Media Coverage / 16 July 2020

SMF Provides Long-Term Mortgage Funds Through 2 Schemes

In the Tapera program, SMF can only touch the demand side, namely housing finance for debtors.

Jakarta – PT Sarana Multigriya Financial provides long-term housing loan funds through two schemes namely securitization and refinancing to support the public housing savings program.

PT Sarana Multigriya Financial (SMF) President Director Ananta Wiyogo said that the company was ready to support the public housing savings program (Tapera) that would be provided by the Tapera Management Agency (BP) starting in 2021.

“We are here to minimize the mismatch done by the KPR [home ownership loan] distributors such as banks. Our source comes first from capital injection from the government, additional state capital. Then we also actively issue debt securities in the Indonesian capital market,” he said in an online discussion about tapera, Thursday (07/16/2020).

He said that the SMF in the Tapera program could only touch the demand side of housing finance for debtors.

“We are secondary, we cannot go directly to the primary. So, the funds generated are mostly channeled to banks that focus on mortgages on the demand side. If we can go to the supply side,” Ananta said.
SMF also serves the lower middle market to be able to get housing finance funds. Therefore, the SMF became the Ministry of Finance’s special mission vehicle as well as the government’s fiscal tools.

Meanwhile, throughout the year the 2020 housing finance liquidity facility (FLPP) distribution is targeted to reach Rp3.7 trillion for 102,000 homes. Until July 3, the realization reached 75,000 houses.

“Because SMF is active, it also provides funds for KPR FLPP, where 75 percent of funds are provided by the government through PPDPP [Center for Housing Finance Fund Management]. The bank portion is provided by SMF as long as the FLPP KPR. In the FLPP program, when FLPP enters the site, the function “SMF still exists, providing 25 percent of funds from the FLPP,” he said.

Source :  Bisnis.com