Press Release / 27 July 2020
Release Positive Performance in Semester I, SMF Consistently Optimizes Business Activities
Jakarta, July 27, 2020 – PT Sarana Multigriya Financial (Persero) or SMF, again recorded an increase in performance achievements throughout Semester 1 of 2020 and consistently performed its function in developing the secondary housing finance market.
This is shown in addition to increasing the number of loan disbursements (financing) to KPR Distribution Institutions, as well as business revenues. SMF is working to optimize its role as the Ministry of Finance’s Special Mission Vehicle (SMV) which is consistent in the midst of the Covid-19 pandemic.
Recorded during Semester I of 2020 SMF has succeeded in channeling loans to KPR distributors in the amount of IDR 4.2 trillion or 32.23% of the 2020 target. Cumulatively the total accumulated funds channeled from the capital market to the housing finance sector from 2006 to June 30 2020, reaching IDR 66.25 trillion consisting of financing of IDR 53.99 trillion, mortgage securitization of IDR 12.15 trillion and purchase of housing loan of IDR 106 billion. The funds disbursed have financed 1,039,532 KPR debtors which consisted of 77% financing, 22.59% securitization and 0.08% KPR purchases.
In addition, the total assets of SMF up to Semester I of 2020 amounted to Rp29.32 trillion, up 39.57% from the same position in the previous year of Rp21.00 trillion. The net profit in the first semester of 2020 reached Rp242.53 billion, up 0.62% compared to the previous year which amounted to Rp241.03 billion.
In Semester I, the SMF has realized the issuance of debt securities through Phase III Sustainable Public Offering of 2020 with a fixed interest rate of Rp 4.01 trillion. These bonds are part of SMF V Sustainable Bonds with a total issuance value of Rp 19 trillion. Previously, the SMF had issued Phase 2 SMF Sustainable Bonds for 2019 worth IDR 2 trillion, SMF Phase II Sustainable Bonds for 2019 IDR 2.202 trillion.
During the first semester of 2020, the total bonds issued were IDR 4.01 trillion, and for information, SMF has actively issued debt securities since 2009. Until the end of the first semester of 2020, the SMF has issued 41 times with a total issuance value of IDR 38 trillion. consisting of 30 bonds issuance with a value of Rp34 trillion, 10 issuances of Medium Term Note (MTN) with a value of Rp3.83 trillion and 1 issuance of Commercial Securities (SBK) amounting to Rp120 billion.
“Bond issuance is an effort of SMF in fulfilling its role as a provider of long-term liquidity for KPR suppliers. This is a form of SMF support for the availability of decent and affordable housing for the people of Indonesia, “said the President Director of SMF, Ananta Wiyogo, in the Press Conference on Achieving the First Semester SMF Performance in 2020, in Jakarta, Monday (07/27/2020).
Related to securitization, SMF also actively conducts socialization and education by opening retail EBA SP sales to universities, ministries and BUMN. It is expected that this asset securitization can accelerate the distribution of funds for housing finance, in order to succeed the One Million Houses Program launched by the Government.
The director of SMF, Ananta Wiyogo said that of all the funds that had been disbursed during Semester I of 2020, particularly for the SMF refinancing program, it had financed approximately 1,039,532 thousand KPR debtors which were divided into 84.26% in the western region, 15.07% in the central region and the remaining 0.67% in the east.
Furthermore Ananta also said that to strengthen the role of SMF as SMV, SMF was also active in realizing the Fiscal Load Reduction Program. The Fiscal Load Reduction Program is realized through providing support to the Government in the KPR FLPP program. SMF played a role in reducing the Government’s fiscal burden by financing a 25% portion of FLPP KPR funding, so the Government only provided 75% of the total FLPP funding from the original 90%.
Since August 2018 until the first semester of 2020, SMF has succeeded in realizing FLPP KPR fund distribution to 121,429 debtors with a total fund distribution of Rp 3,864 Trillion through 12 FLPP KPR channeling banks. This has a positive impact, which is that more and more Low-Income Communities (MBR) are receiving FLPP KPR facilities in addition to the employment of housing construction which results in the creation of a multiplier effect.
Regarding the work plan, Ananta said that in 2020 the Company will focus on supporting the government in the National Economic Recovery Program (PEN) in the housing sector, through several efforts, namely, First, remain consistent in channeling long-term funding support to the FLPP Program. Second, providing relaxation for Homestay Financing for homestay owners through the Company’s Partnership Program, Third, participating in investing in the Ne Securities