Indonesia, BSI Expand Housing Finance Collaboration

The Indonesian government, through the Ministry of Public Works and Housing, is actively fostering collaborations with the banking sector to broaden housing finance accessibility for its citizens. A key focus of this initiative is the utilization of Islamic financing schemes, which are seen as having significant potential to bolster the national housing program and contribute to the development of a new middle class.

Minister of Public Works and Housing, Maruarar Sirait, met with the President Director of Bank Syariah Indonesia (BSI), Anggoro Eko Cahyo, to strengthen their partnership in supporting government housing financing. Sirait expressed gratitude for BSI's contributions, particularly in the housing sector, emphasizing the importance of such collaborations in enabling more people to access decent and affordable homes. The Credit Program for Housing (KPP) has shown promising results in various regions, with a notable achievement in Mataram, West Nusa Tenggara, where BSI's socialization efforts led to Rp315.7 billion in realizations.

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We express our gratitude for the support and contribution of BSI to government programs, including in housing. This kind of collaboration is important so that more people can access decent and affordable housing.

This program is instrumental in the government's broader strategy to increase homeownership and stimulate middle-class growth. Nationally, KPP has reached approximately Rp16.2 trillion, with BSI's disbursement reaching about 67% of its Rp1.2 trillion target, or around Rp800 billion. The majority of these loans are driven by public demand, indicating a strong desire for homeownership among Indonesians.

BSI, under Anggoro Eko Cahyo's leadership, has reiterated its commitment to supporting government housing programs through Sharia-compliant financing. The bank aims to disburse Rp1.2 trillion for the KPP in 2026 and also supports the Housing Financing Liquidity Facility (FLPP), targeting 5,540 subsidized housing units, with 1,250 units already contracted. This collaboration underscores Indonesia's commitment to leveraging its Islamic finance sector to address national development goals, ensuring that more citizens can achieve the dream of homeownership.

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We are grateful to be able to discuss government programs directly. BSI is committed to supporting government programs, including in the housing sector.