Homeownership can be transformative for financial well-being. It is not just about owning a long-term asset—a mortgage can help improve credit history and creates collateral for future financing. It is a pathway to economic and social mobility.
A secure home also enhances household stability and resilience. Affordable and predictable mortgage payments protect households in case of changes in monthly earnings. People who own their homes do not have to worry about untenable rental conditions, and they are less impacted by rising cost of living. Regular mortgage payment also fosters payment discipline and good saving habits. And the spillover effects of homeownership are many—staying in one place is good for children’s education stability, strengthening community ties, and improving financial confidence.
The pathway to asset building—especially homeownership—remains distant for many low-income households in Indonesia. Around 60 percent of Indonesian workers are in the informal sector, where incomes are irregular, and documentation is limited. As a result, many are routinely excluded from traditional mortgage markets, with large down payments, strict documentation, and rigid income verification requirements placing homeownership out of reach.
Subsidized housing finance in Indonesia
To help address these barriers, the Government of Indonesia provides support through subsidized housing finance schemes, commonly known as Kredit Pemilikan Rumah (KPR) Bersubsidi. These programs are designed to make homeownership affordable for low-income households by offering below-market mortgage rates and reduced upfront costs. The programs are managed by the Public Housing Savings Management Agency (BP Tapera) under the policy direction of the Ministry of Housing and Settlement Areas, and delivered primarily through state-owned banks, most notably Bank Tabungan Negara (BTN).
Serving first-time homebuyers, mainly young, low-income, and informal workers, BTN is lowering barriers through subsidized mortgages with low down payments (starting at 1%), affordable installments, and simplified onboarding.
BTN’s motto, “Because Life Is Not Only About Today,” is backed by savings and investment products that encourage long-term financial planning and security, even for customers with modest or irregular incomes.
Finding financial freedom: BTN’s mortgage clients
For Fahrudin, Aisyah and Mursidi, three of BTN’s recent clients living in the ‘Gran Harmoni’ cluster housing project, the opportunity to own a home has made a big difference in their financial lives. While they come from different backgrounds, they all feel the positive impact of the structure provided by regular installments and the security of a permanent place to live.
“Having a BTN home loan gives me stability. The fixed installment helps me plan my finances better,” says Aisyah, who is in the second year of her mortgage. As a single woman, home ownership was not her main priority, but when her parents suggested she explore buying a house instead of continuing to rent, she found a suitable option at a housing development, and the real estate developer introduced her to BTN’s offerings. Aisyah is a healthcare worker at a regional public hospital, and she was surprised to find that the new responsibility made her more disciplined financially, prioritizing saving over spending. Plus, she enjoys the independence of having her own space and feels immense pride in her home.
Mursidi also enjoys the independence that comes with owning a home, and he is willing to work hard to keep up with the monthly payments. In the mornings, he sells chicken porridge from his motorcycle, and in the afternoons, he teaches Qur’an lessons to 35 students from the patio of his home. Before securing his mortgage, he lived with his parents but dreamed of giving his young family a place of their own. Today, he, his wife, and their one-year-old son live in a house they proudly call their own through the BTN subsidized mortgage program.
Maintaining the housing installments requires discipline, but Mursidi is determined. He and his wife set aside a small amount of money each day in an emergency fund, saving for unexpected events such as motorcycle repairs—essential for his porridge business—or if their child becomes ill. Despite the challenges, homeownership has given them stability, dignity, and a foundation to build a more secure future.
Fahrudin and his wife rented a small house for 10 years in Jakarta before deciding that they were ready to look into home ownership. After obtaining a subsidized mortgage from BTN, his family moved into Gran Harmoni. Now in the second year of their mortgage, they finally have both the space they need and the stability that comes with predictable, fixed monthly installments. Fahrudin says this stability has helped him manage his income more effectively: he sets aside a portion of his monthly salary immediately for the mortgage and relies on his per diems to cover everyday expenses.
In addition to their mortgages, Aisyah, Mursidi and Fahrudin can take advantage of BTN products and services that help clients responsibly manage their payments and further improve their financial health. BTN offers bundled home and life insurance and post-purchase support for their clients, and complementary products such as expanded savings and investment products are available through BTN’s digital banking app, Bale by BTN.
Bridging sustainability and financial health
Sustainability is an added benefit of living in the Gran Harmoni cluster housing project. BTN’s innovative “Pay Your Mortgage with Your Waste” program (Bayar Angsuranmu dengan Sampahmu) allows residents to bring their household waste to a recycling site, where they earn points that are converted straight into Rupiah that go towards mortgage payments.
Some homes in Gran Harmoni are also low-emission housing, built with recycled materials and the streets are lit with solar power. This makes maintaining homes more affordable for residents, while also creating cleaner, healthier communities.
Long-term financial health is about investing in the future and building assets that create a lifetime of security. For young and low-income Indonesians, being able to access fair and affordable finance to buy a home is a pathway to better financial health and key to breaking cycles of vulnerability and generational inequality. BTN is providing the tools people need to save for tomorrow, because—as they say—life is not only about today.