Erick Thohir Urges State Banks to Blacklist Rogue Developers
JAKARTA, Investortrust.id — Indonesia's Minister of State-Owned Enterprises Erick Thohir has called for stricter measures against dishonest real estate developers and notaries, urging state-owned banks to blacklist those who engage in fraudulent practices.
"I will summon all Himbara [state-owned banks] to ensure this database is shared among them. We need to prevent these bad actors from jumping from one institution to another. This has happened far too often," Erick stated during a press conference at the Ministry of State-Owned Enterprises in Jakarta on Tuesday, January 21, 2025.
Erick highlighted numerous cases where developers and notaries have caused significant losses to mortgage consumers. Many homeowners have reported delays in receiving property certificates even after completing their payments. In some instances, payments were made, but the homes were never built.
"These are people's hard-earned wages—40% of which are deducted to pay mortgages. But once they've completed payments, there's no certificate. Worse, the houses haven’t even been constructed. This is where the problem lies," Erick said.
BTN’s Commitment to Action
Nixon LP Napitupulu, president director of PT Bank Tabungan Negara (Persero) Tbk (BTN), expressed support for Erick's directive, stating that BTN has already terminated partnerships with several developers and notaries who have harmed customers.
"These individuals [developers and notaries] are blocked in our system. We no longer provide financing or collaborate with them. This is one way to protect the public," Nixon explained.
Nixon revealed that in 2019, approximately 120,000 homes financed through KPR lacked property certificates. As of now, 38,144 homes still face this issue, involving 4,000 developers. BTN has been actively working to reduce this figure to safeguard customer interests.
"The remaining cases involve 38,144 certificates tied to 4,000 housing projects, and we are committed to resolving them," Nixon added.