Bukopin partners SMF to boost mortgage financing

16 August 2018 07:09

JAKARTA. PT Bank Bukopin Tbk has signed a partnership with PT Sarana Multigriya Finansial (SMF) to improve mortgage financing. For the partnership Bukopin will receive Rp 500 billion in financing from SMF.

Bukopin CEO Eko R. Gindo said through this partnership the bank can catch mortgage potential that it usually does not absorb.

"Our mortgage potential from linkage is big but we let that go because we can't compete in terms of long term financing and interest rates. With this partnership we can catch that and it's a very good thing," said Mr Gindo at Bukopin headquarters on Wednesday (15/8).

He added that Bukopin is looking to add mortgage as one of its prominent operations, as South Korean investor KB Kookmin Bank enters the bank.

"We will study our mortgage system further as our investor Kookmin enters, with it being the largest mortgage player in South Korea," he said.

Mr Gindo said that currently the company's mortgage realisation is still small at Rp 3 trillion as of June 2018, below 5% of its total outstanding loans.

He added that at least this year Bukopin's mortgage realisation will double or increase by Rp 1.7 trillion to 2 trillion. Bukopin will boost mortgage by extending its mortgage promotion programme with 8.8% fixed interest rate for two years.

There is a possibility that the promo will be extended to three to five years. Bukopin is also looking to target a market segment with mortgage ticket size around Rp 100 million to 300 million, which has not been touched by the company. (AM/MS)

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