PT BANK TABUNGAN NEGARA (PERSERO) Jl. Gadjahmada No.1 Harmoni Jakarta Pusat, 10130 Indonesia
Page 1 Annex I: BEST PRACTICES REPORTING FORMAT
1. a) Name of the Best Practice : Affordable Housing for Middle to Lower Income Group In Indonesia b) City/Town : Nation Wide c) Country : Indonesia d) Region : Asia & Pacific e) Has this initiative been submitted previously? NO
2. Address of the Best Practice Name oI the Organization : PT Bank Tabungan Negara (Persero) Street : 1l. Gadjahmada No.1 Harmoni P.O. Box : -- City/Town : 1akarta Pusat Postal Code : 10130 Country : Indonesia Telephone number : +62216336789 Fax number : +62216346704 Email addresses : webadminbtn.co.id
3. Contact Person : Iqbal Latanro (Direktur Utama / CEO)
4. Type oI Organisation: Others, Commercial Banking
5. The Nominating Organisation (only iI diIIerent Irom above). ---
6. The Partners
Partner 1 a) Name oI Organisation : PT CAHAYA BUMI PRATAMA b) Address oI the Organisation : 1l. Industri Raya Cikarang No.2 Cikarang Utara, 1awa Barat, Indonesia Postal Code : 17530 Telephone : +622170219902-03 c) Contact Person : H. DASUKI RAHMAN d) Type oI Organisation : Others, Developer e) Type oI Support : Financial Support
Partner 2 a) Name oI Organisation : PT. PERSADA 1AYA ARTHA b) Address oI the Organisation : 1l. Mandar XIX Blok DF6 No.7 Bintaro, 1akarta Selatan, Indonesia Telephone : +62217376568, +622159450666 Facsimile : +62217372888 c) Contact Person : IR. HARI1ONO HINDRAD1A1A / TOMI / NANA d) Type oI Organisation : Others, Developer e) Type oI Support : Financial Support
Page 2 Partner 3 a) Name oI Organisation : PT KARYA GRAHA CEMERLANG b) Address oI the Organisation : 1l. Tanjung Duren Selatan No.1 Gedung Tomang Tol Lantai 2 1akarta Barat, Indonesia Telephone : +62215636913 / +622156942191 c) Contact Person : ERNA d) Type oI Organisation : Others, Developer e) Type oI Support : Financial Support
Partner 4 a) Name oI Organisation : PT ISPI PRATAMA LESTARI PERKASA b) Address oI the Organisation : 1l. Boulevard Artha Gading Blok C15-16 1akarta Utara Telephone : +62214527777 c) Contact Person : REMMY KOHAR d) Type oI Organisation : Others, Developer e) Type oI Support : Financial Support
Partner 5 a) Name oI Organisation : PT BEKASI ASRI PEMULA b) Address oI the Organisation : 1l. Duren Tiga No.18 1akarta Selatan Telephone : +62217975955 c) Contact Person : AGUSTINUS ATMADI d) Type oI Organisation : Others, Developer e) Type oI Support : Financial Support
7. Financial Profile (in million $) No Partner Year 2004 Year 2005 Year 2006 Year 2007 TOTAL 1 PT Cahaya Bumi Pratama 33.71% 6.01 2 Persada Jaya Artha, PT 42.62% 48.39% 39.29% 15.99 3 Karya Graha Cemerlang, PT 27.74% 13.04% 4.78 4 spi Pratamalestari Perkasa, PT 43.14% 23.86% 13.96% 9.36 5 Bekasi Asri Pemula, PT 100% 14.24% 4.92 TOTAL 3.35 11.02 8.85 17.82 41 Note: USD 1 approx. to IDR 9200
8. Category of the Best Practice:
Housing O Affordable housing production O Homelessness O Access to housing finance and improvement O Slum and settlement upgrading O onstruction industry O Building materials and construction technology O 6ual access to housing resources and ownership O Rental housing O By-laws and standards
Page 3 Land Use Management O and use planning O Geographical inIormation systems O Development incentives O Open space conservation O and development O Urban/suburban renewal O state management O Equal rights to ownership and inheritance (especially by women)
Housing and Human Rights O Implementation oI the right to adequate housing O Prevention oI Iorced eviction O Security oI tenure O Secure tenancy O Provision oI public inIrastructure Ior adequate housing O ousing accessibility O Housing habitability and cultural adequacy O ousing affordability O Equal rights to ownership and inheritance (by women)
9. Level of Activity Select one oI the Iollowing that best describes the usual level oI activity:
O Global O Regional (international) O ational O Provincial/State O etropolitan O City/Town O Neighbourhood O 'illage O International
10. Eco-System Select the eco-system in which your initiative usually operates: O Arid/Semi-Arid O Coastal O Continental O High Plateau O Island O ountain O River Basin O %ropical/Sub-%ropical
11. Summary
n 1974, ndonesian government launched its residential development plan. n order to support its policy, as State Owned orporations, Bank %abungan egara (or Bank B% was appointed as residential funding institution for middle-lower income people. Based on the decree from Minister of Financial home ownership loan was launched. Since that day, Bank B% provide subsidized home ownership loan for all ndonesian middle lower income community and also middle up home ownership. At present day Bank B% has formulated main objective to give outstanding services in housing finance and its related industry, and also providing other products and banking services. ome loan becoming the core business of Bank B%, by the end of 2 it's reached by 91" of oan portfolio, and the rest are located as different types of loan. By the end of 27 Bank B% have been financing subsidized home loan more than 1.939.537 units (Retail customer and disbursing for about Rp.2.78,48 million (e6uals to USD 2.248 million.
Page 4 12. Key Dates
%here are no particular dates for such main mission to be conducted. n order to conduct all corporate objection and initiatives, the home loan was disbursed all the time during office hours. Any customer may come to the Branch Office to consult with the customer service concerning their needs about housing finance at any time. %he customer may also come to our partners (housing developer who provide the housing project. Our partners will direct them to Bank %abungan egara branch office and give the customer with supported document or information that may needed in home loan application documentation. But the key dates for national housing movement started since O 1974 when the government assigned Bank as residential funding institution for middle-lower income people O 27 When the Bank initiates the 27 Annual orporate planning and develop Strategic orporate Planning 28-212.
13. Narrative
SITUATION BEFORE THE INITIATIVE BEGAN
Prior to 1974, there was no home loan for ndonesian people. ndonesian people who wish to build a residential house, must take consumption loan from the bank or saving some money. %here was no special loan addressed for home ownership even a subsidized credit scheme/home loan for middle to lower income group. %here was also no housing/property developers established to provide affordable housing project. Only people who have a good financial condition can build an affordable house.
ESTABLISHMENT OF PRIORITIES
Based on the year 27 Bank %abungan egara orporate Planning, with regard to corporate main objections in housing loan, the top list priorities formulated need to be conducted as follows: O ew credit line Rp.7.43, billion. O ntegrate marketing program campaign to improve prospect customer awareness towards Bank %abungan egara existing as a Bank who serves the customer with the needs for housing by applying one stop banking strategy in housing program. O mproving the loan delivery service processes. O mproving human resources 6uality in loan services delivery. O mproving the competitive advantage of the loan product line. O mproving loan documentation administration.
Page 5 FORMULATION OF OB1ECTIVES AND STRATEGIES
Based on the year 27 orporate Planning the management has formulated the main objectives for loan activities as follows: O mproving loan services O Maintain the loan 6uality O valuating and develop the line of loan product O Promoting the loan products
Based on the Bank %abungan egara 28-212 orporate Planning, there are five main strategies formulated by the Management as follows: O %o give outstanding services in housing finance and its related industry, consumption loan, and Small and Medium enterprise O mproving competitive advantage by product development innovation, services and strategic network based on ultimate technology. O Develop a 6uality human capital, a professional and with high integrity O onducting banking management based on prudential banking principle and good orporate Covernance to improve shareholder value O orporate social responsibility for the rest of people and surrounding environment.
MOBILISATION OF RESOURCES
n order to support corporate operation and to achieve financial objective while still providing subsidized home loan for middle to lower income people, Bank %abungan egara continue to raise fund surplus and exploring all possibilities to mobilize low cost fresh fund resources as follows: O Developing low cost retail product feature reating a new product feature can be very useful to preserve the customer retention. %his is very important and become one factor to keep the customer loyalty. O ow cost fund surplus ow cost fund surplus is very important in order to keep the cost loan able fund low O mitting A new Obligation ew Obligation emission very useful to keep the corporate operation and financial leverage stays on its track, while the other type of retail product must be maintained carefully O orporate Privatization Privatization is a way to leverage Bank %abungan egara its capability to disburse home loan and getting a fresh fund to support the corporate operation. O Mortgage Securitization Mortgage Securitization will provide a fresh fund through intensive assets turn over.
%he Covernment as the subsidy provider for healthy and simple housing (RS also encourages all of Banking/on Bank institution in ndonesia to serve RS
Page 6 loan disbursement. %he Covernment negotiates with %he entral Bank to create incentive for banking institution who serves RS loan disbursement for Middle to ower ncome Croup.
PROCESS
Bank B% corporate objection is to give outstanding services in housing finance and its related industry and also providing other products and banking services. n parallel, Bank B% must support the ndonesian Covernment in ational ousing Policy to Provide Subsidized oan for Middle to lower ncome people e.g. Cerakan asional Pembangunan Sejuta Rumah (Developing a million affordable house ational Movement and developing rental and owned low cost apartment. %he Covernment Policy seems to be not successfully implemented because the national movement did not get fully supported by ade6uate national budget. ven %hough Bank B% keeps on trying to help the ndonesia Covernment by raising a new credit line for middle to lower income group.
Bank B% had made some financial projection for five years to come in order to meets the needs for affordable housing. Bank B% has initiate an option needs to be done in order to meets such need for affordable housing through Privatization and Mortgage Securitization. An ndependent consultant also invited to do some study to review and to develop visible options for Bank B% with regards to financial projection result. %he privatization through nitial Public Offering right now is waiting for the government approval, meanwhile the mortgage securitization will be launched as soon as all supporting regulation clearly set up. Privatization and Mortgage Securitization will leverage Bank B% financial capability to provide low cost fresh fund and will make the home loan disbursement through the Bank's partner (ousing Developer more affordable.
Another problem for Bank B% to support the outlet expansion is limited amount of human resources. ew employee need to be recruited to fill the position on a new outlet. %his problem gradually alleviated, and the outlet opening launched as scheduled as soon as the Bank ndonesia granted the outlet opening licensed. nternal resources of low cost fresh fund are limited. %o deal with this problem Bank B% continue to improve its marketing campaign and creating a new product feature to preserve the customer loyalty.
Page 7
ealthy and Simple ousing (RS oan Disbursement Flow hart
%he flow chart shows how Affordable housing delivered to Middle to ower ncome Croups. Bank %abungan egara disburse construction loan to ousing developer. ousing developer build the housing project. %he customers buy the house with ousing loan facilities from Bank %abungan egara. %he Covernment plays role as the ational housing program regulator and providing an interest subsidy.
Bank B% Partner/ Developer iddle to ower Income Customer Government ( Regulator & Interest subsidy )provider RSH Housing Project
Bank B% is a market leader in ousing oan in ndonesia. %he table above shown Bank %abungan egara market share in 22 - 27 periods. At the end of year 27, Bank B% had been disbursed Rp. 9.95 million ommercials ousing oan and Rp.1.847 million subsidized ousing oan for Middle to ower ncome Croup (Unaudited, Market share for total reach about 18.97". Bank %abungan egara manages to keep the on Performing oan ratio below 5". %he P Ratio for 27 reaches 3.88" (Unaudited.
oan Disbursement Achievement in more detail can be seen on the table attached to this arrative Formatting Report. By the end of 27 Bank %abungan egara disburse not less than 1.939.537 unit (Retail customer and disbursing for about Rp.2.78,48 million (e6uals to USD 2.248 million.
SUSTAINABILITY
A critical point about the affordable housing program in ndonesia is limitation of low cost fresh fund. %here are some ways to minimize the limitation.
a. %his kind of great work has been established since 1974. %he Covernment ousing Agency realize that Bank %abungan egara resources is limited and realize that must be way out to support government policy provide affordable housing for all ndonesian people. n 24 %he Covernment ousing Department initiate Memorandum of Understanding with 33 Banking nstitution in ndonesia to distribute or disburse KPR RS (home mortgage for affordable housing for Middle to ower ncome Croup with nterest Rate subsidy mechanism.
%he table below shows the target and realization KPR RS disbursement in 2 as the MOU result.
Page 9 aIam Jutaan Rupiah, kecuaIi unit No. Bank Name TARET AdditionaI Unit share (%) Loan 1 BTN 100,000 83,273 97.21 2,735,093 MOU 2 BTN SYARIAH 200 195 0.23 5,279 MOU 3 BNI 2,906 621 0.72 2,321 MOU 4 BRI 3,000 107 0.12 343 MOU 5 BANK BUMI PUTERA 0 8 0.01 40 MOU 6 BANK PERSYARIKATAN 2,000 0 0.00 0 MOU 7 BANK KESE1AHTERAAN EKONOMI 300 0.00 MOU 8 BANK BUKOPIN 1,000 0.00 MOU 9 BANK DANAMON 4,500 0.00 MOU 10 BMT MARDLATILLAH, MA1U 1AYA, AN NA1AH 400 49 0.06 MOU 11 BANK SYARIAH MANDIRI 200 0.00 MOU 12 BPD NANGGRO ACEH D 1,500 0.00 MOU 13 BPD SUMUT 1,663 0.00 MOU 14 BPD SUMSEL 400 94 0.11 226 MOU 15 BPD RIAU 725 0.00 MOU 16 BPD 1AMBI 500 0.00 MOU 17 BPD BENGKULU 450 0.00 MOU 18 BPD SUMBAR (BANK NAGARI) 1,200 0.00 MOU 19 BPD LAMPUNG 0.00 MOU 20 BPD DKI 1akarta 1,500 114 0.13 442 MOU 21 BPD 1ABAR 2,900 48 0.06 240 MOU 22 BPD 1ATENG 350 20 0.02 100 MOU 23 BPD DIY 64 10 0.01 50 MOU 24 BPD 1ATIM 2,500 0.00 MOU 25 BPD KALSEL 1,000 152 0.18 551 MOU 26 BPD KALTIM 2,900 739 0.86 3,956 MOU 27 BPD KALBAR 500 112 0.13 305 MOU 28 BPD KALTENG 100 0.00 MOU 29 BPD SULAWESI TENGGARA 3,000 0.00 MOU 30 BPD SULAWESI TENGAH 170 0.00 MOU 31 BPD SULAWESI SELATAN 750 68 0.08 213 MOU 32 BPD NTB 120 51 0.06 191 MOU 33 BPD NTT, MALUKU, PAPUA 3,750 0.00 MOU T O T A L 140,548 85,661 100.00 2,749,348 ReaIized KPR 2006 RSH MOU MEMBER
As result many of ndonesia people especially those who live as middle to lower income group can take benefit from the government policy in affordable housing program
b. Bank %abungan egara Privatization Privatization is a way to leverage Bank %abungan egara its capability to disburse home loan, and getting a fresh fund to support the corporate operation. But this is has not been done yet even though its get fully supported by the ndonesian ouse Representative.
LESSONS LEARNED
O n order to fulfil the needs of affordable housing for middle to lower income people an ade6uate low cost fresh fund need to be mobilized. %he Covernment and the private sector should have to work together to create a conducive economic condition where as the low cost fresh fund mobilization will prevail intensively. ow cost Fresh Fund can be mobilized easily through stock market. ong term government obligation can be used as subsidized home loan resources. %he mortgage securitization will receive fresh fund if supporting regulation was set up already.
O ousing/property market should be deregulated by government to minimize the housing demand gap. %he government should also give the incentive for subsidized home loan developer. Unnecessary regulations sometimes discourage developer to develop a housing project, and this situation will lead to higher price/unit of the house.
Page 10
O A Creat support for Bank %abungan egara for privatization to provide commercial and subsidized home loan. ndonesian ouse representative fully support the government and the Bank %abungan egara management policy to conduct the privatization via initial public offering. nitial Public offering will leverage the Bank %abungan egara loan disbursement capability. %he higher amount loan would be disbursed the greater amount of middle to lower income people will be served.
O Bank %abungan egara as state owned enterprise, with developer as partner and Covernment Agency have worked together to provide affordable housing for middle to lower income groups. ven though the lack of supply Affordable ousing still hard to meet the housing demands. All of support still needed to mobilize all resources to provide affordable housing for middle to lower income groups.
TRANSFERSABILITY
Bank %abungan egara as state owned enterprise, with developer as partner and Covernment Agency have worked together to provide affordable housing for middle to lower income groups. ven though there still a lot of lack of Affordable ousing market supply it is still hard to meet the housing demands. We still need a big support to mobilize all resources to provide affordable housing for middle to lower income groups.
%his kind of great work has been established since 1974. %he Covernment ousing Agency realize that Bank %abungan egara resources is limited and realize that must be way out to support government policy provide affordable housing for all ndonesian people. n 24 %he Covernment ousing Department initiate Memorandum of Understanding with 33 Banking nstitution in ndonesia to distribute or disburse KPR RS (affordable ousing for Middle to ower ncome Croup with nterest Rate subsidy mechanism.
RELATED POLICY/IES OR LEGISLATION
%his practice had been getting fully supported from the Covernment ousing Department and ndonesian ouse of representative. Recent government policy on ational affordable ousing program is:
a. Ministry of ousing Regulation o. 5/PRM/M/27 regulate subsidy facility for Middle to lower income group who wish to build their own house to get support from subsidy housing loan from the bank institution. b. Ministry of ousing Regulation o. /PRM/M/27 regulate subsidy facility for Middle to lower income group who wish to build their own house to get support from subsidy housing loan with syaria institution principle. c. Ministry of Finance Regulation o. 3/PMK.3/27 regulate about value added tax which exclude on purchasing RS below Rp. 49 milion.
Page 11
Bank %abungan egara had been fully support by ndonesian ouse of representative to do the privatization option to leverage Bank %abungan egara loan disbursement capability to provide affordable housing loan for middle to lower income group.
14. References
Title oI Article: Source (include author, publication title, volume/number, date, and page number(s) :
1. InIobank agazine (InIobank, 'angkah Mantap Bank B% dengan Kendali Manajemen Baru, No.347, Februari 2008, Page 34-36). 2. InIobank agazine (InIobank, '6bal atanro: B% %idak Bisa agi idup di Menara Cading, InIobank No.347, Februari 2008, Page 34-36). 3. Berita Bank BTN (Bank BTN, website www.btn.co.id,Pemohon Kredit Rusunami Antri di B%, Bank BTN Website, arch, 13, 2008). 4. Berita Bank BTN (Bank BTN, website www.btn.co.id, Bank nggan Bangun Perumahan Rakyat?", Bank BTN Website, January , 28, 2008). 5. Berita Bank BTN (Bank BTN, website www.btn.co.id, KPR B% Siap Bersaing, Bank BTN Website, January , 04, 2008). 6. Berita Bank BTN (Bank BTN, website www.btn.co.id, Fokus Pembiayaan Perumahan, Bank BTN Website, January , 02, 2008). 7. Berita Bank BTN (Bank BTN, website www.btn.co.id, Segera %erbitkan Oblgasi Rp.1 %riliun, Bank BTN Website, January , 02, 2008). 8. Banjarmasin Post (Banjarmasin Post, website www.banjarmasinpost.co.id, 'Subsidi RS jadi 8 miliar, September 06, 2007).
Description of Articles
1. InIobank agazine (InIobank, 'Bank B% onfident Step ontrolled by ew Management, No.347, February 2008, Page 34-36)
Bank BTN role which become dominant Iactor in helping the Indonesia government providing the need Ior housing Ior Indonesia people has made Bank BTN existence can not be put aside. Bank BTN perIormance getting better day by day, Iully service all oI the Indonesian people to have their own home. With its new Board oI director has made Bank BTN contribution in home owner Iinancing can not be replace by another institution. There are some Bank BTN conIident steps in providing loan housing as Iollow: Improving corporate perIormance arket leader in loan housing Improving service quality Generate a new outlet Corporate business development Supporting Indonesian government national housing program
Page 12 2. InIobank agazine (InIobank, 6bal atanro : B% an not live in vory %ower Anymore", InIobank No.347, February 2008, Page 34-36)
Bank BTN has been playing a big role in supporting aIIordable housing Ior all oI Indonesian people through out the country and about 97 housing program Ior middle to lower income group Iinanced by Bank BTN. But now Bank BTN has to change. The change must support Bank BTN perIormance in the Iuture. Furthermore loan growth target in 2008 must be raised by 26. The change must be done as quickly as possible, Iail to do so, Bank BTN will surely out oI business. The Bank BTN new CEO, Iqbal atanro said Bank BTN Can not live in Ivory Tower anymore. Bank BTN wants to change the paradigm. To achieve the main corporate mission, Bank BTN corporate image will have to be transIorming Iorm Bureaucratic to business environment.
3. Bank BTN News (Bank BTN, website www.btn.co.id, Rusunami Applicator are Queue n ine, Bank BTN Website, arch, 13, 2008)
Rusunami Applicators are Queue in ine. Bank BTN loan director, Purwadi said that is up Ior now there has been 4000 unit application processed, meanwhile its still 1600- 1700 unit to go Irom Cengkareng, odern land Tangerang, Cawang and 1800 unit to go Irom up coming rusunami project. Purwadi also mention the loan that had been disbursed Rp. 800 billion Ior Rusunami and RSH Irom the target Rp.10.043 trillion.
4. Bank BTN News (Bank BTN, website www.btn.co.id, %he Bank nstitution Reluctant to Support Affordable ousing Program?", Bank BTN Website, January , 28, 2008)
Recently the Banks Institutions in Indonesia tends to reIuse to disburse a micro loan Ior small business enterprise. Commercials banking presume disbursing a loan Ior small business enterprise has a higher risk than a big commercial corporation. The same thing happens with aIIordable housing loan Ior middle to lower income group. The commercial bank presume the loan Ior middle to lower income group to get an aIIordable housing loan has a lot higher risk than iI its disbursed Ior upper income group to get commercial housing loan. Among 132 Commercial Bank in Indonesia, practically only Bank BTN constantly disburse a subsidy housing loan Ior middle to lower income group. Bank BTN has a capital limitation. The demand Ior aIIordable housing is nearly 600.000 units/annum, but Bank BTN can only support subsidy loan housing Ior about 100.000 unit/annum. According to Ryan Kiryanto, in order to stimulate all oI the commercial bank to support Indonesia government in housing policy is to reduce the risk level oI subsidy housing loan by reducing ATR rate by 15 Irom 40 to 25. This option will enable all oI the Commercial Bank to have a higher lending capability to disburse the loan especially in subsidy housing loan.
5. Bank BTN News (Bank BTN, website www.btn.co.id, KPR B% ready to compete, Bank BTN Website, January , 04, 2008)
Bank BTN management realize that the business competition between Bank Institutions is remain tough and getting harder everyday, especially in aIIordable loan housing. In order to deal with other competitor, as a breakthrough Bank BTN had launched KPR platinum with two alternative loan interest rate instalment option. First option is Iix instalment with interest rate 10.75 just Ior one year instalment and 10.95 interest
Page 13 rate Ior the Iirst Iive year instalment. KPR Platinum is intended targeted Ior lower to upper income group with loan value above Rp.150 million.
6. Bank BTN News (Bank BTN, website www.btn.co.id, Focusing On oan ousing (Mortgage", Bank BTN Website, January, 02, 2008).
The Ultimate challenge Ior the new Bank BTN`s Board OI Director Ior the near Iuture is remain tough because Bank BTN have to conduct its main mission which Iocusing on oan Housing (mortgage) Ior middle to lower income people.
Bank BTN Iormer CEO, Kodradi said, economically speaking, the Iuture challenge is remain tough especially when Bank BTN engage in Indonesian Banking architecture Iramework concerning the single presence policy issue held by Bank Indonesia. Politically speaking, whether the challenge is remain tough or less is depend on Indonesian government political will as the owner. Should the government still concern with its housing program Ior the sake oI Indonesia people, Bank BTN will still survive.
AIter all have been through with all oI economic turbulence in late 1999, Bank BTN still survive and continuing providing aIIordable housing loan Ior middle to lower income group in Indonesia.
7. Bank BTN News (Bank BTN, website www.btn.co.id, Bank B% announce to launch Rp 1. %rillion Debts, Bank BTN Website, January, 02, 2008).
In 2008 Bank BTN initiate to make housing loan growth raised by 28 or about Rp.10.03 trillion higher than in 2007 which about Rp.8 trillion. In order to support that loan growth Bank BTN intend to issue Rp.1 trillion debts to anticipate previous debts that due Ior Rp. 800 billion in 2008. In Parallel, Bank BTN also had planned to launch privatization trough initial public oIIering (IPO) 30 oI its capital. Bank BTN new CEO, Iqbal atanro said that Bank BTN will stay Iocus on Housing loan Ior middle to lower income group and yet still continue to Iine tune the marketing campaign policy and loan pricing including the interest rate to keep Bank BTN competitive toward the main competitor.
8. Banjarmasin Post (Banjarmasin Post, website www.banjarmasinpost.co.id, 'ealthy Decent ousing Subsidy Become 8 Billion Rupiahs, September 06, 2007)
Bank BTN CEO Kodradi said that Bank BTN had lowered the loan interest rates which becoming 13.5/annum. The policy being taken as responded to Bank oI Indonesia policy that keep lowered the BI rate which stay on single digit level 8,25. He also mentions the bank institution business competition especially in housing loan gradually tougher recently. Customer purchasing power getting better and they want to take a bigger amount oI loan. To deal with this Bank BTN had launched KPR platinum with two alternative loan interest rate instalment options. First option is Iix instalment with interest rate 10.75 just Ior one year instalment and 10.95 interest rate Ior the Iirst Iive year instalment. KPR Platinum is intended targeted Ior lower to upper income group with loan value above Rp.150 million.