BCA Becomes First Private Bank to Launch Subsidized Mortgage Scheme Mirroring FLPP
Key Takeaways
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JAKARTA, Investortrust.id — PT Bank Central Asia Tbk, or BBCA, has announced plans to provide subsidized mortgages for low-income households under a scheme that mirrors the government’s Housing Finance Liquidity Facility.
The program, widely known as FLPP, is Indonesia’s flagship subsidized mortgage scheme for low-income families. The move was revealed by President Director Gregory Hendra Lembong during the National Housing Day ceremony at the Ministry of Housing and Settlement headquarters in Jakarta on Monday, Aug. 25, 2025.
He emphasized that BCA would finance the subsidy directly without state support.
“We will always support programs that help low-income families. BCA is ready to provide direct subsidies with the same treatment as FLPP—fixed interest, down payment, and 20-year loan tenure,” Lembong told reporters.
- President Commissioner BCA Jahja Setiaatmadja, President Director Gregory Hendra Lembong, and other executives attend the opening ceremony of BCA Expo 2025 at ICE BSD, Tangerang, on Friday, Aug. 22, 2025.
A Breakthrough in Housing Finance
Minister of Housing and Settlement Maruarar Sirait hailed the plan as a milestone. “This is the first time in Indonesia’s history that a private bank has voluntarily assumed the burden of subsidizing housing finance,” he said.
The initiative reflects growing private-sector involvement in a sector traditionally dominated by state-backed lenders. Sirait expressed hope that other banks would follow suit, noting that PT Bank Nationalnobu Tbk, or NOBU, and PT Bank Artha Graha Internasional Tbk, or INPC, had already signaled interest in participating.
- Minister of Housing and Settlement Maruarar Sirait with President Director of Sarana Multigriya Finansial Ananta Wiyogo at the Statistics Office in Jakarta on Tuesday, Aug. 26, 2025.
BP Tapera Pushes for Ecosystem-Based Housing
The Public Housing Savings Management Agency, or BP Tapera, has long encouraged wider participation in subsidized mortgage programs to accelerate distribution to eligible families. Commissioner Heru Pudyo Nugroho highlighted BCA’s potential role in expanding partnerships.
“BCA will be prioritized in projects that ensure a complete living ecosystem. The concept is one-stop living, with schools, markets, and healthcare facilities integrated within a single housing complex,” Heru explained.
He added that major developers could be recommended by former BCA President Director Jahja Setiaatmadja to allocate a portion of their projects to subsidized housing.
Expo 2025 and Mortgage Promotions
The announcement coincided with BCA Expo 2025, held from Aug. 22 to 24 at ICE BSD in Tangerang and running online until Sept. 30. The bank offered promotional mortgage rates starting at 1.65% effective per annum fixed for one year, with a 50% discount on provision fees.
Executive Vice President for Corporate Communication and Social Responsibility, Hera F Haryn, said the program aligned with both customer demand and government policy.
“Mortgage demand is highly dynamic. Lower rates encourage uptake, and we hope BCA Expo 2025 contributes to sustainable growth in the housing sector,” Hera said.
She added that BCA remained committed to supporting government initiatives, including FLPP-style subsidies, while maintaining prudent risk management.
Broader Impact and Role Model for Private Banks
Minister Sirait later described BCA’s decision as a potential role model for other private lenders. “The more participants in subsidized housing finance, the stronger the impact on the national housing agenda,” he said.
With demand for affordable housing still outpacing supply, the entry of Indonesia’s largest private bank signals a turning point in mobilizing private capital to address the housing deficit. If successful, the model could redefine the balance of public and private responsibility in one of Indonesia’s most pressing social needs.
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