OJK: Issuance Of Housing SBN Is A Strategic Funding Step

Illustration. (Photo: Doc. Antara)

JAKARTA - The Financial Services Authority (OJK) views that the issuance of Government Securities (SBN) that will be carried out by the government in order to support the housing sector is a strategic step in order to obtain sustainable funding.

"The government's decision to issue SBN is a strategic step to get sustainable funding," said Inarno Djajadi, Chief Executive of the Capital, Finance, Derivative, and Carbon Exchange (KE PMDK) in Jakarta, quoted by Antara, Sunday, March 9.

Inarno said that OJK also appreciated the government's commitment to meeting public housing needs through the issuance of SBN.

"The capital market here certainly plays an important role as well as in financing long-term infrastructure projects, including housing development," he said.

OJK, said Inarno, is also optimistic that this initiative will make a positive contribution to economic growth thanks to the strong collaboration between the government, regulators, and financial institutions.

Previously, the Ministry of Finance (Kemenkeu) revealed the plan to issue housing SBN as part of efforts to support the 3 million house program per year launched by the Prabowo-Gibran government.

Finance Minister Sri Mulyani Indrawati on Thursday, February 20, in Jakarta said that the issuance of this housing SBN will be allocated specifically for housing financing for low-income people (MBR).

According to Sri Mulyani, this mechanism is a modification of the Housing Financing Liquidity Facility (FLPP) scheme which will be scaled up.

In addition to the issuance of SBN, from a fiscal point of view, there have also been various innovations in financial instruments for the housing sector, including through the FLPP, namely liquidity facilities whose sources of funds are from the APBN with low interest rates channeled by BP Tapera then through banks.

Then there was also the provision of State Equity Participation (PMN) to PT Sarana Multigriya Finansial (PT SMF), whose funds were blended to banks with the main aim of MBR.

As for the monetary side, Bank Indonesia (BI) encourages the macroprudential liquidity (KLM) policy by reducing the banking minimum mandatory demand (GWM), or increasing liquidity incentives from 4 percent to 5 percent third party funds (DPK).

"Among them, for liquidity incentives to housing programs from now on, Rp. 23.19 trillion will be increased gradually to Rp. 80 trillion," said BI Governor Perry Warjiyo.