"BTN has distributed FLPP loans amounting to Rp2.29 trillion."
Jakarta (ANTARA News) - The Public Housing Ministry has urged all banks in the country to be more active in distributing credits under Housing Loan Liquidity Facility (FLPP), a government-subsidized mortgage program for Indonesian citizens who have never owned a house and earn less than Rp3.5 million (approximately US$365) per month.

"Only 62,055 houses have been built under the FLPP program so far this year, while the target for 2012 was 133,000 units," the Public Housing Ministry`s Deputy Minister for Finance, Sri Hartoyo, stated in a press release received by ANTARA News here on Wednesday.

He said the ministry expected the number of houses built under FLPP to reach 65,000 to 70,000 units by the end of 2012.

"The disbursement of FLPP loans so far this year has reached 62,055 units, with a value of Rp2.45 trillion. Bank Tabungan Negara (BTN) has distributed the highest number of FLPP mortgages," Hartoyo noted.

"BTN has distributed FLPP loans amounting to Rp2.29 trillion for the construction of 57,885 houses, while its Syariah division has distributed FLPP loans worth Rp107 billion for the construction of 2,746 houses," he continued.

"However, other banks involved in the housing finance program distributed smaller amounts of FLPP loans, with which only 100 to 600 houses could be built," Hartoyo pointed out.

He said the government was optimistic that there would be better distribution of FLPP loans next year, adding that the Ministry had allocated Rp7.342 trillion to the FLPP program for 2013.

Earlier, the Public Housing Ministry had targeted to distribute FLPP loans worth Rp2.7 billion in 2013, for the construction of 350,000 houses.

"Currently, six national private banks and 14 regional development banks are cooperating with the Ministry in implementation of the FLPP program," the Public Housing Ministry`s Assistant Deputy Minister for housing finance, Iwan Nurwanto, said on October 29.

He stated that the six state-owned banks cooperating with the Ministry in the effort were Bank Tabungan Negara (BTN), BTN Syariah, Bank Negara Indonesia (BNI), Bank Rakyat Indonesia (BRI), BRI Syariah and Bank Mandiri.

According to Ministry data, Bank BTN (including its Syariah division) has significantly contributed to the FLPP program, with loans distribution reaching 99.2 percent.

"We hope the other banks can also contribute more to the FLPP program, so more low-income can have proper houses," Nurwanto said.
(U.Y012/INE/KR-BSR/B003)

Editor: Priyambodo RH
Copyright © ANTARA 2012