BTN wins UN award for housing program

JAKARTA (JP): The state-owned Bank Tabungan Negara (BTN) was awarded the United Nations' "Habitat Scroll of Honor" yesterday for its home ownership loan program for poor people.

The award from the UN Center for Human Settlement (UNCHS) was presented by UN resident coordinator in Indonesia C. Jan Kamp to BTN president Widigdo Sukarman at a ceremony attended by State Minister for Public Housing Akbar Tandjung.

The bank is one of five recipients of this year's award which includes individuals and institutions from the United Arab Emirates, Senegal, Argentina and Turkey.

C. Jan Kamp said that the bank's innovative planning, which enables low incomes families to buy affordable land, build modest houses and start income generating activities to pay back the loan, won deserved recognition.

The loan called Triguna, or triple function credit, has been developed under the framework of a joint project between the Indonesian government and the UN Development Program (UNDP).

"This credit plan allows low income families, who are otherwise not considered credit worthy under normal banking rules, to obtain housing loans," said Kamp.

The loans, first begun in 1992, have been channeled to seven community groups and cooperatives scattered in Jakarta, Tangerang, Karawang and Bandung in West Java and Solo in Central Java. A total of Rp 3.6 billion in funds has been lent through BTN. Each loan is worth Rp 4.5 million and should be utilized by members of the community or the cooperatives.

Widigdo said the plan was launched after the bank found that the majority of the bank funds for housing construction had gone to developers, though their efforts only account for a small portion of all housing development in Indonesia. About 60 percent of housing construction is done by consumers directly, he said.

"The plan allows consumers to become developers of their own home," he added. (par)