Mortgage Growth Slows but BTN Maintains Credit Targets, Here is Why

PT Bank Tabungan Negara (Persero) Tbk (BBTN) remains optimistic that credit distribution growth this year will reach its target of 8% to 10% year-on-year, despite a slowdown in low-income home ownership loans (KPR).

BTN President Director Nixon L.P. Napitup_ulu stated that this optimism will be driven by other sectors, specifically the acquisition of retiree credit portfolios from SMBC Indonesia. Consequently, BTN will not revise its targets from the Bank’s Business Plan (RBB) at this time.

“It remains the same as the initial RBB,” he said during the Public Expose Live 2026 in Jakarta on Thursday (10/09/2026).

Nixon explained that credit growth up to the first semester of this year was driven by corporate actions. “If anything, it might be 10.1% or 10.2%. It will not exceed that,” he added.

Nixon noted that BTN will currently be more selective in distributing credit, particularly in several segments, including mortgages for low-income communities (MBR).

“If we look at the growth of mortgages, especially for the low-income segment, house construction and purchases are indeed slowing down. Therefore, we do not dare to set targets that exceed the current trends occurring in the housing industry,” he explained.

Furthermore, Nixon mentioned that the housing supply side is also still facing obstacles, particularly in West Java. One of the issues cited was licensing.

“The supply side is also still slow, especially in the West Java region. There are several issues regarding licensing and so on. That is why we are maintaining our target figure at 8 to 10 per cent,” he concluded.