Jakarta. Indonesia is preparing a housing finance scheme worth up to Rp 130 trillion ($8 billion) through its newly established sovereign wealth fund, Daya Anagata Nusantara (Danantara). The financing will involve the association of state-owned lenders, known as Himbara.

The funds will be disbursed through housing microcredit loans (KUR) and commercial mortgage schemes, according to Heru Pudyo Nugroho, Commissioner of the Public Housing Savings Management Agency (BP Tapera).

“This initial Rp 130 trillion is a starting exercise for liquidity support under the microloan policy,” Heru said Friday following a follow-up meeting between the Housing and Settlements Ministry (PKP) and Danantara in support of the government’s three-million-home program.

President Prabowo Subianto aims to construct 2 million affordable homes in rural areas and an additional 1 million in cities annually, as the country grapples with a housing shortage. 

The proposal will be submitted to the KUR Policy Committee, chaired by the Coordinating Ministry for Economic Affairs. A cross-agency working group will also be established to finalize the technical implementation of the housing KUR.

Working group members will include representatives from the Housing Ministry, Danantara, BP Tapera, and Himbara banks: Bank Mandiri, BRI, BNI, BTN, and Bank Syariah Indonesia (BSI).

“This is still in the discussion stage. The next step is to form a joint working group to operationalize the KUR scheme,” Heru added.

Danantara CEO Rosan Roeslani reaffirmed the agency’s full support for the Housing Ministry’s agenda.

“We estimate that by the end of this year, we could reach Rp 130 trillion in financing. The structure has been finalized, and the program is ready to roll,” Rosan said Tuesday.

He added that all state-owned banks, including BSI, have agreed to participate in the initiative. Rosan also confirmed that the government would provide loan guarantees and interest subsidies to encourage bank involvement.

“The financing will include competitive interest subsidies, and disbursement will begin soon,” he said.

However, Rosan stressed the importance of strong governance and prudent lending practices.

“Banks must follow established lending criteria to ensure proper implementation. We expect full compliance with regulatory standards,” he said.

Rosan expressed confidence that the initiative would spur economic growth while delivering tangible benefits to the public.

“We are fully committed to making this work,” he said.

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