BTN awaits BP Tapera regulations to implement 40-year FLPP mortgage tenures
Jakarta (ANTARA) - PT Bank Tabungan Negara (Persero) Tbk (BTN) is awaiting implementing regulations from the Public Housing Savings Management Agency (BP Tapera) to execute the Housing Finance Liquidity Facility (FLPP) mortgage scheme with tenures of up to 40 years.
“Usually, there is a Ministry of Housing Regulation. However, since the implementation is handled by BP Tapera, there are typically implementing regulations. What we are waiting for today is the implementing regulation from BP Tapera,” said BTN President Director Nixon LP Napitupulu in Jakarta on Friday.
He believes that the implementation of longer FLPP mortgage tenures will increase the public’s ability to pay instalments, as monthly payments will become lower. According to him, this will ultimately enhance public purchasing power.
“It is straightforward in the sense that instalments will decrease. Consequently, public purchasing power will rise. This is actually one way to encourage purchasing power, making it lighter for the community to make repayments,” said Nixon.
From the company’s perspective, he assessed that applying tenures of up to 40 years for FLPP mortgages should not increase the risk of bad debts. This is because a longer tenure will result in lower instalment amounts.
Regarding the eligibility criteria, the programme is intended for individuals purchasing their first home. This means that prospective recipients who already own a house in their own name cannot participate in the programme.
“This (40-year tenure) is for the FLPP programme. For commercial houses, we already have tenures of 25 to 30 years,” said Nixon.
Based on company data up to the end of June 2024, BTN, along with its subsidiary PT Bank Syariah Nasional (BSN), disbursed credit through the FLPP scheme for 67,518 housing units. This figure consists of FLPP credit distribution to 44,388 low-income individuals (MBR) by BTN and 23,130 MBR by BSN.
Previously, BP Tapera accelerated the FLPP idea with plans to extend financing tenures to 40 years. BP Tapera Commissioner Heru Pudyo Nugroho stated that they are pushing for a single scheme so that the policy can be implemented immediately.
“Currently, we are offering a single scheme only. We are extending the tenure up to 40 years, for both landed houses and flats,” he said.
Meanwhile, according to the Minister of Housing and Residential Areas (PKP), Maruarar Sirait, the mortgage scheme with tenures of up to 40 years aims to make it easier for the public to own homes through lighter instalments. This policy follows the directive of President Prabowo Subianto, which aims to expand public access to subsidised housing.