Facilitates funds flow from CAPITAL MARKET to HOUSING SECTOR
HOUSING FINANCE IN INDONESIA ASIA PACIFIC UNION OF HOUSING FINANCE
INTERNATIONAL CONFERENCE NEW DELHI, JAN 30 th 31 st, 2012 PREPARED
BY: PT. SARANA MULTIGRIYA FINANSIAL (Persero) INDONESIA Slide 2
Facilitates funds flow from CAPITAL MARKET to HOUSING SECTOR AGENDA
COUNTRY HIGHLIGHTS OF INDONESIA HOUSING FINANCE MARKET ABOUT SMF
CONCLUSION Slide 3 Facilitates funds flow from CAPITAL MARKET to
HOUSING SECTOR COUNTRY HIGHLIGHTS OF INDONESIA Slide 4 Facilitates
funds flow from CAPITAL MARKET to HOUSING SECTOR COUNTRY HIGHLIGHTS
OF INDONESIA Indonesia is the biggest archipelago country in South
East Asia comprising of 17.504 islands. Total population in 2010
showed 237.641.326 people Jakarta is the capital city of Indonesia.
A GLANCE OF INDONESIA Slide 5 Facilitates funds flow from CAPITAL
MARKET to HOUSING SECTOR COUNTRY HIGHLIGHTS OF INDONESIA Source :
BPS (Biro Pusat Statistik) 2011 (www.bps.go.id)www.bps.go.id
*Estimation Even though growth showed relative decline during the
global crisis, bottoming in 2009 at 4.6%, the economy rebounded in
2010 at 6.1% and 2011 at 6.5% which reflects a solid fundamental
economics. GDP GROWTH & POPULATION Slide 6 Facilitates funds
flow from CAPITAL MARKET to HOUSING SECTOR COUNTRY HIGHLIGHTS OF
INDONESIA Source : Bank Indonesia 2011 (www.bi.go.id)www.bi.go.id
Inflation continues to decrease followed by a decrease on BI Rate.
Lending rate which uses BI rate as its benchmark decrease at a
slower rate. * Central Bank of Indonesia Slide 7 Facilitates funds
flow from CAPITAL MARKET to HOUSING SECTOR HOUSING FINANCE MARKET
Slide 8 Facilitates funds flow from CAPITAL MARKET to HOUSING
SECTOR HOUSING FINANCE MARKET More than 90% of mortgages are
originated by 10 banks as major players until 2011 Source: The
Indonesian Banking Statistics (SPI), 2011 MORTGAGE MARKET Slide 9
Facilitates funds flow from CAPITAL MARKET to HOUSING SECTOR
HOUSING FINANCE MARKET Source : HDFC, 2009 The ratio of mortgage
portfolio to GDP in Indonesia still very low. Compare with total
GDP, the proportion of housing loan portfolio figures around 2%
where country like China and Malaysia have higher percentage 20%
and 29% MORTGAGE TO GDP Slide 10 Facilitates funds flow from
CAPITAL MARKET to HOUSING SECTOR HOUSING FINANCE MARKET Source
PSPI, BI, Ministry of Housing, REI, APERSI, Spire estimation &
Analysis(*) Sales of housing experience healthy growth since
significant drop in 2009. Total sales at the end of 2011 peek
around 242,000 houses. This sales potrays the growth in new
constructed houses. HOUSING SALES Slide 11 Facilitates funds flow
from CAPITAL MARKET to HOUSING SECTOR HOUSING FINANCE MARKET Source
: Apersi, Kemenpera, PSPI, Deputy Ministrer of Infrastructure Total
housing demand: 1,230,000 units per year HOUSING DEMAND Slide 12
Facilitates funds flow from CAPITAL MARKET to HOUSING SECTOR
HOUSING FINANCE MARKET The big gap between supply and demand of
houses remains. 1.The total demand of 1.23 million units from:
Current Indonesias Housing backlog over 8.6 million units,
requiring approx. 430,000 units per year to be built in 20 year,
Housing needs from population growth is recorded at 800,000 units
per year 2.Supply of New Housing Construction of approx. 240,000
units in 2011 but still almost always below housing demand. SUPPLY
AND DEMAND DEMAND Slide 13 Facilitates funds flow from CAPITAL
MARKET to HOUSING SECTOR ABOUT SMF Slide 14 Facilitates funds flow
from CAPITAL MARKET to HOUSING SECTOR ABOUT SMF SMF PROFILE 1.PT.
Sarana Multigriya Finansial (Persero) (SMF), established on July
22, 2005, as a Secondary Mortgage Corporation wholly owned by the
government. 2.SMFs mission is to create the affordability for
Indonesian Families to own a decent homes. 3.Initial Paid Up
Capital of IDR 2 trillion 4.Total assets of IDR 4,8 trillion as of
31 December 2011 Slide 15 Facilitates funds flow from CAPITAL
MARKET to HOUSING SECTOR ABOUT SMF To Develop secondary mortgage
market Liquidity Facility Securitization Securitization Guarantor
(Mortgage & Financial) Provide Housing Finance Information
System (HFIS) Facilitator Catalysator To Build secondary mortgage
market. 2005 2018 SMF ROADMAP Slide 16 Facilitates funds flow from
CAPITAL MARKET to HOUSING SECTOR ABOUT SMF Liquidity Facility
Program provide medium to long term loans for mortgage lenders.
Securitization Program provide a mechanism of sales of mortgage
loans and issue of mortgage backed securities. Guarantee Program
provide guarantee for obligation / mortgage backed securities
issued by mortgage lenders. Support Programs -Provide a guidence
and mortgage document standard -Education and training programs
-Socialization (workshop, seminar, product introductions) THE
COMPANYS PROGRAMS Slide 17 Facilitates funds flow from CAPITAL
MARKET to HOUSING SECTOR ABOUT SMF SIX-YEARS HIGHLIGHTS Slide 18
Facilitates funds flow from CAPITAL MARKET to HOUSING SECTOR - -
ABOUT SMF The first mortgage securitization in Indonesia was
succesfully concluded in 2009 and followed by other transaction
every year REALIZATION FUND FLOW BY YEAR Slide 19 Facilitates funds
flow from CAPITAL MARKET to HOUSING SECTOR ABOUT SMF The used of
capital market fund continues to increase housing sector with
accumulated volume in 2011 of 5,26 trililion IDR ACCUMULATIVE FUND
FLOW TO THE PRIMARY MARKET Slide 20 Facilitates funds flow from
CAPITAL MARKET to HOUSING SECTOR CLOSING REMARKS 1. As the
population continue to grow, the needs for housing continue to
rise. To build a robust systems of housing finance is critical for
Indonesia. 2.Through strengthening the primary mortgage market and
developing secondary mortgage market, availability of sustainable
medium to long term fund will eventually increase affordability
3.The first mortgage securitization in Indonesia was concluded in
2009 and followed with other transactions. 4.To develop a strong
housing finance in Indonesia, it still required government and
stake holders supports. i.e: government regulations. Slide 21
Facilitates funds flow from CAPITAL MARKET to HOUSING SECTOR
HOUSING FINANCE IN INDONESIA