Video: In the Era of High Interest Rates, BTN Offers Home Loan Promotions

The President Director of PT Bank Tabungan Negara (Persero) (BBTN), Nixon Napitupulu, continues to drive the transformation of Bank BTN to accelerate the distribution of Home Ownership Loans (KPR) in support of the government’s 3-million-house programme. The provision of affordable housing finance is expected to address home ownership issues while acting as a driver for Indonesia’s economic growth, given that house construction involves 182 different business sectors.

However, challenges remain within the housing supply sector, particularly regarding licensing, land certification, and the need for cheaper construction technologies, such as the use of recycled materials. Furthermore, improvements in residential spatial planning are required to ensure that residential developments are conducive to the lives of their inhabitants.

In an effort to stimulate housing demand, BTN has proposed extending mortgage tenures from 20 to 40 years, alongside introducing cheaper home insurance to mitigate the high costs of mortgages. Additionally, BTN is offering affordable interest rates for home furniture loans. The discussion also explores how BTN ensures that affordable housing programmes can maintain liquidity and manage Non-Performing Loans (NPL) during this era of high interest rates.