DIGIVESTASI - PT Bank Tabungan Negara Tbk (IDX: BBTN) welcomes the government's plan through the Ministry of Public Works and Public Housing (PUPR) to develop a one-time Home Ownership Credit (KPR) program with a term of up to 35 years. 

This program is considered as an answer to facilitate access to assets for millennials and generation Z. 
BBTN Senior Director Nixon LP Napitupulu supports the government's plan to implement the program. According to him, this project will make it easier for people who want to become owners to make installments. 

"Especially for millennials and generation Z, this program will be the answer to owning your own home as well as investing in the future," said Nixon in Jakarta, Monday (1/8). Similarly, BBTN Chief Economist Winang Budoyo also welcomed the proposed 35-year flat mortgage program. 

Winang believes this program will increase demand as customers will benefit from lower monthly payments. In terms of finance, Winang said the program must also be supported by programs that support the bank's financial delivery capabilities.

"We believe the tiered interest rate option will be beneficial for both customers and banks. Historically, customer capacity tends to increase over time," said Winang.  Winang explained that a tiered interest rate system means that after a certain period of time, interest rates can rise gradually. Winang proposed that the salary increase be carried out gradually over a period of 10 years. 

"Historically, we see that within 10 years, the economic conditions of mortgage customers have improved compared to when they first applied for a mortgage," said Winang. 

Meanwhile, the proposal for a 35-year mortgage project is still being reviewed by the Ministry of PUPR's Directorate of Public Works and Housing Infrastructure Financing (DJPI). This program is applied from the Japanese mortgage program which has been successful with the housing system. The 35-year mortgage plan is also a gradual step by the government towards zero backlog in 2045. In 2021, the backlog in Indonesia still reached 12.71 million units.