TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
BTN eyes mortgages for foreigners
Keep building: Laborers work on a housing development for middle-income consumers funded by Bank Tabungan Negara Tbk (BTN) in Serpong, South Tangerang, on Saturday
Change Size
K
span class="inline inline-center">Keep building: Laborers work on a housing development for middle-income consumers funded by Bank Tabungan Negara Tbk (BTN) in Serpong, South Tangerang, on Saturday. BTN retail funding and distribution director Sis Apik Wijayanto has announced a plan to provide mortgages to foreigners this year. (Antara/Audy Alwi)
Bank Tabungan Negara (BTN), the biggest mortgage provider in Indonesia, plans to launch a specialized mortgage product for foreigners this year, after the government relaxed regulations on foreigners owning property.
The state-owned bank will kick off a limited mortgage program for foreign clients looking to buy apartments. Currently, the bank is studying the loan requirements for serving foreign clients.
"We have the chance to provide mortgages for foreigners. We expect the product to be launched this year," BTN retail funding and distribution director Sis Apik Wijayanto told thejakartapost.com on Monday.
However, he added, BTN would apply a commercial rate for foreign mortgage holders, rather than the interest rate used for public housing loans (KPR). BTN currently charges a commercial rate of around 12 to 12.5 percent for loans with one-year maturity.
"We will charge a commercial rate for foreigners because the KPR rate is aimed at the middle-low segment," Sis explained.
BTN has focused on the middle-low segment for decades. Amid economic slowdown in 2015, the bank increased its net profit by 62 percent year-on-year (yoy) to Rp 1.85 trillion (US$138.2 million).
In the same period, the bank's disbursed loans rose 19.8 percent (yoy) to Rp 139 trillion; 89.9 percent were mortgages. (ags)(+)
