Collaboration with Banks: A Strategic Government Step to Facilitate Subsidized Housing
By: Citra Kurnia Khudori
Collaboration between the government and banks is a strategic step to ensure that low-income communities have easier access to subsidized housing. This collaboration not only expedites the financing process but also simplifies the requirements for obtaining a decent home.
With the involvement of banks, the subsidized Home Ownership Credit (KPR) scheme becomes more transparent, secure, and affordable. The government can also expand the reach of the public housing program without fully burdening the state budget.
Minister of Housing and Settlement Areas (PKP), Maruarar Siraita tau Ara, encouraged banks to compete fairly in providing fast and easy access to home ownership for the public. He stated that with the People’s Business Credit (KUR) for housing, the state is not inferior to loan sharks.
He empowered banks, especially state-owned banks (Himbara), to compete fairly in serving the public. This way, the public will feel they are benefiting and have sufficient banking options to facilitate fast home ownership.
Minister Ara also commended the performance of PT Bank Tabungan Negara (Persero) Tbk (BTN) as the largest distributor of subsidized mortgages (KPR) through the Housing Financing Liquidity Facility (FLPP), far surpassing that of other state-owned banks. He expressed his hope that BTN would continue to support the 3 Million Homes Program by providing financing for the construction and renovation of public homes.
Data on FLPP subsidized mortgage distribution as of September 26, 2025, shows that BTN leads the way with 93,098 units disbursed, followed by its sharia-compliant business unit, BTN Syariah, with 36,589 units.
In total, BTN and BTN Syariah have disbursed 129,687 units, equivalent to 37 percent of this year’s FLPP subsidized mortgage quota, which has been set at 350,000 units nationwide.
With a market share of over a third of the national quota for FLPP subsidized mortgages, BTN has proven to be a leading player, consistently supporting the fulfillment of the public’s need for livable and affordable housing, especially for low-income households (MBR).
BTN also expressed optimism that the government’s allocation of 220,000 houses through FLPP mortgages, out of a total of 350,000 units nationwide, by 2025, can be achieved.
Furthermore, the government has implemented various policies to facilitate the public’s access to subsidized housing. For example, the exemption of Land and Building Acquisition Tax (BPHTB) to 0% for low-income households (MBR) and the maximum income regulation for low-income households (MBR) receiving the FLPP program.
In addition to these policies, Minister Ara also proposed amending the BI checking process for those wishing to participate in the subsidized housing program. He continues to frequently receive complaints regarding obstacles to accessing subsidized housing due to BI checking.
According to him, many low-income residents who are eligible for subsidized housing are hindered by their credit history in the BI system. Minister Ara expressed concern and believes a BI checking amnesty policy is necessary to ensure that those truly in need can participate in the program.
In addition to Bank BTN, a strong commitment to supporting the Subsidized Housing Program also comes from PT Bank Negara Indonesia (Persero) Tbk (BNI), which has distributed more than 109,000 subsidized mortgage units. The value of these subsidized mortgages is expected to reach IDR 17 trillion by September 2025.
BNI Corporate Secretary Okki Rushartomo stated that this achievement demonstrates BNI’s commitment to supporting the government’s program to build 3 million homes for low-income communities (MBR). Through BNI’s subsidized mortgage product, the public can enjoy various conveniences, such as a fixed interest rate of 5%, a loan term of up to 20 years, and a simple application process across BNI’s branch network throughout Indonesia.
According to Okki, in 2025, BNI will receive an additional quota for subsidized mortgage distribution through the government’s Housing Financing Liquidity Facility (FLPP) scheme. The quota increased significantly from 10,750 units to 25,000 units, demonstrating the government’s strong confidence in BNI’s performance and consistency in supporting the national housing program.
BTN and BNI’s commitment is also shared by regional banks, including Bank Sumut. Bank Sumut’s Director of Business and Sharia, Syafrizalsya, explained that to support the acceleration of the national subsidized housing program in North Sumatra, the North Sumatra regionally-owned enterprise (BUMD) is targeting completion of the mortgage application process in just three days.
