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Govt to issue bonds for 3 million homes program, Sri Mulyani says
The Finance Ministry has announced a new housing bond to help finance the government's 3 million affordable homes program as a "modification" of the FLPP mortgage facility launched in 2021.
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Finance Minister Sri Mulyani Indrawati (center left) and Housing and Settlements Minister Maruarar Sirait (center right) hold a joint press conference at the Finance Ministry in Central Jakarta on Feb. 21, 2025, along with (from left) Deputy Finance Minister Suahasil Nazara, Bank Indonesia Governor Perry Warjiyo, House Commission XI chairman Mukhamad Misbakhun and State-Owned Enterprises (SOEs) Deputy Minister Dony Oskaria. (TJP/Ni Made Tasyarani)
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inance Minister Sri Mulyani Indrawati has announced a plan to issue an affordable housing bond to help finance President Prabowo Subianto’s program to build 3 million homes, aiming to increase homeownership among low-income earners (MBR).
The funds raised from “the housing bonds will be allocated specially to finance housing for MBR. This is a modification of the FLPP mechanism that will be scaled up,” Sri Mulyani told a joint press conference on Thursday at the Finance Ministry.
The FLPP, or housing finance liquidity facility, is a home ownership credit (KPR) scheme for low-income earners launched in 2021 by the Public Works and Housing Ministry, now the Public Housing and Settlements Ministry, and state-owned banks, according to Antara.
Under the new bond scheme, the government is seeking to expand the FLPP mortgage facility to reach more beneficiaries and achieve this year’s target of 220,000 housing units.
According to the Finance Ministry, the government has allocated Rp 18 trillion (US$1.1 billion) for the FLPP scheme and Rp 1.9 trillion in state capital injection for state-owned PT Sarana Multigriya Finansial (SMF) to offer fixed-rate second mortgages at 5 percent for a 20-year term.
Read also: Developers complain over lack of clarity in housing program
“We will continue to develop a variety of creative financing to [not only] maintain fiscal discipline in the state budget, but also remain responsive to and capable of supporting other sectors, not only housing,” the minister said.
