In a strategic bilateral move, PT Bank Tabungan Negara (Persero) Tbk (BTN) signed a partnership agreement with Qatar-based investment company AlQilaa International Group to develop one million housing units in Indonesia, with 100,000 units planned for the initial phase. The agreement was formalized in Doha, Qatar, on Tuesday, April 8, 2025.

Strategic Agreement Signed in Doha, Expanding Indonesia-Qatar Cooperation

Deputy Minister of Housing and Settlement Areas Fahri Hamzah confirmed that the agreement builds on a prior commitment signed by President Prabowo Subianto and Sheikh Abdulaziz bin Abdulrahman Al Thani—who represents the Kingdom of Qatar and chairs AlQilaa Group—in January 2025.

“We hope this agreement will move swiftly into the planning, design, and construction stages. BTN will support this initiative by offering housing ownership financing for Indonesian citizens,” Fahri said, extending his gratitude to the Indonesian Embassy in Qatar and other stakeholders.

Sheikh Abdulaziz acknowledged Indonesia’s cooperation and expressed confidence in furthering bilateral relations. “We hope this partnership will advance stronger ties between the two countries to support the welfare of the Indonesian people,” he stated.

BTN to Facilitate Homeownership Financing for Indonesian Citizens

BTN President Director Nixon LP Napitupulu emphasized the bank’s full commitment to Indonesia’s national housing program. “We have entered a strategic partnership with Qatar’s AlQilaa International Group, which will begin by constructing 100,000 housing units,” Nixon said.

BTN will act as the primary lender for housing ownership and construction financing. The scheme will offer both conventional and Sharia-based financing options, available to Indonesian citizens meeting specific eligibility criteria established jointly by BTN and AlQilaa, in compliance with existing laws and regulations.

USD 2 Billion Investment to Support Urban Vertical Housing Projects

The initial phase will prioritize the development of affordable vertical housing, such as subsidized apartments or flats, located in urban areas like Jakarta. The investment from AlQilaa will reach USD 2 billion, or approximately USD 20,000 per housing unit.

“This project is a concrete step toward ensuring access to decent and affordable housing for Indonesian families,” Nixon noted.

Partnership Aligned with Indonesia’s Three Million Homes Program

Nixon stressed that this initiative supports President Prabowo’s Three Million Homes program. “BTN believes that constructing 100,000 units in this phase is a tangible contribution toward achieving our national housing goals,” he added.

BTN anticipates the partnership will boost its financial performance, especially in subsidized mortgage disbursements, while simultaneously strengthening Indonesia’s housing finance market.

Initiative Aims to Reduce Housing Backlog and Spur Economic Growth

Nixon further explained that international investment is crucial to supporting the government’s housing agenda. The collaboration is expected to create jobs, stimulate the construction and banking sectors, and enhance Indonesia-Qatar economic ties.

“The project will make a significant contribution to national development goals and accelerate post-pandemic economic recovery,” Nixon said.

He also reiterated BTN’s role not only as a financier but also as a community partner, aiming to raise awareness about the long-term value of homeownership.

BTN, Indonesia’s fifth-largest bank by assets—with projected assets of IDR 500 trillion in 2025—holds a 39% share of the national mortgage market. Since 1976, the bank has disbursed over 5.6 million mortgages, with 2.2 million distributed in the last decade.

Founded in 2012, AlQilaa International Group is a Qatari conglomerate with business interests in real estate, trade, digital application development, and consulting. It maintains partnerships with prominent institutions in Qatar and globally.

The initial memorandum of understanding (MoU) was signed on January 8, 2025, in the presence of President Prabowo and Minister of Housing and Settlement Areas Maruarar Sirait. Sheikh Abdulaziz also delivered a message from His Highness Emir of Qatar Sheikh Tamim bin Hamad bin Khalifa Al Thani, reaffirming Qatar’s commitment to supporting Indonesia’s development across all sectors.

PHOTO: POINDONEWS

This article was created with AI assistance.