At the end of this year, after (the target) is revised, God willing, it will be achieved
Jakarta (ANTARA) - State-run secondary mortgage firm PT Sarana Multigriya Finansial (Persero), or SMF, disbursed loans amounting to Rp6.05 trillion to mortgage loan lenders, or 99.47 percent of the revised target of Rp6.08 trillion, as of the third quarter of 2020.

“At the end of this year, after (the target) is revised, God willing, it will be achieved,” director of SMF, Ananta Wiyogo, said during an online presentation on the company’s third quarter performance in Jakarta on Thursday.

He said SMF’s loan disbursal declined compared to the same period of 2019, when the figure stood at Rp7.61 trillion.

Earlier, SMF had revised a number of performance indicators, one of which was the distribution target for loans, which was brought down from Rp13 trillion to Rp6.08 trillion, or nearly 50 percent.

According to Wiyogo, the revised target and reduced loan disbursement were a result of the COVID-19 pandemic.

He explained that the state-owned firm under the Ministry of Finance optimized other partners, including finance companies, because there were already orders for mortgage commercial loans, especially in the lower middle segment.

The effort was made, he said, because banks currently have abundant liquidity so loan applications or refinancing are not as intense as the previous year.

He said SMF booked a net profit of Rp369 billion, exceeding the target of Rp318 billion, in the third quarter of 2020.

The total revenue earned by the BUMN as of September, 2020 was Rp1.73 trillion, with total assets reaching Rp32.69 trillion.

Between January and September this year, SMF issued Rp7.15 trillion in debt securities, or 83.18 percent of the 2020 target of Rp8.6 trillion.

Meanwhile, accumulated since its establishment in 2006, SMF channeled Rp68.09 trillion in funds to mortgage loan lenders as of September, 2020.

This amount comprised securitization of Rp12.15 trillion, loan disbursement of Rp55.83 trillion, and purchase of mortgages of Rp106 billion.

Regarding securitization, from 2009 to September, 2020, SMF has initiated 13 securitization transactions, both under the scheme of Collective Investment Contract (KIK) of Asset Backed Securities (EBA), or EBA Participation Letter (SP), with a total value of Rp12.15 trillion.

The company has also collaborated with finance companies, commercial banks, Regional Development Banks (BPD), and Islamic Banks for financing.

Regarding sharia financing, SMF’s accumulated distribution of sharia financing from 2009 to September 31, 2020 amounted to Rp11.5 trillion.

In addition, during the same period, SMF issued 44 debt securities, including commercial securities, with a total issuance value of Rp41.21 trillion.

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Translator: Dewa Wiguna, Azis Kurmala
Editor: Sri Haryati
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