Bank Indonesia Opens Repo Facility for SMF Debt Securities, Transactions Reach Rp1.25 Trillion

Bank Indonesia (BI) continues to encourage financing within the property and housing sectors. One of the steps taken is the launch of an expanded underlying repo scheme for securities or debt instruments issued by PT Sarana Multigriya Finansial (Persero), also known as SMF.

The Governor of Bank Indonesia, Destry Damayanti, revealed that this policy, released in collaboration with the Ministry of Finance, has proven effective in boosting liquidity in the housing finance market.

“We have implemented a new policy, which is the expansion of bank repo underlying to Bank Indonesia for securities or debt instruments from PT SMF and SMI. For SMF, we released this on 26 September 2025, and the amount repoed by banks has already reached Rp1.25 trillion,” Destry stated during a press conference alongside the Minister of Housing and Residential Areas (PKP), Maruarar Sirait, at the BI Building on Friday (2/10/2026).

This repo facility provides flexibility for banks holding SMF debt securities to pledge these assets to BI to obtain fresh liquidity quickly. Consequently, transaction activity for SMF securities in the secondary market has surged drastically.

Destry noted that the average daily transaction value of SMF debt securities has experienced a rapid increase, nearly sixfold compared to normal conditions.

“Transactions from SMF have also increased sixfold, from a daily average of Rp31 billion to Rp180 billion. This means that, in addition to deepening the financial market, this is also intended to finance funding in the housing sector,” Destry explained.

As a quasi-government secondary housing finance institution, SMF’s funding portion is crucial in supporting long-term liquidity for banks providing mortgage (KPR) services.