BTN Says Subsidised Mortgages Hold Up Amid Economic Slump

PT Bank Tabungan Negara (BTN) assesses that demand for subsidised housing and first-time home purchases remains steady. This situation persists despite pressures on purchasing power amid the economic slowdown.

BTN’s President Director Nixon Napitupulu states that first homes represent a basic need. Society continues to strive to fulfil this requirement.

“First homes (subsidised) are a basic need, just like clothing, food, and shelter. When people get married, they definitely want to buy a house. No matter what happens, they will work and find ways to own a home,” said Nixon in Bandung on Thursday (9/4/2026).

Home financing does not solely depend on individual income. Family support often serves as an additional source, particularly for the down payment.

“Borrowing from family, from siblings or parents for the DP, that’s common in Indonesia,” he said.

This condition makes demand for first homes relatively more resistant to short-term economic cycles. In contrast, purchases of second homes or investment properties are more sensitive to economic conditions.

“If it’s a second home (for investment), that’s probably what’s declining due to the cyclical economy,” said Nixon.

BTN views this slowdown as not entirely reflecting a drop in purchasing power. Seasonal factors also influence credit realisations, particularly in the subsidised housing segment.

“Housing trends are always slower during the rainy season. Faster during the dry season,” said Nixon.