BTN disburses mortgages for 6 million homes to middle-income groups

PT Bank Tabungan Negara (BTN) has successfully disbursed mortgages for 6 million homes, primarily targeting middle-income groups categorized as desil 3, according to its President Director Nixon LP Napitupulu. This significant achievement underscores the bank's commitment to expanding homeownership across Indonesia.

Napitupulu explained that BTN's subsidized mortgage program is designed for low-to-middle income earners, specifically those in desil 3 and above. He noted that while desil 3 to 8 benefit from mortgage interventions, the most financially challenged groups, desil 1 and 2, often struggle to access housing credit. For these groups, the government offers the Bantuan Stimulan Perumahan Swadaya (BSPS) program, allocating significant funds to help them secure adequate housing.

In a move to further enhance housing accessibility, the government is actively exploring a mortgage scheme with a tenor of up to 40 years. This initiative, championed by Minister of Public Housing and Settlements Maruarar Sirait under President Prabowo Subianto's directive, aims to reduce monthly installments and make homeownership more attainable for a broader segment of the population. Napitupulu expressed hope that this extended tenor would eventually benefit desil 1 and 2 individuals as well.

Sirait confirmed that the 40-year mortgage plan is currently undergoing simulations and regulatory preparation before its official public announcement. He highlighted the potential financial relief this could provide, estimating that a 40-year term could lower monthly payments to around Rp 800,000-900,000, compared to approximately Rp 1.7 million for a 10-year term on subsidized housing. This policy is seen as a crucial step in increasing housing finance penetration for low-to-middle income earners.