BTN Expands Subsidized Housing Market Through Strategic Partnerships

Targeting Specific Professional Groups

PT Bank Tabungan Negara (Persero) Tbk (BTN) is implementing a strategic expansion in Indonesia's subsidized housing market by targeting specific professional groups. The bank has identified Muhammadiyah teachers as a key target segment for its subsidized mortgage products. This initiative is part of BTN's broader strategy to accelerate the distribution of subsidized housing loans through partnerships with various institutions and organizations.

Strong Performance in FLPP Mortgage Distribution

BTN's efforts in the subsidized housing sector have yielded significant results. In 2025, the bank successfully distributed 182,952 FLPP (Fasilitas Likuiditas Pembiayaan Perumahan) mortgage units. This achievement solidifies BTN's dominant position in the subsidized housing loan market, with the bank maintaining approximately 70% market share. The total national distribution of FLPP mortgages reached 263,017 units worth Rp32.67 trillion by December 19, 2025, involving 39 banks, 22 property developer associations, and supported by 7,998 developers across 33 provinces and 401 regencies/cities.

Government Recognition and Support

BTN's achievements in subsidized housing have garnered recognition from high-ranking government officials. President Prabowo Subianto expressed appreciation for BTN's contributions to the government's housing program during a mass signing ceremony for 50,030 subsidized housing units on December 20, 2025. The President emphasized the importance of continued collaboration between the government and stakeholders to address the remaining housing needs of approximately 29 million Indonesians.

Innovative Housing Solutions

The mass signing ceremony was held at the Pondok Banten Indah (PBI) housing development, which offers a unique approach to subsidized housing. Developer PT Kawah Anugerah Property has incorporated modern features such as cluster concepts, European-style designs, and double walls for enhanced privacy. The development's strategic location near major roads and public facilities adds to its appeal. This innovative approach demonstrates the evolving nature of subsidized housing in Indonesia, combining affordability with modern living standards.

Market Impact and Future Prospects

BTN's strategic focus on specific professional groups like Muhammadiyah teachers represents a targeted approach to expanding subsidized housing coverage. By leveraging institutional partnerships, BTN aims to identify and serve potential homebuyers more effectively. This strategy not only supports the bank's business growth but also contributes to the government's housing initiatives. As the Indonesian housing market continues to evolve, BTN's proactive approach positions it well for future growth in the subsidized housing segment.