investor base, in order to maintain the sustainability of FLPP funding.

"This approach is carried out by always prioritizing the principle of caution, strong risk management, and good governance," said Ananta in a statement in Jakarta, Friday.

As a special mission vehicle (SMV) of the Ministry of Finance, SMF has a strategic mandate to provide long-term funding for banks that distribute home ownership loans (KPR) and support the Government's FLPP program.

Since 2018, SMF has consistently provided a funding portion of 25 percent in the FLPP mortgage scheme.

This support ensures that low-income people still have access to affordable and affordable home financing, even though the financial market conditions have been adjusted.

SMF considers that Indonesia's economic growth in 2025 is an opportunity to further strengthen its role in developing the housing sector through the secondary financing market mechanism.

This role is becoming increasingly strategic in ensuring the continuity of long-term funding for the national mortgage industry.

From the macroeconomic side, throughout 2025, Indonesia recorded solid economic growth and remained at the level of 5 percent.

In the fourth quarter of 2025, the economy grew by 5.39 percent (year on year/yoy) or higher than the previous quarter which grew by 5.04 percent (yoy).

Overall, economic growth in 2025 reached 5.11 percent (yoy), increasing from the achievement of 2024 of 5.03 percent (yoy).

This growth is supported by positive growth in household consumption and investment. This condition is considered an important foundation for the property sector and housing financing to enter 2026.

The stable macroeconomic conditions are also reflected in the performance of KPR which shows an increasing trend in the last three months of 2025.

Mortgage growth was recorded at 6.9 percent (yoy) in October 2025 and increased to 7.05 percent (yoy) in December 2025.

This trend shows an improvement in the demand for housing financing and optimism that remains maintained in the property sector.

Going forward, SMF stated that it would continue to monitor global and domestic economic developments to ensure that housing financing support remains adaptive and in line with the government's agenda in accelerating the fulfillment of people's housing needs and reducing the national housing backlog.

SMF also believes that macroeconomic stability and strengthening the housing financing ecosystem will be the key to maintaining the momentum of the people's housing program, so that more affordable and affordable homes can be accessed by the Indonesian people.