BTN prepares 40-year fixed-rate mortgages at Manggarai TOD
PT Bank Tabungan Negara (Persero) Tbk (BTN) is preparing subsidised mortgages with tenors of up to 40 years and a 6 per cent interest rate until fully repaid to expand public access to affordable vertical housing at the Manggarai Transit Oriented Development (TOD) in Jakarta.
BTN President Director Nixon LP Napitupulu said after the groundbreaking of the Manggarai Affordable Housing project in Jakarta on Friday that the long-term financing scheme is designed to open wider access for the public to housing in the city centre, with more affordable instalments and long-term interest rate certainty.
“Indeed, our mandate is to manage people’s housing. For this mortgage scheme, we are trying 40 years with 6 per cent interest until fully repaid. So the interest rate will not change,” he said.
Nixon said the appeal of Manggarai Housing lies in its combination of affordability and its location in the city centre, close to the public transport network. BTN will keep housing prices in the project below Rp600 million.
He said the bank will apply prudential principles in lending by aligning the purchase process with the progress of project development to ensure consumer protection. Meanwhile, discussions regarding construction financing for KAI Properti are still ongoing.
According to Nixon, Manggarai Housing is a pilot project for developing affordable vertical housing in the centre of Jakarta. The model has the potential to be replicated in areas around stations and other public transport hubs, as land for landed houses in major cities becomes increasingly scarce and expensive.
He said vertical housing integrated with public transport is also increasingly relevant to the needs of urban communities, including the younger generation who prioritise ease of mobility and proximity to centres of activity.
To further expand public access to Manggarai Housing, BTN is preparing two financing schemes: the Housing Financing Liquidity Facility (FLPP) and non-subsidised mortgages.
The FLPP scheme is intended for low-income communities who meet government requirements, while non-subsidised mortgages are prepared to reach a broader segment of the public.
For non-subsidised mortgages, BTN is also preparing a special programme with down payments starting from 5 per cent and attractive promotional interest rates.
The presence of both schemes provides financing options that can be tailored to the needs and capabilities of prospective Manggarai Housing consumers.
The FLPP scheme is in line with the development objective of Manggarai Housing to provide decent and affordable housing in the city centre for low-income communities who meet government qualifications.
Alongside the groundbreaking, BTN and PT KA Properti Manajemen (KAI Properti) also signed a Cooperation Agreement for the Manggarai Housing Programme.
The agreement was signed by Nixon together with KAI Properti President Director Mohamad Ramdany, continuing the collaboration between BTN and KAI that was previously initiated through a Memorandum of Understanding.
The cooperation covers the development of financing schemes, provision of banking and transaction services, joint marketing, and support for financing access for consumers.
BTN is also preparing balé by BTN as one of the channels for registering interest and paying the Booking Order Number for Manggarai Housing.
Meanwhile, Minister of Housing and Settlement Areas Maruarar Sirait appreciated BTN’s role in financing subsidised housing.
He said BTN’s capacity in distributing FLPP can support the development of similar housing by utilising KAI assets in other locations.
Manggarai Housing is being developed on approximately 2.2 hectares of land and is planned to consist of eight towers of 24 storeys. A total of 1,276 units will be built in Block G across three towers, while Block F will have five towers with a total of 2,508 units.
The entire project will also be equipped with 150 supporting retail units, with housing options ranging from a 28-square-metre studio type to a 52-square-metre type with three bedrooms. Construction of the entire project is targeted to take around 18 months.