BTN Proposes New Subsidy Scheme As A Breakthrough In Fulfilling National Home Needs

JAKARTA - Since the beginning, the State Savings Bank or BTN has been known as the distributor of mortgages and the largest subsidized housing financing in Indonesia. Until now, BTN still has a commitment to provide convenience for people to own a house.

In its development to meet housing needs for low-income people and reduce housing backlogs. BTN proposed a new subsidy scheme to the government as a breakthrough effort to realize the fulfillment of national housing needs.

The scheme is the Interest Rate/Margin Tieering Scheme and the Housing Financing Liquidity Facility (FLPP) of the Eternal Fund. In the first scheme, interest rates will be grouped based on the decile or increase the welfare of low-income people's income. Interest rates in this scheme will be accompanied by a shorter subsidy duration than the tenor period.

Whereas in the second scheme, the government requires a new development scheme for rapidly reducing housing backlogs. This scheme will reduce dependence on government budgets.

"Currently we are still discussing the details of the two schemes with stakeholders. As a bank that focuses on meeting national housing needs with mortgages and financing, BTN is optimistic about our capability to support government programs that will have an impact on the welfare of many people," said BTN President Director Nixon LP Napitupulu during an online Public Expose Live in Jakarta, Tuesday (27/8).

BTN managed to record credit growth of 14.4 percent year-on-year (yoy) to IDR 352.06 trillion until June 2024, supported by high-margin housing and credit loans (high yield loan). This achievement shows BTN's commitment to optimizing the intermediation function amid the challenges of high funding and global uncertainty. Watch the video below.