In 2017, SMF will Increase the Synergy of KPR Distribution with BPD Outside Java Island

Press Release / 23 Jan 2017

Tahun 2017, SMF akan Tingkatkan Sinergi Penyaluran KPR dengan BPD di Luar Pulau Jawa

Pekanbaru 23 Januari 2017 – PT Sarana Multigriya Finansial (Persero) or SMF in 2017 plans to expand the segment of KPR loan distribution, one of them to the Regional Development Bank (BPD) throughout Indonesia. SMF is optimistic that the synergy of KPR distribution with all BPD will contribute positively to the economy of the country, especially in the effort to provide a decent and affordable home for every family in Indonesia.

President Director of SMF Ananta Wiyogo said that the cooperation of KPR financing by cooperating with BPD, especially outside Java Island is very important, besides as a benchmark of SMF’s success in distributing KPR, also to encourage the development of housing outside Java. Ananta views BPD has an important role in the distribution of mortgages in various regions throughout Indonesia, because BPD tends to be more specific and more familiar with the characteristics of people in their respective regions.

In addition, he added that the need for housing is a large market share for BPD, particularly in facilitating people in need of decent housing, primarily for Low Income Communities (MBR). This is in line with the transformation of BPD proclaimed by the Government. So far, there are not many BPDs that have become the suppliers of KPR, therefore SMF in this case will continue to cooperate with BPD-BPD, starting with the socialization of SOP KPR BPD SMF which has been published in 2016 and in cooperation with the Association of Regional Development Banks Asbanda) and Ministry of Public Works (PUPR).

SOP KPR BPD-SMF consists of policies and workflows in the distribution of mortgages include origination activities, underwriting, and servicing to credit recovery for BPD. SOP KPR BPD SMF aims to improve the ability to jointly serve the needs of the community, in this case of course BPD needs to have a standardized program with proper. This is the 3rd pillar of BPD champion, where BPD needs to have a standardization program and provide the widest access to the local community through the creation of more varied and superior products and services.

“We have a vision and mission to increase synergy with BPD to increase the KPR volume through the KPR BPD refinancing program, and facilitate the issuance of EBA through the mortgage securitization program with underlying is the entire KPR BPD. We see the role of BPD in the future will be more significant, with the transformation in the body of BPD. Where BPD will be synergized and can become a competitive regional champion, and more contribute to the regional economy, “said Ananta. PT Sarana Multigriya Finansial (Persero), is a State Owned Enterprise (SOE), under the Ministry of Finance, assumes the task of the Government as a special mission vehicle to build and develop Secondary Housing Market through securitization and financing. Regarding the distribution of mortgage funds, SMF has channeled medium / long term funds from the capital market to the primary housing financing sector until cumulative 2016 reached Rp27.29 trillion. Nominal consists of facilitating securities transactions of mortgages amounting to Rp7, 16 trillion and lending of Rp20, 14 trillion with NPL 0%. Meanwhile, for funding of SMF Financing Program has issued bonds amounting to Rp15.042 trillion. In the year 2009, up to now SMF has conducted 10 securitization transactions where the securitization is 9 times done in collaboration with Bank BTN and once with Bank Mandiri. SMF has also cooperated with 13 Regional Development Banks in all regions in Indonesia (including BPD Riau Kepri), where 3 of them are still in the MoU phase, SMF has also cooperated with 6 Bank Syari’ah, and 4 Financing Companies, where one finance company Still in the MOU stage.

Related to the work plan in 2017, Ananta said that SMF will focus on expanding the segment of loan disbursement, namely to BPD throughout Indonesia, and finance companies. In the near future SMF will also release SMF mortgage products.

Ananta hopes that with more fund flow to be used for KPR distribution, it is hoped that a sustainable mortgage portfolio will be established with standards ready for securitization.