PT Bank Rakyat Indonesia (Persero) Tbk (BRI) continues to play an active role in supporting the government’s 3 Million Homes Program.

As of mid-2025, the FLPP subsidized mortgage scheme accounts for 97% of BRI’s total subsidized home loan distribution.

FLPP Dominates BRI’s Subsidized Mortgage Portfolio

The FLPP program was designed by the government as a low-cost housing finance scheme distributed through financial institutions under BP Tapera. This initiative addresses the high national housing backlog.

By June 2025, BRI had distributed subsidized mortgages to 97,878 beneficiaries across Indonesia, reflecting an 18% increase from the previous year.

The total outstanding loans reached Rp13.35 trillion, up 19.51% year-on-year. The quality of BRI’s mortgage portfolio remains sound, with a Non-Performing Loan (NPL) ratio of 1.1%.

Low-Income Earners Gain Access Through Favorable FLPP Terms

The FLPP scheme targets individuals earning up to Rp14 million per month, with eligibility determined by regional zones and marital status.

It provides access to first-time home ownership through favorable financing terms, including a fixed interest rate of up to 5% and loan tenors of up to 20 years.

According to BRI Corporate Secretary Agustya Hendy Bernadi, the distribution of subsidized mortgages under FLPP reflects BRI’s commitment to expanding inclusive housing finance for Low-Income Communities (MBR).

Strategic Partnerships Extend Housing Access to Public and Informal Sectors

To enhance equitable access to FLPP financing, BRI has established strategic partnerships with various institutions.

In the public sector, this includes cooperation with the Ministry of Administrative and Bureaucratic Reform (PANRB), the National Civil Service Agency (BKN), the National Archives of Indonesia (ANRI), and the National Institute of Public Administration (LAN).

BRI has also extended housing finance to informal workers. One such collaboration involves PT Bluebird Tbk, which allows taxi drivers to obtain their first homes through the FLPP program.

“Through FLPP, BRI continues to promote inclusive and sustainable housing finance,” said Hendy.

Subsidized Housing Generates Broad Economic Impact

Hendy stated that the increase in subsidized home distribution not only expands access to affordable housing for MBR but also generates a broader economic impact.

“Its multiplier effect reaches sectors such as construction, building materials, labor services, logistics, and even MSMEs around residential areas,” he said.

PHOTO: FREEPIK

This article was created with AI assistance.