ICBC Indonesia provides bilateral financing amounting to IDR 10 Trillion to support Bank BTN in the Indonesian Government’s “One-Million House” program

Jakarta, September 16th 2015.  PT Bank ICBC Indonesia today signed a memorandum of understanding (MoU) with PT Bank Tabungan Negara (BTN) to form cooperation in housing financing, amounting up to RMB 5 billion, approximately IDR 10 trillion, over the next three years. The MOU aims to support housing construction and infrastructure in the form of loan facility by ICBC Indonesia to BTN, the purchase of BTN's credit asset by ICBC Indonesia, the syndication loan facility from ICBC Indonesia to BTN in the future, and other forms of financing commonly carried out between banking institutions, as explained by the President Director of ICBC Indonesia, Shen Xiaoqi after the MOU signing with Maryono, the President Director of BTN.

As the initial step in realizing the MoU, both parties also sign bilateral loan facility agreement amounting to IDR 1 trillion or its equivalent in RMB to promptly implement the Government of Indonesia’s ‘One-Million Housing’ program. The fund will provide BTN with fresh liquidity and strengthen its funding to execute Indonesia's government housing program.

 “This marks an important milestone for ICBC Indonesia in its role in bridging financial sectors between Indonesia and China,” stated Shen Xiaoqi, the President Director of ICBC Indonesia. The cooperation reiterates the ICBC Indonesia’s commitment to take a much bigger role in developing Indonesia's economy. "ICBC Indonesia is committed to focus on Indonesian government’s most critical priorities; one of which is to help provide affordable housing to Indonesians across the country," Shen Xiaoqi added. 

Meanwhile, the President Director of BTN, Maryono, explained the cooperation with ICBC Indonesia is part of the action plan of the bank in supporting the government’s “One Million Housing” program. This program, Maryono continues, may also involve external parties and in this case, also financing support in which ICBC Indonesia becomes the strategic partner in providing bilateral financing.

“We appreciate the cooperation with ICBC Indonesia in supporting the housing financing particularly for the middle to low income segment. At this point of time, the demand of housing has not shown declining trend, but instead has been showing a positive trend in the past years. This fact translates into a housing demand-supply gap in the market. Through this financing, we hope we can help the government to solve the housing issue in Indonesia,” Maryono elaborates.

“We believe that the mortgage segment, in which BTN is a key player, will grow consistently with that trend,” Jeff S.V. Eman, Director of ICBC Indonesia, states. ICBC Indonesia agrees  to strengthen BTN’s position in realizing its role as the “mortgage bank” in Indonesia and a partner of the Government to execute the people housing program.