BTN pushes FLPP for vertical housing as mortgage growth slows
Jakarta (ANTARA) - PT Bank Tabungan Negara (Persero) Tbk (BTN) is pushing a strategy to distribute the Housing Financing Liquidity Facility (FLPP) for vertical housing in urban areas, following a slowdown in mortgage growth this year.
BTN President Director Nixon LP Napitupulu acknowledged that the slowdown in mortgage growth is a concern for the company, as the housing sector, particularly subsidized mortgages, remains the core of BTN’s business.
“We admit that growth compared to last year is slower, especially in subsidized mortgages. Therefore, we are continuously pushing our future strategy towards urban housing through the government’s FLPP programme for high-rise buildings,” Nixon stated during the Public Expose Live 2026 in Jakarta on Thursday.
Nixon reported that as of August 2026, BTN has disbursed approximately 120,000 to 130,000 mortgage units.
He explained that the mortgage slowdown is inseparable from the current sluggish condition of the construction and housing industry, particularly within the low-income community (MBR) segment.
“If we look at mortgage growth, especially for the MBR segment, both house construction and home purchases are indeed slower,” he said.
Consequently, BTN has not revised its 2026 credit growth target, maintaining it within the 8-10 per cent range.
“We do not dare to set a target that exceeds the current trends occurring in the housing industry,” he added.
Nixon continued by noting that from the supply side, house construction still faces several obstacles, particularly in West Java Province. Licensing issues are one of the factors preventing optimal housing supply growth.
“The supply side is also slow, especially in West Java. There are several issues regarding permits and so on,” he noted.
Amidst these conditions, BTN remains committed to maintaining its position as a bank focused on housing finance.
Nixon mentioned that BTN’s overall mortgage market share has reached approximately 38 per cent, while its share of the specifically subsidised mortgage market reaches around 80-81 per cent.
“We are solidifying BTN’s position as the mortgage market leader in Indonesia. Our new vision today is to become the primary partner in the financial empowerment of families, or what we call ‘beyond mortgage’. BTN is beginning to adopt a business approach based on an integrated ecosystem,” he said.
As of the end of December 2025, BTN recorded credit disbursements of Rp400.6 trillion, representing an 11.9 per cent year-on-year growth.
These disbursements were still dominated by housing loans, which accounted for approximately 82 per cent of the company’s total loans throughout 2025.
The mortgage segment grew by 8.7 per cent to Rp304.2 trillion, while other housing loans grew by 5.1 per cent.