BTN pitches Indonesia’s subsidized mortgage scheme as a sustainable finance model

The bank says 90% of its mortgages are accessed by low-income borrowers.

Indonesia’s PT Bank Tabungan Negara (Persero) Tbk (BTN) highlighted its subsidized mortgage program, KPR Subsidi, as a model for both financial inclusion and long-term profitability.

“Our subsidized mortgage portfolio proves that financial performance and social responsibility are not mutually exclusive—they can reinforce each other,” said Setiyo Wibowo, BTN’s Director of Risk Management, speaking at the UNEP-FI Asia Pacific Roundtable on Sustainable Finance in Suzhou, China.

Subsidized mortgages make up the bulk of BTN’s consumer loan portfolio, with 90% accessed by low-income households.

Data presented at the forum showed that 61% of BTN’s mortgage customers live in suburban or rural areas.

Around 68% of borrowers fall within the 30 to 60 age group, the country’s most productive demographic segment.

Women account for 31% of the bank’s subsidized mortgage recipients, reflecting increased gender inclusion in housing finance.

“Housing is a fundamental right, and our data shows that inclusive financing—especially for women and low-income earners—can be done at scale,” Wibowo noted.

BTN’s program aligns with Indonesia’s national housing initiative and supports the government’s broader economic inclusion agenda.

The bank has been integrating sustainability into its operations since 2023 through the UNEP-FI Principles for Responsible Banking.

“Since signing the UNEP FI Principles for Responsible Banking, we’ve accelerated our ESG integration to make our housing finance model future-ready,” said Wibowo.

It has also developed an ESG framework and launched a Low-Emission Housing Program to reduce the sector’s carbon footprint.

“We are actively embedding climate considerations like flood and fire risk into our lending strategy to ensure long-term portfolio resilience,” he added.

BTN’s portfolio management now includes climate risk considerations, aiming to balance profit and impact in its long-term housing finance approach.