SMF: Subsidised Housing Financing Remains Protected Amid Economic Uncertainty
Jakarta — PT Sarana Multigriya Finansial (Persero), through its SMF Research Institute, has confirmed that financing for the people’s housing programme, including subsidised housing through the Housing Financing Liquidity Facility (FLPP) scheme, remains secure and sustainable despite significant economic uncertainty.
SMF Chief Executive Ananta Wiyogo stated that the company continues to optimise its blended financing strategy through the issuance of debt securities and asset-backed securities (EBA-SP) and is expanding its domestic investor base to maintain the sustainability of FLPP financing.
“This approach is implemented whilst maintaining the principles of prudence, strong risk management, and good governance,” said Ananta in a statement issued in Jakarta on Friday.
As a special mission vehicle (SMV) of the Ministry of Finance, SMF has a strategic mandate to provide long-term financing to banks that distribute mortgage credit (KPR) and to support the government’s FLPP programme.
Since 2018, SMF has consistently provided 25 per cent of financing under the FLPP mortgage scheme. This support ensures that low-income households continue to have access to home financing with fixed and affordable interest rates, even as financial market conditions adjust.
SMF views Indonesia’s economic growth in 2025 as an opportunity to further strengthen its role in developing the housing sector through secondary mortgage financing mechanisms. This role is increasingly strategic in ensuring the long-term continuity of financing for the national mortgage industry.
From a macroeconomic perspective, Indonesia recorded solid economic growth throughout 2025, maintained at around 5 per cent. In the fourth quarter of 2025, the economy grew 5.39 per cent year-on-year, higher than the previous quarter’s 5.04 per cent year-on-year growth.
Overall, 2025 economic growth reached 5.11 per cent year-on-year, an increase from 2024’s achievement of 5.03 per cent year-on-year.
This growth was supported by household consumption and investment, which grew positively. These conditions are viewed as an important foundation for the property and housing finance sectors entering 2026.
The stable macroeconomic conditions are also reflected in mortgage performance, which showed an upward trend in the final three months of 2025. Mortgage growth was recorded at 6.9 per cent year-on-year in October 2025 and increased to 7.05 per cent year-on-year in December 2025. This trend indicates an improvement in housing finance demand and sustained optimism in the property sector.
Going forward, SMF stated that it will continue to monitor global and domestic economic developments to ensure that housing finance support remains adaptive and aligned with the government’s agenda of accelerating the fulfilment of people’s housing needs and reducing the national housing deficit.
SMF is also confident that macroeconomic stability and a strengthened housing finance ecosystem will be key to maintaining momentum in the people’s housing programme, so that adequate and affordable housing becomes increasingly accessible to Indonesian society.