BBTN - Dominates national subsidized mortgage distribution

BBTN - Dominates national subsidized mortgage distribution Bank Tabungan Negara (BTN) has once again affirmed its position as the largest bank distributing home ownership loans (KPR) under the Housing Financing Liquidity Facility (FLPP) scheme in Indonesia. As of December 22, 2025, BTN has realized financing for 128,608 subsidized housing units, equivalent to 46.7% of the total national distribution of 270,985 units. Data from the People's Housing Savings Management Agency (BP Tapera) show that BTN is ranked first out of 39 banks distributing FLPP Sejahtera mortgages. Subsidized housing financed by BTN is built by 8,058 developers out of a total of 13,118 housing units, spread across 33 provinces and 401 districts and cities. BTN's subsidiary, PT Bank Syariah Nasional (BSN), when it was still a BTN Sharia Business Unit, was the second-largest distributor with 59,463 units realized. If combined, the total distribution of BTN and BSN throughout 2025 reached 188,071 units. (Source : Kontan) Comment : BTN has successfully transitioned from a traditional state bank to a specialized housing ecosystem leader. Its 2026 success is no longer dependent solely on interest rates, but on its ability to coordinate the entire supply chain. BTN remains the "key partner" for the Indonesian government. Its ability to integrate with BP Tapera and a massive developer network makes it the primary engine for achieving the country's housing targets in 2026. The government's target of 350,000 units for 2026 will intensify competition. However, the bank is positioning itself to capture the majority share, in our view. Maintain BUY BBTN GGM FV of IDR 1,530 (0.4x 2026F P/B).