Transcript Facilitates funds flow from CAPITAL MARKET to HOUSING

HOUSING FINANCE IN INDONESIA
ASIA PACIFIC UNION OF HOUSING FINANCE INTERNATIONAL CONFERENCE
NEW DELHI, JAN 30th – 31st , 2012
PREPARED BY:
PT. SARANA MULTIGRIYA FINANSIAL (Persero)
INDONESIA
Facilitates funds flow from CAPITAL MARKET to HOUSING SECTOR
AGENDA

COUNTRY HIGHLIGHTS OF INDONESIA

HOUSING FINANCE MARKET

ABOUT SMF

CONCLUSION
Facilitates funds flow from CAPITAL MARKET to HOUSING SECTOR
COUNTRY HIGHLIGHTS OF INDONESIA
Facilitates funds flow from CAPITAL MARKET to HOUSING SECTOR
COUNTRY HIGHLIGHTS OF INDONESIA
A GLANCE OF INDONESIA
 Indonesia is the biggest archipelago country in South East Asia
comprising of 17.504 islands.
 Total population in 2010 showed 237.641.326 people
 Jakarta is the capital city of Indonesia.
Facilitates funds flow from CAPITAL MARKET to HOUSING SECTOR
COUNTRY HIGHLIGHTS OF INDONESIA
GDP GROWTH & POPULATION
7.00%
6.3%
5.7%
5.00%
4.50%
4.80%
6.1%
6.0%
5.5%
250
241
238
240
234
5.0%
231
228
4.6%
230
225
4.00%
3.60%
221
218
220
215
3.00%
Millions
6.00%
6.5%
212
209
210
2.00%
200
1.00%
0.00%
190
2001
2002
2003
2004
Population
2005
2006
2007
2008
2009
2010
2011*
GDP
Even though growth showed relative decline during the global crisis, bottoming in 2009 at 4.6%, the
economy rebounded in 2010 at 6.1% and 2011 at 6.5% which reflects a solid fundamental economics.
Source : BPS (Biro Pusat Statistik) 2011 (www.bps.go.id)
*Estimation
Facilitates funds flow from CAPITAL MARKET to HOUSING SECTOR
COUNTRY HIGHLIGHTS OF INDONESIA
Mortgage Base Lending Rate, BI Rate* and Inflation
12.97%
13%
11.50%
11.43%
11.52%
6.75%
6.75%
11.62%
11.57%
11.45%
11.44%
11.54%
11.35%
11.05%
10.91%
6.00%
6.00%
11%
9%
7%
6.50%
6.75%
7.02%
6.84%
6.65%
5%
6.16%
6.75%
5.98%
6.75%
6.75%
6.75%
6.75%
6.50%
5.54%
4.61%
4.79%
3%
Mortgage Base Lending rate
BI Rate
4.61%
4.42%
4.15%
3.79%
Inflation (y-o-y)
Inflation continues to decrease followed by a decrease on BI Rate. Lending rate which uses BI
rate as its benchmark decrease at a slower rate.
* Central Bank of Indonesia
Facilitates funds flow from CAPITAL MARKET to HOUSING SECTOR
Source : Bank Indonesia 2011 (www.bi.go.id)
HOUSING FINANCE MARKET
Facilitates funds flow from CAPITAL MARKET to HOUSING SECTOR
HOUSING FINANCE MARKET
MORTGAGE MARKET
0.9%
0.3%
7.1%
47.0%
State Banks
Private National Banks
44.7%
Regional Government Banks
Foreign Banks and Joint Banks
Rural Banks
More than 90% of mortgages are originated by 10 banks as major players until 2011
Source: The Indonesian Banking Statistics (SPI), 2011
Facilitates funds flow from CAPITAL MARKET to HOUSING SECTOR
HOUSING FINANCE MARKET
MORTGAGE TO GDP
95%
100%
81% 84%
80%
60%
39% 41%
40%
17% 20%
20%
26% 29%
46%
32%
8%
2%
Denmark
USA
UK
Germany
Hongkong
Taiwan
Singapore
Malaysia
Korea
China
Thailand
India
Indonesia
0%
The ratio of mortgage portfolio to GDP in Indonesia still very low. Compare with total GDP, the proportion of housing loan
portfolio figures around 2% where country like China and Malaysia have higher percentage 20% and 29%
Source : HDFC, 2009
Facilitates funds flow from CAPITAL MARKET to HOUSING SECTOR
HOUSING FINANCE MARKET
HOUSING SALES
300
40
35
250
30
200
25
150
20
15
100
10
50
0
5
200
1
200
2
200
3
200
4
Volume (Thousand Units) 106.5 121.3 134.5 150.6
Value (IDR Trillion)
4.04 7.13 8.16 11.45
200
5
200
6
200
7
200
8
200
9
201
0
201
1
169
163.6 191.7 231.4 173.4 212.3 242.3
16.2
17.56
23
0
29.37 25.93 31.08 37.96
Sales of housing experience healthy growth since significant drop in 2009. Total sales at the end of 2011 peek around 242,000 houses. This sales
potrays the growth in new constructed houses.
Source PSPI, BI, Ministry of Housing, REI, APERSI, Spire estimation & Analysis(*)
Facilitates funds flow from CAPITAL MARKET to HOUSING SECTOR
HOUSING FINANCE MARKET
HOUSING DEMAND
Total housing demand:
1,230,000 units per year
Source : Apersi, Kemenpera, PSPI, Deputy Ministrer of Infrastructure
Facilitates funds flow from CAPITAL MARKET to HOUSING SECTOR
HOUSING FINANCE MARKET
SUPPLY AND DEMAND DEMAND
The big gap between supply and demand of houses remains.
1.
The total demand of 1.23 million units from:

Current Indonesia’s Housing backlog over 8.6 million units, requiring
approx. 430,000 units per year to be built in 20 year,

Housing needs from population growth is recorded at 800,000 units
per year
2.
Supply of New Housing Construction of approx. 240,000 units in 2011 but
still almost always below housing demand.
Facilitates funds flow from CAPITAL MARKET to HOUSING SECTOR
ABOUT SMF
Facilitates funds flow from CAPITAL MARKET to HOUSING SECTOR
ABOUT SMF
SMF PROFILE
1. PT. Sarana Multigriya Finansial (Persero) (“SMF”), established on July 22, 2005, as a
Secondary Mortgage Corporation – wholly owned by the government.
2. SMF’s mission is to create the affordability for Indonesian Families to own a decent
homes.
3. Initial Paid Up Capital of IDR 2 trillion
4. Total assets of IDR 4,8 trillion as of 31 December 2011
Facilitates funds flow from CAPITAL MARKET to HOUSING SECTOR
ABOUT SMF
2005
SMF ROADMAP
2018
Catalysator
Facilitator
To Build secondary mortgage market.
 Liquidity Facility
 Securitization
To Develop secondary mortgage market
 Securitization
 Guarantor (Mortgage & Financial)
 Provide Housing Finance Information
System (HFIS)
Facilitates funds flow from CAPITAL MARKET to HOUSING SECTOR
ABOUT SMF
THE COMPANY’S PROGRAMS
 Liquidity Facility Program
provide medium to long term loans for mortgage lenders.
 Securitization Program
provide a mechanism of sales of mortgage loans and issue of mortgage backed securities.
 Guarantee Program
provide guarantee for obligation / mortgage backed securities issued by mortgage lenders.
 Support Programs
- Provide a guidence and mortgage document standard
- Education and training programs
- Socialization (workshop, seminar, product introductions)
Facilitates funds flow from CAPITAL MARKET to HOUSING SECTOR
ABOUT SMF
SIX-YEARS HIGHLIGHTS
Milllion IDR
2011
2010
2009
2008
2007
2006
ASSETS
Current Assets
Loan
Fixed Assets
4.817.940
2.128.038
2.611.695
78.207
2.571.117
1.048.132
1.434.022
88.963
1.927.470
885.161
938.271
104.038
1.268.212
673.117
533.639
61.456
1.188.150
827.754
339.000
21.396
1.123.148
1.002.721
100.000
20.427
LIABILITIES
Current Liabilities
Bonds Payable
Non Current Liabilities
2.310.322
38.407
2.267.106
4.809
1.142.831
25.793
1.113.960
3.078
575.888
22.415
549.376
4.098
10.078
6.991
3.087
7.277
5.251
2.026
7.373
6.109
1.264
EQUITY
Capital Stock
Retained Earning
2.507.618
2.000.000
507.618
1.428.286
1.000.000
428.286
1.351.582
1.000.000
351.582
1.258.134
1.000.000
258.134
1.180.873
1.000.000
180.873
1.115.775
1.000.000
115.775
113.266
33.157
80.109
107.864
30.226
77.638
125.080
31.633
93.447
102.182
24.921
77.261
85.979
20.881
65.098
104.280
15.769
88.511
REVENUES
COST
NET INCOME
Facilitates funds flow from CAPITAL MARKET to HOUSING SECTOR
ABOUT SMF
Billions IDR
REALIZATION FUND FLOW BY YEAR
1,400
1,200
1,000
800
600
400
200
2005
2006
2007
Lending
2005
Lending
Securitization
Total
-
2006
100.000
100.000
2008
2009
2010
2011
2009
408.000
502.000
910.000
2010
702.000
750.000
1.452.000
Securitization
2007
305.000
305.000
Years
2008
534.000
534.000
2011
1.254.000
703.000
1.957.000
The first mortgage securitization in Indonesia was succesfully concluded in 2009 and followed by other transaction every year
Facilitates funds flow from CAPITAL MARKET to HOUSING SECTOR
--
ABOUT SMF
ACCUMULATIVE FUND FLOW TO THE PRIMARY MARKET
6000
Billion IDR
5000
4000
3000
2000
1000
0
Refinancing / Repo
Securitization
Total
2005
0
0
0
2006
100
0
100
2007
405
0
405
2008
939
0
939
2009
1347
502
1849
2010
2049
1252
3301
2011
3303
1955
5258
The used of capital market fund continues to increase housing sector with accumulated volume in 2011 of 5,26 trililion IDR
Facilitates funds flow from CAPITAL MARKET to HOUSING SECTOR
CLOSING REMARKS
1.
As the population continue to grow, the needs for housing continue to rise. To build a
robust systems of housing finance is critical for Indonesia.
2. Through strengthening the primary mortgage market and developing secondary
mortgage market, availability of sustainable medium to long term fund will eventually
increase affordability
3. The first mortgage securitization in Indonesia was concluded in 2009 and followed
with other transactions.
4. To develop a strong housing finance in Indonesia, it still required government and
stake holders supports. i.e: government regulations.
Facilitates funds flow from CAPITAL MARKET to HOUSING SECTOR
HOUSING FINANCE IN INDONESIA
Facilitates funds flow from CAPITAL MARKET to HOUSING SECTOR