By: Citra Kurnia Khudori)
The cooperation between the government and banking institutions has become a strategic move to ensure that low-income communities can more easily access subsidized housing. This collaboration not only accelerates the financing process but also simplifies the requirements needed to obtain decent and affordable homes.
With the involvement of banks, the Subsidized Mortgage (KPR) scheme has become more transparent, secure, and accessible. The government can also expand the reach of public housing programs without being fully burdened by the state budget.
Minister of Housing and Settlement Areas (PKP) Maruarar Sirait, also known as Ara, encouraged healthy competition among banks in providing faster and easier access to homeownership for the people. He stated that with the People’s Business Credit (KUR) for housing, the nation is no longer at the mercy of loan sharks.
He also gave freedom to banks—especially state-owned banks (Himbara)—to compete healthily in serving the public. This allows citizens to benefit from fair competition and gives them a range of banking options to help them acquire homes more quickly and conveniently.
Minister Ara also praised the performance of PT Bank Tabungan Negara (Persero) Tbk (BTN) as the largest distributor of subsidized mortgage loans through the Housing Financing Liquidity Facility (FLPP) program, outperforming other state-owned banks. He expressed hope that BTN would continue to support the Three Million Homes Program by providing financing for the construction and renovation of people’s houses.
As of September 26, 2025, data on the distribution of FLPP-subsidized mortgages shows BTN leading with 93,098 units, followed by its sharia division, BTN Syariah, which distributed 36,589 units.
Combined, BTN and BTN Syariah have financed 129,687 housing units, equivalent to 37% of the total 350,000-unit national quota for FLPP-subsidized mortgages this year.
With a market share exceeding one-third of the national quota, BTN has proven to be a dominant and consistent player in supporting the provision of decent, affordable housing—especially for low-income households (MBR).
BTN also expressed optimism that it would achieve the government’s allocation of 220,000 homes under the 2025 FLPP program, from the total national target of 350,000 units.
Furthermore, the government has introduced various policies to make it easier for people to obtain subsidized housing—for instance, waiving the Land and Building Rights Acquisition Fee (BPHTB) to 0% for MBR recipients, and setting a maximum income limit for FLPP eligibility.
In addition, Minister Ara has proposed a “BI Checking Amnesty” for citizens who wish to participate in the subsidized housing program. He noted that many low-income individuals are prevented from accessing housing loans due to unfavorable credit histories recorded in the Bank Indonesia system. He expressed concern over this and urged for an amnesty policy to ensure that those truly in need can participate in the program.
Beyond BTN, strong commitment to the subsidized housing program also comes from PT Bank Negara Indonesia (Persero) Tbk (BNI), which has distributed more than 109,000 subsidized mortgage units, worth approximately Rp17 trillion as of September 2025.
BNI’s Corporate Secretary, Okki Rushartomo, stated that this achievement reflects BNI’s dedication to supporting the government’s Three Million Homes Program for low-income communities. Through its BNI Subsidized Mortgage Product, customers enjoy several benefits such as a fixed 5% interest rate, a loan term of up to 20 years, and a simple application process available at all BNI branches nationwide.
According to Okki, in 2025 BNI received an increased FLPP allocation from the government—rising significantly from 10,750 units to 25,000 units—demonstrating the government’s strong trust in BNI’s performance and consistency in supporting the national housing initiative.
A similar determination is shared by regional banks such as Bank Sumut. The bank’s Director of Business and Sharia, Syafrizal, explained that to support the acceleration of the national subsidized housing program in North Sumatra, the regional development bank aims to complete mortgage applications within just three days.
With 233 operational units, Bank Sumut began implementing the system on October 15, 2025. All service infrastructure and human resources have been prepared to ensure a fast and efficient mortgage process.
The success of the subsidized housing program is determined not only by government policy but also by strong synergy with the banking sector, particularly state-owned banks like BTN and regional banks that are closer to local communities. This collaboration ensures wider access to financing, more efficient processes, and makes the dream of owning a decent home a reality for millions of Indonesian families.
*) Social and Economic Policy Observer