Bank BSN and SMF Explore Sharia Asset Securitisation to Boost Housing Finance
Efforts to strengthen long-term funding for the Sharia housing sector are being intensified by the financial industry. One such method involves exploring the securitisation of Sharia housing finance assets, which is expected to serve as a new source of liquidity while expanding the capacity to distribute home financing to the public.
The President Director of Bank BSN, Alex Sofjan Noor, stated that the exploration of Sharia housing finance asset securitisation alongside PT Sarana Multigriya Finansial (Persero), or SMF, will strengthen the capacity for Sharia-based housing finance and support long-term funding needs for the housing sector. “The housing sector remains a vital pillar in supporting national economic growth due to its multiplier effect on various other business sectors. This synergy will strengthen Bank BSN’s Sharia-based housing finance capacity,” said Alex during the signing of the Memorandum of Understanding in Jakarta on Wednesday.
According to Noor, securitisation is a solution to meet the funding requirements for housing finance, which typically involves long tenures. This scheme can assist financial institutions in maintaining a balance between financing growth, liquidity management, risk management, and the principle of prudence. Furthermore, this step aligns with efforts to support the government’s ‘3 Million Houses Programme’.
Through this collaboration, both parties will explore the issuance of Sharia Asset-Backed Securities in the form of Participation Certificates (EBAS-SP). This scheme allows high-quality Sharia housing finance portfolios to be used as underlying assets for Sharia capital market instruments offered to investors. This partnership is a continuation of a collaboration that has existed since 2008, which has evolved into various housing finance programmes, including the Housing Finance Liquidity Facility (FLPP).
As of May 2026, the cumulative realisation of housing finance cooperation under the Mudharabah Muqayyadah contract between the two parties reached 29,402 units with a value of Rp6.26 trillion. Of this amount, home purchase financing accounted for 27,023 units worth Rp5.39 trillion, while refinancing financing recorded 1,602 units worth Rp595 billion. This year, the cooperation was further strengthened through the distribution of commercial financing worth Rp1.65 trillion, realised in February and March 2026. Meanwhile, under the FLPP scheme with an SMF funding portion of 25%, the target for this year’s distribution is Rp3.13 trillion to support home ownership for approximately 73,700 low-income households (MBR).
The President Director of SMF, Ananta Wiyogo, stated that these achievements serve as a vital foundation for moving the cooperation to a more strategic stage through the development of Sharia securitisation. “We view the development of Sharia securitisation as playing a crucial role in driving the deepening of the national Sharia financial market. We see very good long-term potential in BSN’s assets and hope this securitisation transaction begins to materialise this year,” said Ananta.
He added that the presence of instruments based on Sharia housing finance assets can enrich investment options in the capital market and increase the credibility of the domestic financial market in the eyes of investors. Through the EBAS-SP mechanism, long-term housing finance cash flows can be transformed into new liquidity sources, allowing the capacity for Sharia housing finance distribution to be increased without compromising prudential principles.
To finalise the transaction process, the scope of cooperation also includes data and information exchange, human resource capacity building, strengthening securitisation literacy, and fulfilling legal, taxation, rating, and transaction structure aspects. From a regulatory perspective, the development of housing asset securitisation is supported by Presidential Regulation Number 100 of 2020 regarding Secondary Housing Finance, as well as various provisions from the Financial Services Authority (OJK). From a Sharia perspective, EBAS-SP transactions refer to DSN-MUI Fatwa Number 121/DSN-MUI/II/2018.