Deputy Minister Of Finance Suahasil Explains The Myriad Benefits Of Housing Asset Securitization

Illustration (Photo: Doc. Antara)

JAKARTA - Deputy Minister of Finance (Wamenkeu) Suahasil Nazara revealed that the government supports efforts to securitize housing assets as an initiative to find sources of financing for the development of this sector.

"We will continue to push for securitization in the housing market," he said in the G20 discussion forum entitled International Securitization Summit 2022 on Thursday, July 7.

According to Suahasil, securitization is one solution that can reduce the maturity mismatch that often occurs in long-term financing, such as in the housing sector.

"Securitization also creates value by reducing intermediary costs and increasing risk and risk diversification," he said.

The representative from Sri Mulyani also explained that securitization creates new liquidity for banks and financial institutions through changing illiquid assets, such as houses into securities.

"The government is committed to supporting the development of a better market, of course business actors must collaborate and provide input to regulators," he said.

Citing data from PT Sarana Multigriya Finansial (the Ministry of Finance's special mission vehicle in the housing sector), it is known that the issuance of asset-backed securities (EBA) products since 2009 has reached Rp. 12.7 trillion. This figure represents fresh funds obtained from the capital market in 14 issuances.