One of the primary needs of humans is a house to shelter them from the elements. Bearing in mind the numerous problems any person has to face in acquiring a house, in particular that of funds, the State Savings Bank (BTN) as the home financing market leader continues to introduce new ways and shortcuts to facilitate home ownership.
For 61 years, BTN has been a symbol of trust for its consumers who dream of a hire-purchase house with soft installments, both for a subsidized and non-subsidized house.
"BTN is the only bank that since way back when has focused on providing soft loans for low cost houses in Indonesia,” asserts Irman A Zahirud in his capacity as BTN Managing Director.
BTN’s integration in providing home loans, in particular for the low to middle class society, has motivated the government since October 2010 to entrust BTN with disbursing loans for ownership of low-cost houses (KPR) by way of FLPP.
If all goes as planned, the government’s budget in 2011 for FLPP will be up to Rp 6 trillion plus funds from the bank of 40% of the total aid from the government. “Funds available and ready for disbursement in 2011 will be more or less Rp. 9 trillion to finance the construction of around 200.000 houses throughout Indonesia,” said Irman.
The fixed interest rate applied for KPR by means of FLPP is between 8.15% and 9.95% for a period of up to15 years. According to Irman, creditors may even pay monthly installments for houses cum furnishings not only during the exhibition with the same 15-year term.
BTN is not about to work alone in disbursing KRP FLPP in 2011. Several banks will back up BTN in disbursing KPR FLPP in order to expand coverage.
"BNI, BRI, Bank DKI, and several local development banks are ready to disburse KPR FLPP together with BTN in 2011,” he said.
BTN, during the initial stage will apply KPR FLPP to four of its products, among other KPR Sejahtera Tapak, KPR Sejahtera Susun, and KPR Syariah Susun. As concerns house price reference, BTN will no longer apply the maximal selling price benchmark. However, in the interest of taxation, BTN will for the time being continue to apply the benchmark of Rp. 55 million for rumah sejahtera tapak (formerly RSH/rumah sehat sederhana), and Rp 144 million for rumah sejahtera susun (rumah susun sederhana).
The introduction of FLPP it is expected to be capable of aiding the low-income society by raising the buying power in the housing sector in order to render the price of houses within reach.
"Thus, where there’s love, there are houses, there’s BTN, that’s BTN’s image created during its presence for 61 years in Indonesia,” he says with a smile. He added that BTN in 2011 will raise the total funds absorbed by the society by upgrading BTN’s internal management.
When questioned about the Housing and Settlement Act (UU Perumahan dan Permukiman) on the provision of houses, Irman acknowledged that KPR disbursers must abide by the act. According to him, BTN, who controls 97% of the soft loan housing and settlement provider segment, is consistently ready to provide subsidized houses.
"We are under the obligation of providing KPR minimally for type 36 houses, and BTN is ready for this,” he volunteers.
In addition to its commitment to provide suitable houses for the society, BTN continues to increase credit from the house payment view as provided by the Housing and Settlement Act.
With its mission achieved as the foremost bank in disbursing housing loans, BTN is now stealing a glance at the non-subsidy commercial business for housing under Rp. 1 billion.
"In its position as market leader, in order to grow it must look for other business opportunities, such as taking a peek at housing for the middle-upper class,” said the sturdily built man who has held the position of BTN Director since 2007. .
With an eye to the above, BTN expects to be able to absorb funds to a maximum extent from people from all walks of life, so that it may circulate an even larger amount and consequently with even more people receiving loans.