Taking advantage of digital platforms, BTN's strategy makes it easier for the younger generation to own a home

It is increasingly difficult for the younger generation to own a home due to the rate of increase in the minimum wage for work being far behind the increase in property prices. This big issue is homework for stakeholders to resolve because the backlog number is still relatively high.

According to the National Socio-Economic Survey (Susenas) of the Central Statistics Agency (BPS), figures backlog reaching 9,9 million units in 2023. This figure is considered a decrease from the previous year of 12,75 million units in 2020. Backlog is the amount of housing needed to meet unmet housing needs.

Furthermore, from the same source, the number of households that do not have access to adequate housing is still quite high, namely 26,9 million households in 2023, although this has decreased from 29,4 million in 2020.

Reducing non-subsidized KPR interest rates and extending the term of non-subsidized KPR from 20 years to 30 years could be a solution to overcome this problem. backlog housing area. This is the step taken by BTN as a bank that distributes home ownership credit (KPR) through the launch BTN KPR products Gaess for Millennials since 2018. This product is specifically for the younger generation in the non-subsidized KPR segment.

this product allows customers to pay credit interest for two years without having to pay a 0% down payment (DP). However, there are requirements that must be met, the debtor's age starts from 21-35 years, has a fixed income, interest rates start from 4,47% for two years, and tenors start from 20 years (KPA) to 30 years (KPR).

These advantages allow the younger generation to choose a payment plan that suits their financial capabilities.

"The average age of debtors who take out credit at Bank BTN is mostly from the millennial generation (21-30 years old) at 41%, then 30-40 years old (40%), and over 40 years old (19%). "This productive age will play an important role at BTN," said DRM Business Regional Office 3 PT Bank Tabungan Negara (Persero) Tbk. Carly Tambunan at a media gathering in Bali, last week (26/4).

Carly explained that Gaess' KPR application can be done via the official BTN Properti website. This site has three main features: marketplace for listing housing projects from developers who have collaborated with BTN throughout Indonesia; resources; and online mortgage applications.

In the marketplace feature, visitors can see listing stock units, price, developer profile, and 4D tour service. Meanwhile, the online KPR feature is integrated with the system e-loan BTN and dedicated BTN officers.

In the latest data as of August 2023, the BTN Properti website has been visited by around 30 million visitors, with more than 17 thousand mortgage applications. From the number of applications, the total credit channeled through BTN Properti is around IDR 1,3 trillion.

BTN has also collaborated with more than 7 thousand developer partners. Through this partnership, visitors can choose various types of residences to choose from, both as a place to live and for investment.

Even though house prices are climbing, based on the BTN report, commercial mortgages in 2021 will still increase by 39,92% to IDR 135,69 billion and the trend will continue to climb until 2023 reaching IDR 227,57 billion or up 24,12% yoy. Then as of the first quarter of 2024, BTN KPR distribution was recorded at IDR 61,56 billion.

Meanwhile, in March 2024, house prices in Denpasar City will be the highest on an annual basis compared to districts/cities throughout Indonesia. The increase will reach 20,1% towards the end of 2023, based on the Rumah123.com Flash Report. Denpasar is one of the most consistent areas in residential price growth, apart from Bogor. Denpasar recorded a difference in price growth above the annual inflation rate of 10,2%.

Financial planner from Lintar Financial, Agus Helly, who was also present at the media gathering, suggested that the younger generation who will apply for a mortgage should start setting goals. Is it a need or a desire. Then, do budget planning.

“Find out what you need, whether to buy or rent. "If possible, you can take advantage of support from the government, such as subsidies," said Agus.

Furthermore, they can also consider collaboration options with a partner for those who are planning to get married or settle down. If it is still not sufficient, then they can improve their skills to seek additional income.