TEMPO.CO, Jakarta - Minister of State-Owned Enterprises Erick Thohir criticizes the zero percent down payment (DP) housing program as it fails to educate Indonesian young generation in saving and be responsible.
“I do not agree with zero percent down payment because this does not educate our young generation to save,” said Erick in Jakarta, on Tuesday, January 28, 2020.
According to Erick, if the young generation is educated to be accustomed to saving for a five percent housing loan, then they will have a sense of responsibility. “Under the condition that, (there is) access to a 20-30 years housing loan period as well as certainly, a sensible mortgage rate,” Erick stated.
Erick is concerned that the parties who would later take the zero percent DP housing will not be the younger generation, instead, being capitalized on by brokers or traders. “It's possible that the zero percent DP housing will not be bought by young people, but will be bought by brokers or traders for reselling,” he said.
Furthermore, the minister tried to encourage Bank Tabungan Negara (BTN) to establish a partnership with the Japan Bank for International Cooperation (JBIC).
“Through an efficient mortgage rate established from the partnership with JBIC, this will be able to help (achieve) one million homes for the millennial generation,” claimed Erick Thohir in a public lecture.
The Jakarta Regional House of Representatives (DPRD) has asked the regional government to monitor the program closely, geared to ensure that there would be no transfers of ownership.
The zero rupiah DP program is aimed at facilitating residents who are yet to have their own property, prepared by the Jakarta Provincial Government.
It is intended for Jakartans in the lower-income bracket (MBR), in accordance with Governor Regulation No. 104 of 2018.
The conditions for participation in the zero percent down payment program include those who have never received a housing subsidy, and earns Rp4 million to Rp7 million; with a priority being afforded for those who are married.
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