Suzhou, June 20, 2025 – PT Bank Tabungan Negara (Persero) Tbk (BTN) reinforced its strategic role in supporting the transition toward a green economy by introducing Indonesia’s Subsidized Home Ownership Loan (KPR Subsidy) at the UNEP FI Regional Roundtable on Sustainable Finance Asia Pacific hosted by United Nations Environment Programme Finance Initiative in Suzhou, China.
At the global sustainable finance forum, BTN presented its subsidized mortgage scheme as a solution that delivers broad social benefits while maintaining sustainable financial performance.
Social Value and Profitability Can Go Hand in Hand
BTN Director of Risk Management Setiyo Wibowo explained that BTN holds a unique position in Indonesia’s banking sector. The bank carries a dual mandate: supporting President Prabowo Subianto’s National Housing Program by expanding access to affordable housing, while also generating sustainable financial returns.
Of BTN’s consumer loan portfolio—approximately 70% of total loans—around 90% consists of mortgages, largely accessed by low-income communities.
“BTN’s subsidized mortgages are not only a solution to affordable housing challenges for low-income families. For BTN, they also serve as a key business growth engine. This proves that social value and profitability can go hand in hand,” Setiyo stated at the UNEP FI forum on Thursday (June 19).
Tangible Social Impact
Setiyo highlighted the significant social impact of BTN’s subsidized mortgage program:
He emphasized that careful portfolio management is essential to balancing profitability with social impact. BTN continues to strengthen adaptive risk management practices amid growing climate-related risks such as floods and wildfires.
“We continuously optimize our portfolio to generate profit, strengthen social contributions, and mitigate climate risks. Profit and impact must go together,” he said.
Commitment to Sustainable Finance
BTN’s sustainable finance transformation began in 2023, starting with the implementation of an Impact Analysis based on the UNEP FI Principles for Responsible Banking (PRB) and the development of a comprehensive Environmental, Social, and Governance (ESG) framework.
BTN became the first Indonesian state-owned bank to sign the UNEP FI PRB and publicly report its responsible banking progress. Through this framework, BTN has also launched its Low-Emission Housing (Rumah Rendah Emisi) program to reduce infrastructure-related carbon footprints.
“Through Low-Emission Housing, BTN seeks to address the climate crisis, fulfill its social mandate, and continue delivering positive profits,” Setiyo concluded.
