Urbanization, Urban Housing And Housing Finance In Indonesia Pascasarjana UI

HOUSING FINANCE SYSTEM
AND HOUSING FINANCE SUBSIDY
A Case Study of Indonesia

ISKANDAR SALEH

INDONESIA BANKING SCHOOL
Jakarta, 7 November 2016

Decreased to globlal crisis,
Only few countries in positive
growth

INCOME PERCAPITA
( x000 USD)
3,010

3,540 3,751 3,669 3,531 3,362

2010 2011 2012 2013 2014 2015
Source : BPS


DRIVERS OF GROWTH

KEY VARIABLES
GDP (USD Billion)
GDP Growth (%)

2009

2010

2012

2013

2014

2015

510,2 539,4 706,6 846,8


878,0

890,4

861,9

5.8

5.0

4.8

4.5

6.0

2011

6.4


6.2

GDP per Capita

2,345 3,010 3,540 3,751

3,669

3,531

3,362

Inflation (%)

4,90

6,96

4,61


4,30

8,08

8,36

3,35

BI Rate (%)

6,50

6,50

6,50

6,00

7,25


7,75

7,50

Except over the period 1998 – 1999, GDP
growth allows for credit expansion

Increased in GDP per Capita (2013) has
moved Indonesia up to Middle-Income
Country
As inflation decreasing in 2015, the country
expects higher credit growth in 2015-2016.
Source : BPS

Years
1998 – 1999
2000 – 2004
2005 – 2009
2010 – 2015


Avg. Growth
Rate (%)
-6.65
4.60
5.64
5.70

Housing Finance in Indonesia
Mortgage Market Size as % GDP

Total Housing Backlogs 2015

11,3
JUTA UNIT

Housing Backlogs

Sumber: Bank Indonesia, Kemenpera, HDFC, Hofinet, SMF Research 2013


Source : ppdpp.id

100%
% of household

80%

8.000
6.000

60%

4.000
40%
2.000

20%
0%

0

1990

2000

2010

2015

5K-10K USD
< 5K USD
10K-15K USD
>15K USD
Average household disposable Income (RHS)
Source : CEIC, UBS Research

Annual household disposable Income
(USD)

Rising middle
class


GOVERNMENT
HOUSING FINANCE POLICIES AND PROGRAMS
POLICIES:

1) Affordability
 Make the PMT affordable;
2) Accesability
 Provide better credit access
3) Availability
 Promote the Supply of Mortgage thru Special Circuit
in Housing Finance
4) Sustainability
 Integrating Housing Finance to Capital Market thru
Secondary Mortgage Facility

PROGRAMS:
1) Interest Rate Subsidy:
 Provide Liquidity to Partly Finance the Required
Mortgage Principal; and

 Provide Subsidy to Interest Differential between Market Rate
and Subsidized Rate
2) Down Payment Subsidy:
 Reduce the Principal to be Repaid by the Target Group

Mortgage (Rp.)
Down Payment
Down Payment Subsidy

PMT@5,0%

PMT
FLPP

2

4

6


8

10

12

14

16

Repayment Period (Years)
Figure
FLPP Mortgage and Down Payment Subsidy

18

20

Mortgage (Rp.)
Down Payment
Down Payment Subsidy
BI Rate + 5%

PMT
Market
Rate

[email protected]%

PMT
IRS

2

4

6

8

10

12

14

16

18

20

Repayment Period (Years)
Figure

Interest Rate Subsidy Mortgage and Down Payment Subsidy

A MILLION HOUSING PROGRAM

Housing Finance Programs
2015 - 2019
JENIS BANTUAN PEMBIAYAAN PERUMAHAN

SATUAN

1. Bantuan Uang Muka bagi MBR*
- Jumlah rumah tangga yang mendapatkan Bantuan
Rumah Tangga
Uang Muka (BUM)

2015

Renstra

DIPA

TARGET DAN ANGGARAN
2016
Pagu
2017
Renstra
Anggaran

2018

2019

TOTAL

55,000

55,000

106,500

337,839

124,250

124,370

65,880

476,000

220,000

220,000

479,250

1,351,000

621,250

684,035

395,280

2,399,815

- Jumlah rumah tangga yang mendapatkan bantuan
Rumah Tangga
pembiayaan perumahan KPR sejahtera tapak

130,000

65,625

150,000

89,186

175,000

173,500

91,500

720,000

- Jumlah rumah tangga yang mendapatkan bantuan
Rumah Tangga
pembiayaan perumahan KPR sarusun

-

25,000

50,000

75,000

26,500

176,500

- Jumlah rumah tangga yang mendapatkan bantuan
Rumah Tangga
pembiayaan perumahan KPR sewa beli sarusun

-

-

-

1,500

2,000

3,500

- Jumlah unit rumah yang mendapatkan fasilitas
bantuan
pembiayaan Kredit Konstruksi

-

1,000

1,500

2,000

1,500

6,000

-

50,000

150,000

200,000

50,000

450,000

Rupiah

Anggaran ( x Rp 1 jt)
2. Bantuan Pembiayaan Perumahan (KPR-FLPP)
bagi MBR

Unit Rumah

- Jumlah rumah tangga yang mendapatkan bantuan
Rumah Tangga
pembiayaan perumahan KPR Swadaya
Rupiah

Anggaran ( x Rp 1 jt)

10,115,391

5,106,330

25,070,893

9,227,000

42,738,884

58,136,629

ANGGARAN SUBSIDI BANTUAN UANG MUKA
(BA 033.08/ BA 999.07)

220,000

220,000

479,250

1,351,000

621,250

684,035

ANGGARAN FLPP (BA 999.03)

10,115,391

25,070,893

9,227,000

42,738,884

58,136,629

26,030,835 162,092,632

TOTAL ANGGARAN SUBSIDI DAN FLPP (BA 999.03 DAN
999.07)

10,335,391

25,550,143

10,578,000

43,360,134

58,820,664

26,426,115 164,492,447

5,106,330

5,326,330

26,030,835 162,092,632

395,280

Catatan:
 * ) TA. 2015 dibiayai melalui bansos (BA 033), mulai TA. 2016 dialokasikan melalui BA. 999.07.
 BA BUN 999.07 selain untuk BUM juga dialokasikan untuk Subsidi Selisih Bunga (SSB). Pada TA. 2016 telah diusulkan untuk pembayaran SSB tahun kedua yang diterbitkan TA. 2015 sebesar Rp. 1,718 Miliar
untuk sebanyak 199,052 unit dan pembiayaan SSB tahun pertama sebesar Rp. 900 Miliar untuk 386,644 unit.

2,399,815

HOUSING FINANCE PROGRAM 2016

Catatan:
 Pagu tersebut berdasarkan pagu Nota Keuangan.

CURRENT HOUSING FINANCE SYSTEM
AND HOUSING FINANCE SUBSIDIES IN INDONESIA


Level Playing Field



Bolstering HFS with LF
Increasing Participation of
Primary Mortgage Lenders
Integrating HFS to CM
Establishing Housing
Provident Fund (Tapera)












Liquidity Facility
on Budget (Financing)
Subsidy toward People
Revive and Develop
Subsidy for Micro HF
Reactivate Subsidy for DP
Suspend Subsidy for
Construction Credit
Interest Rate Subsidy
on Budget (Spending)

2015 - Current

HOUSING FINANCE SYSTEM DEVELOPMENT
Establishing the Liquidity Facility for mortgage origination to invite
more market participants and promote risk-based mortgages
subsidized mortgages business, resulting in:
 Promoting Level Playing Field
 Re-establshing Special Circuit in HFS
 Integrating Primary Mortgage Market with Capital Market thru
further establishing the SMF
 Elaborating Housing Provident Fund to HFS

HOUSING FINANCE SUBSIDIES
Housing Finance Subsidy is intended to broaden banks participation
in serving down market, by:
 Inviting partipating banks to originate affordable mortgage
(5%/year) in which the required principal comes partly from the
banks and mostly from the government (10% vs 90%)
 Promoting housing affordability thru interest rate subsidy over the
mortgages term; target group pays subsidized mortgage with rates
much lower than market rates (12% vs 5%) Government pays
the difference
 Provide down payment subsidy to make mortgage accesible by
the target group.

DEVELOPERS

INFORMAL
FINANCE
INSTITUTIONS

DEVELOPERS

INSTITUTIONAL INVESTORS

• BANK BTN
• OTHER BANKS

Cash

• PENSION FUNDS
• INSURANCE COMPANIES

Bonds

Cash

Cash

Bonds

Bonds

Mortgage Assets
Cash

PT. SARANA
MULTIGRYA FINANSIAL
(SMF)

CAPITAL MARKET

HOUSING FINANCE SYSTEM

• RMBS (EBA-SP)
• BONDS

Deposits & Loan
Repayments

Cash

Pension &
Interest

Bonds

PARTICIPATING
BANKS

Taxes

Commercial Loans

EMPLOYERS

BLU PPDPP
Special
Circuit

COMMERCIAL
BANKS

Mortgage Assets
Cash

Commercial Loans

Savings and Loan
Repayments

Wages

GOVERNMENT

• HIGH INCOME GROUP
• MEDIUM INCOME GROUP
• LOW INCOME GROUP

Savings &
Insurance
Premium

Subsidized Housing Loans

Commercial Loans

Savings and Loan Repayments

Loans

• MEDIUM UNIT
• LUXURY UNIT

HOUSEHOLDS

Taxes

Savings & Loan Repayments

Loan Repayments

Construction Loans

• RIT
• RSH

THE IMPACTS OF GOVERNMENT
HOUSING FINANCE POLICIES AND PROGRAMS

 ON HOUSING FINANCE SYSTEM
 ON GOVERNMENT FISCAL

DEVELOPERS

INFORMAL
FINANCE
INSTITUTIONS

DEVELOPERS

• BANK BTN
• OTHER BANKS

INSTITUTIONAL INVESTORS
Cash

• PENSION FUNDS
• INSURANCE COMPANIES

Bonds

Cash

Cash

Bonds

Bonds

Mortgage Assets
Cash

PRIMARY HOUSING FINANCE MARKET:
 SEGMENTED
 PARTIALLY DETACHED FROM THE
CAPITAL MARKET

PT. SARANA
MULTIGRYA FINANSIAL
(SMF)

CAPITAL MARKET
• RMBS (EBA-SP)
• BONDS

Deposits & Loan
Repayments

Cash

Pension &
Interest

Bonds

PARTICIPATING
BANKS

Taxes

Commercial Loans

EMPLOYERS

BLU PPDPP
Special
Circuit

COMMERCIAL
BANKS

Mortgage Assets
Cash

Commercial Loans

Savings and Loan
Repayments

Wages

GOVERNMENT

• HIGH INCOME GROUP
• MEDIUM INCOME GROUP
• LOW INCOME GROUP

Savings &
Insurance
Premium

Subsidized Housing Loans

Commercial Loans

Savings and Loan Repayments

Loans

• MEDIUM UNIT
• LUXURY UNIT

HOUSEHOLDS

Taxes

Savings & Loan Repayments

Loan Repayments

Construction Loans

• RIT
• RSH

PEMBIAYAAN PERUMAHAN
KARAKTERISTIK
SISTEM PEMBIAYAN PERUMAHAN
SPECIAL CIRCUIT

o SPECIAL CIRCUIT ADALAH SUATU MEKANISME MOBILISASI DANA MELALUI

o

o

LEMBAGA ATAU INSTRUMEN PEMBIAYAAN YANG DILENGKAPI DENGAN
INSENTIF DAN PENGENDALIAN YANG DIOPERASIKAN, BAIK SECARA
LANGSUNG ATAUPUN TIDAK LANGSUNG, OLEH PEMERINTAH.
DI INDONESIA DIJUMPAI PADA USAHA PEMERINTAH UNTUK MEMOBILISASI
DANA BAGI KPR PROGRAM LEWAT FASILITAS LIKUIDITAS PEMBIAYAAN
(FLPP). DALAM KONTEKS INI, PEMERINTAH MENYEDIAKAN SEBAGIAN
POKOK PINJAMAN KEPADA BANK PELAKSANA KPR PROGRAM (BTN DAN
BANK LAINNYA) MELALUI BLU PPDPP. INSENTIF DIBERIKAN BERUPA DANA
MURAH FLPP. PEMERINTAH MELAKUKAN HAL TERSEBUT AGAR MASYARAKAT
BERPENDAPATAN RENDAH DAPAT MEMILIKI RUMAH LAYAK HUNI DAN
TERJANGKAU.
SPECIAL CIRCUIT DI NEGARA LAIN :
 JERMAN: BAUSPARKASEN (SAVING-FOR-BUILDING)
 INGGRIS: THE BUILDING SOCIETES
 AMERIKA SERIKAT: SAVING AND LOAN ASSOCIATIONS

PEMBIAYAAN PERUMAHAN
KARAKTERISTIK
SISTEM PEMBIAYAN PERUMAHAN
PASAR YANG TERSEGMENTASI
 DENGAN MEMPROMOSIKAN PINJAMAN LUNAK MELALUI BANK TERTENTU,
PEMERINTAH TELAH SECARA SADAR MENCIPTAKAN SEGMENTASI DALAM
SISTEM PEMBIAYAAN PERUMAHAN.
 BENTUK SEGMENTASI DAPAT DILIHAT DARI FAKTA BAHWA KELOMPOK
MASYARAKAT BERPENDAPATAN RENDAH DAN MENENGAH DILAYANI OLEH
BANK BTN DAN BANK PELAKSANA LAINNYA, SEDANGKAN KELOMPOK
MASYARAKAT BERPENDAPATAN TINGGI DILAYANI OLEH BANK KOMERSIAL.
PASAR YANG TERISOLASI
 LEBIH JAUH LAGI, TERLEPAS DARI PESATNYA PERKEMBANGAN PASAR MODAL
DI INDONESIA, SPP YANG SEKARANG BEROPERASI MASIH BELUM
SEPENUHNYA TERHUBUNG DENGAN PASAR MODAL. HAL INI MERUPAKAN
TANTANGAN DALAM KETERSEDIAAN DANA “MURAH” JANGKA PANJANG YANG
DIBUTUHKAN OLEH PEMBIAYAAN PRIMER PERUMAHAN.

CAPITAL
MARKET

APBN

BANK

BLU
PPDPP

Portion=10%
Rate= X%

Portion= 90%
Rate= 0,3%

FRM

Blended
Rate=5%

MBR
Repayment

CREATION OF FISCAL BURDEN
ON FLPP MORTGAGE PROGRAM

FISCAL
BURDEN

CAPITAL
MARKET

APBN

BLU
PPDPP

BANK
Portion= 100%
Rate= Y%

FRM

Portion= 0%

RATE= 5%
SSB
n= Tenor

MBR

FISCAL
BURDEN

Repayment

CREATION OF FISCAL BURDEN
ON INTEREST RATE SUBSIDY MORTGAGE PROGRAM

CAPITAL
MARKET

PMN

APBN

SMF

BANK

BLU
PPDPP

Rate=