Jakarta, January 21, 2025 – Minister of State-Owned Enterprises (SOEs) Erick Thohir expressed support for PT Bank Tabungan Negara (Persero) Tbk (BTN) in protecting the public from irresponsible practices carried out by housing developers and notaries in the process of completing land and property ownership certificates for borrowers. This effort is aimed at ensuring that citizens can fully enjoy their housing ownership rights with legal protection from the state.
In his remarks, Minister Erick Thohir urged BTN to accelerate the completion of borrowers’ certificates by improving its systems and implementing good corporate governance (GCG) to support the success of the Three Million Houses Program initiated by President Prabowo Subianto’s administration.
“I appreciate BTN for carrying out self-correction and system improvements, especially as BTN continues to grow. The Three Million Houses Program is a program that must succeed, and BTN supports 82% of subsidized housing,” the Minister said during a press conference in Jakarta on Tuesday (21/6).
On the same occasion, the Minister expressed appreciation for developers and notaries who have performed well. “But I apologize—I request that problematic developers and notaries be blacklisted, and I hope that Himbara (the Association of State-Owned Banks) will share data to ensure maximum protection for the people. So if necessary, all developers who are blacklisted should also be blacklisted by all Himbara banks,” Erick emphasized.
The Minister stated that accelerating improvements in certificate completion is one of the key foundations of the Three Million Houses Program so that the program can run smoothly. The Three Million Houses Program involves many parties, including the private sector, and utilizes the banking system, both Himbara banks and private banks.
Furthermore, the Minister explained that the complexity of the program can be addressed through greater transparency. “The widest possible disclosure of data—identifying which developers will be given opportunities by the government to expand, whether from regional to national level. That is what we must encourage, because this is the President’s direct vision. We must ensure that government funds that have been distributed do not end up in the wrong hands,” Erick explained.
At the same event, BTN President Director Nixon LP Napitupulu stated that Indonesia’s housing sector still faces issues with developers whose certificates fall into the category of Beyond the Tolerance Threshold (Luar Ambang Toleransi/LAT). Developers with LAT certificates are those with administrative issues in completing core documents or certificates because they have exceeded the deadline set by the bank. In fact, certificates are the rightful property of the public and must be handed over after borrowers complete their mortgage payments.
Nixon said BTN acknowledges that the certificate completion process has continued to improve. “Today, since 2019, as many as 80,000 certificates have been completed by BTN with assistance from the National Land Agency (BPN), allowing the process to move faster,” Nixon stated.
Nixon explained that BTN’s improvement efforts include profiling and rating developers into categories such as Platinum, Gold, Bronze, and non-rating. Developers in the non-rating category, he said, are not given priority for mortgages (KPR) or Kredit Yasa Griya.
“We are making improvements through the establishment of a task force to resolve this issue. Another effort is opening a call center for public complaints regarding certificate problems experienced with developers,” Nixon explained.
With these efforts, Nixon targets the completion of 15,000 LAT certificates this year out of a total of 38,144 certificates.
Furthermore, Nixon emphasized that BTN will stop working with developers associated with LAT certificates and will share the blacklist with BP Tapera, so those developers can no longer distribute subsidized mortgage programs. As a result, based on BP Tapera’s database, no bank will be able to process subsidized mortgage programs for them.
In addition to targeting problematic developers, BTN is also addressing problematic notaries by improving its profiling system, re-registering notaries, and implementing a rating system, allowing BTN to identify which notaries are responsible and reliable.
“We will create a Service Level Agreement (SLA) of a certain number of days to complete certificates—usually the SLA is three months. Once it reaches the threshold, we will freeze them,” Nixon said
