Jakarta, May 26, 2025 – PT Bank Tabungan Negara (Persero) Tbk (BTN), through its Sharia business unit BTN Syariah, reaffirmed its commitment to supporting the Indonesian government’s national housing development program by providing Sharia-compliant home financing schemes. In this regard, BTN met and held discussions with the Islamic Development Bank (IsDB) alongside the Government of Indonesia to explore innovative partnership schemes for the provision of decent and affordable housing.
The meeting took place on the sidelines of the IsDB Annual Meeting 2025 held in Algiers, Algeria. During the session, BTN Director of Finance and Strategy Nofry Rony Poetra, together with Deputy Minister of Housing and Settlement Areas Fahri Hamzah and Head of the Hajj Fund Management Agency (BPKH) Fadlul Irmansyah, held discussions with IsDB Group President Muhammad Sulaiman Al Jasser.
Nofry stated that BTN, as a bank with deep expertise in housing finance, offers various Sharia-based financing schemes that could be synergized with IsDB’s support. He added that a partnership with IsDB could potentially materialize through pilot projects in selected priority regions.
“BTN has a Sharia business unit, BTN Syariah, which serves as an accelerator alongside its parent company in providing subsidized housing financing. Various Sharia financing contracts such as Musyarakah Mutanaqisah, Murabahah, and Istishna are available to help people own their dream homes with installment certainty. BTN Syariah is ready to collaborate with IsDB and other global investors to support the government’s national housing development program,” Nofry said in a written statement.
On the same occasion, Deputy Minister Fahri Hamzah emphasized that Indonesia requires creative and sustainable financing solutions to achieve its national housing targets and reduce the housing backlog, particularly for low-income communities (MBR). He noted that IsDB plays an important role in providing technical assistance and Sharia-compliant financing aligned with sustainability and social justice principles.
IsDB Group President Muhammad Sulaiman Al Jasser welcomed the Indonesian government’s initiative and expressed interest in further exploring Indonesia’s housing financing model, particularly those involving collaboration among national institutions such as BTN and BPKH.
Exploring Liquidity Support
During the meeting in Algiers, BTN also engaged with delegates from the Islamic Corporation for the Development of the Private Sector (ICD) and the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), both members of the IsDB Group, to discuss potential cooperation in fulfilling liquidity needs for the national housing development program.
Nofry explained that sufficient and sustainable liquidity is crucial for BTN and BTN Syariah to scale up housing financing. With potential funding support from Sharia-based international institutions such as ICD and ICIEC, BTN Syariah could broaden its funding sources, including issuing global sukuk (Islamic bonds) and Sharia asset-backed securities.
Preparing for Spin-Off
Although BTN Syariah currently operates as a Sharia Business Unit (UUS), it is expected to become a full-fledged Sharia Commercial Bank (BUS) upon receiving approval from the Financial Services Authority (OJK) to proceed with its spin-off from the parent company. This process is mandated under Law No. 4 of 2023 on Financial Sector Development and Strengthening (P2SK) and Financial Services Authority Regulation (POJK) No. 12 of 2023.
Once it becomes a Sharia Commercial Bank, BTN Syariah will have greater capacity to absorb funding and channel it into Sharia-based housing financing.
“BTN Syariah is projected to become a major player in Indonesia’s Islamic banking industry, supported by its housing sector expertise and its longstanding contribution to developing the national housing ecosystem alongside BTN,” Nofry said.
“BTN Syariah is projected to become a major player in Indonesia’s Islamic banking industry, supported by its housing sector expertise and its longstanding contribution to developing the national housing ecosystem alongside BTN,” Nofry said.
Sincerely,
Ramon Armando
Corporate Secretary
PT Bank Tabungan Negara (Persero) Tbk
Phone: +62 21 633 6789
Email: csd@btn.co.id
