Bank Indonesia to provide funding for state housing project

INDONESIA’S central bank has agreed to provide 130 trillion rupiah (S$10.6 billion) to support President Prabowo Subianto’s affordable housing programme, presidential adviser Hashim Djojohadikusumo said on Wednesday (Feb 26).

“BI has agreed to provide 130 trillion (rupiah) to support the housing sector. They decided last week,” Hashim said at an economic forum. He did not elaborate, but said foreign investors had also offered to be involved in the programme.

Bank Indonesia’s spokesperson did not immediately respond to a request for comment.

At a press conference last week, Governor Perry Warjiyo said BI would buy government bonds in the secondary market to support the housing scheme, and Finance Minister Sri Mulyani Indrawati said she was considering offering bonds linked to the programme.

During last year’s election campaign, Prabowo had pledged his government would build 3 million affordable houses per year.

BI had already announced it would allow banks to hold a lower level of required reserves if they lend to the property sector, aiming to free up 80 trillion rupiah worth of liquidity for housing loans. REUTERS