Press Release / 1 July 2021

SMF, PPDPP & Bank Kaltimtara Synergize to Strengthen Subsidized Mortgage Distribution in the Prospective New Capital City

Jakarta 1st July 2021 – The Center for Housing Financing Fund Management or PPDPP and PT Sarana Multigriya Finansial (Persero) or SMF establish synergy with the Implementing Bank, namely PT Bank Pembangunan Daerah East and North Kalimantan or Bank Kaltimtara to increase the distribution of Housing Loans for Housing Financing Liquidity Facility ( KPR FLPP) in the East Kalimantan area which is a candidate for the state capital.

This collaboration was realized through the signing of a tripartite and bipartite partnership for the 2021 SMF KPR FLPP Companion Fund which was signed by the President Director of PPDPP, Arief Sabaruddin, SMF President Director, Ananta Wiyogo, and Bank Kaltimtara President Director, Muhammad Yamin through an online ceremony on Wednesday. (30/6).

Through this collaboration, SMF plays a role in providing mentoring funds to reduce the Government’s fiscal burden by financing the 25% portion of FLPP mortgage funding, so that the Government only provides 75% of the total FLPP funding from the original 90%. The existence of mentoring funds from SMF is expected to be a solution in overcoming mismatch funding in the distribution of FLPP mortgages in Indonesia as well as being a part of efforts to support the acceleration of National Economic Recovery (PEN), especially in the housing sector.

SMF President Director, Ananta Wiyogo hopes that Bank Kaltimtara can become a strategic partner that can provide mutual support to increase mortgage distribution in the region, especially in the future East Kalimantan will become the capital city of Indonesia. According to him, this is a potential long-term synergy for SMF and Bank Kaltimtara in the future.

On the same occasion, the President Director of Bank Kaltimtara, Muhammad Yamin expressed his gratitude to PPDPP and SMF for the collaboration. According to him, this collaboration can encourage Bankaltimtara to maximize the distribution of livable mortgages for Low-Income Communities (MBR) and can continue cooperation in supporting medium/long-term funding for Bankaltimtara in mortgage distribution.

“We hope that this collaboration can make East Kalimantan the new modern capital of the Republic of Indonesia through the Smart City and Forest City concepts, and make it a symbol of the identity of the Indonesian nation and state. He also hopes that IKN can improve the economic life of all people on the island of Kalimantan so that they are able to compete in the demands of modernizing a state capital while maintaining the values ​​of local wisdom,” said Muhammad Yamin.

Originally, PPDPP had synergized with SMF in funding the 25% portion of FLPP mortgages since August 2018. Related to this, PPDPP President Director, Arief Sabaruddin said that currently PPDPP and SMF were discussing reducing the FLPP portion to 60% and 40%. The hope in the future is to increase the quantity of FLPP mortgages to be distributed to MBR.

Regarding the synergy in the FLPP Mortgage Program, since August 2018 until now, SMF has succeeded in realizing the distribution of FLPP mortgage funds, to 187,276 debtors with a total disbursement of Rp 6.3 trillion through 15 FLPP mortgage lending banks.

Ananta said that the realization of the FLPP KPR distribution was SMF’s commitment in the Fiscal Burden Reduction Program which was realized through providing support to the Government through the FLPP KPR program, in coordination with PPDPP, Ministry of PUPR. “We are optimistic that this synergy can contribute to the acceleration of the National Economic Recovery and encourage an increase in the distribution of FLPP mortgages, especially in various regions in Indonesia,” said Ananta.

The government through PPDPP in 2021 places a budget for FLPP distribution of Rp. 19.12 trillion, consisting of Rp. 16.12 Trillion of 2021 DIPA and Rp. 2.5 Trillion of principal returns, for 157,500 housing units. The realization of FLPP as of June 30, 2021 was 87,444 units with a value of Rp 9.52 trillion. So that the total distribution of FLPP from 2010 to June 29, 2021 is IDR 65.11 trillion for 852,299 housing units.

In 2021, the FLPP target from Bank Kaltimtara is 300 housing units with a value of Rp 32.19 billion. Bank Kaltimtara’s FLPP realization as of June 29, 2021 was 239 units with a nominal value of IDR 27.55 billion, or has reached 85% of the target. From this achievement, Bank Kaltimtara has met the criteria to increase the FLPP quota.