SMF to Distribute Rp 11.2 Trillion FLPP Subsidized Mortgage for Low-Income Communities in June 2022

JAKARTADAILY.ID – Indonesian government continues to push for the availability of access to decent and affordable housing for all Indonesians.

The government provides the Housing Financing Liquidity Facility (FLPP) Home Ownership Credit Program (KPR) for low-income communities (MBR).

Until June 2022, the FLPP program has supported the ownership of as many as 1.1 million housing units in Indonesia with funds reaching Rp 97.44 trillion.

This year, the government has provided funds of Rp 30 trillion for the program, and until June 2022 it has reached the target of 200 thousand housing.

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The source of funds amounting to Rp 30 trillion comes from the State Revenue and Expenditure Budget (APBN) which is channeled through State Equity Participation (PMN) of Rp 21.1 trillion.

These funds were then transferred to the People's Housing Savings Management Agency (BP Tapera) for Rp 19.1 trillion and to PT Sarana Multigriya Finansial (SMF) for Rp 2 trillion.

The Minister of Finance (Menkeu) Sri Mulyani Indrawati revealed that efforts to support homeownership through various schemes in the form of policies and subsidized credit (FLPP) to reduce the backlog by using the APBN.

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SMF President Director, Ananta Wiyogo said that in carrying out the program, SMF used PMN funds received and then combined them through the issuance of debt securities (leverage).

From August 2018 to June 2022, SMF has distributed FLPP mortgage funds of Rp 11.2 trillion for 318,413 housing units.

"This is a manifestation of the state's existence to support homeownership for all Indonesian people, especially MBR. Where the funds channeled for this subsidized mortgage come from the state budget, which is used as much as possible for the welfare of the Indonesian people," said Ananta in a press release, Monday, August 22, 2022.

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The SMF as the Ministry of Finance's Special Mission Vehicle in this program acts as a fiscal tool for the Ministry of Finance in easing the Government's fiscal burden by financing the 25 percent portion of FLPP mortgage funding so that the Government only provides 75 percent of the total FLPP funding which was originally 90 percent.