PT Bank Rakyat Indonesia (BRI) continues to strengthen its role as the main distributor of subsidized mortgage loans (KPR Subsidi) to support the government’s Asta Cita program, which aims to improve public welfare by providing decent and affordable housing.

By the end of August 2025, BRI had disbursed subsidized mortgage loans to 107,244 beneficiaries across Indonesia, with a total outstanding loan amount of Rp14.65 trillion. Around 97% of these loans are from the Housing Financing Liquidity Facility (FLPP), which supports the government’s 3 Million Houses program to provide affordable housing financing for low-income communities (MBR).

Maintaining Loan Quality Through Careful Assessment

BRI’s President Director, Hery Gunardi, stated that the bank applies prudent principles in distributing subsidized mortgages. Every credit application undergoes a strict assessment process to ensure that potential borrowers meet all the required criteria.

“In granting credit, there is an assessment and conditions that must be fulfilled. Based on that, we also see the reality of who can or cannot be financed,” Gunardi explained.

This approach helps keep the quality of financing healthy, as reflected in BRI’s subsidized mortgage Non-Performing Loan (NPL) ratio, which remains well maintained.

Strong Liquidity Supports Sustainable Housing Financing

On the funding side, BRI ensures full readiness to support housing financing. In the second quarter of 2025, BRI’s liquidity was strong, with a Loan to Deposit Ratio (LDR) of 84.97%. This indicates sufficient liquidity to support sustainable growth.

Additionally, government liquidity support amounting to Rp55 trillion further strengthens BRI’s ability to distribute subsidized housing loans.

Addressing Challenges in Housing Financing

Hery Gunardi acknowledged that challenges remain, especially due to a backlog of around 10 million housing units in the lower-middle income segment. A common obstacle is the limited understanding among potential borrowers about the application procedures and access to financing.

“The key is socialization and making it easier for borrowers to apply and obtain financing,” he said.

Extensive Branch Network Enhances Access

BRI’s network of more than 7,000 branch offices across Indonesia enables the bank to accelerate the expansion of financing services to remote areas. This wide network helps the public and prospective borrowers to obtain information, apply for loans, and access banking services effectively.

“This advantage makes BRI a strategic partner of the government in accelerating the realization of the public housing program and meeting the need for decent housing for the community,” Gunardi concluded.

PHOTO: BRI

This article was created with AI assistance.