The Ministry of Housing and Settlement Areas (PKP) said the 3 million housing program is currently facing challenges related to home ownership certification.
Nixon Napitupulu, President Director of PT Bank Tabungan Negara Tbk (BBTN), admitted that the problem of rogue developers is real. He said that many mortgage customers have paid off installments for 15 or even 20 years, but their certificates are still problematic. According to him, problematic developers usually do not complete the construction of houses or provide certificates with negative status.
Currently, Bank Tabungan Negara (BTN) together with Erick Thohir, Minister of SOEs are trying to discipline problematic developers. Nixon also hopes for support from various parties so that the people who are victims can get certificates with the correct status.
Ramon Armando, BTN Corporate Secretary confirmed that the 120 thousand KPR with problematic certificates were customers of the bank. However, Ramon said the certificate problem was a situation in 2018.
Previously, BTN revealed that as many as 120 thousand housing units with a home ownership credit (KPR) scheme were still problematic due to unresolved certificates. This condition can have an impact on the principal balance of loans with a value of Rp3.3 trillion (US$201,9 million) from 38,144 debtors.
According to him, this problem is caused by several conditions. Like the problem highlighted by Ramon is the existence of obstacles from developers caused by certificates in the legal process until the developer company is dissolved or bankrupt.
Another problem is related to the existence of notaries who are not responsible for the completion of certificates. There is also the problem of certificates being lost or being in other banks and the problem of underhand sales.
“Regarding this problem, the Company has taken steps to resolve it, including improving business processes, so that the number of problematic certificates as of December 31, 2024 is 38,144 debtors,” said Ramon, on Thursday, February 6, 2025.
This year the company can target to complete as many as 15 thousand certificates. Furthermore, in 2026 the company targets to complete 13 thousand problematic certificates, then 7 thousand in 2027. BTN is also committed to completing problematic certificates in the next three years until 2028.
Meanwhile, mitigation steps to overcome the risks arising from mortgage certificate problems. Efforts made include the formation of a special task force to handle problematic developers and notaries, as well as establishing cooperation with the Ministry of Agrarian Affairs and Spatial Planning/National Land Agency (Kemen ATR/BPN) through a Memorandum of Understanding (MoU) to accelerate the completion of certificates.
In addition, the company also profiles certificate issues based on developer groups. Meanwhile, management applies a rating system that assesses developer performance based on sales volume, non-performing loan (NPL) levels and compliance in managing certificates.
System repair
Maruarar Sirait, Minister of Housing and Settlement Areas (PKP) said that he had discussed with developers and the Financial and Development Supervisory Agency (BPKP) regarding system improvements.
“I have had meetings with developers and also with BPKP. I have conveyed the President’s message. In the end, the people must be happy,” said Maruarar, on Sunday, February 9, 2025.
This discussion was held to prevent any problems in certificate ownership in the 3 million housing program currently being prepared by the government.
He said that President Prabowo Subianto’s direction was that the ultimate goal of the Home Ownership Credit (KPR) program was to make people feel satisfied. Maruarar also emphasized that Tapera and distributing banks should not cooperate with irresponsible developers.
President Prabowo was previously optimistic about the target of building 3 million houses per year during his administration. This program is a continuation of the Million Houses Program (PSR) initiated previously by Joko ‘Jokowi’ Widodo.
Maruarar is optimistic in facing this problem, that President Prabowo’s program will not be disrupted. So far, the distribution of subsidized KPR has reached 93,484 units. As many as 54,145 units are still in the construction process up to the credit agreement stage. Meanwhile, 39,399 units have been distributed through the Housing Financing Liquidity Facility (FLPP) KPR scheme and the Tapera agreement.
In detail, of the total 54,145 units processed, 10,232 units are under construction and 11,783 units are ready-to-occupy housing stock. A total of 23,419 units have received credit approval and 8,717 units have entered the credit agreement stage.
