As one of the state banks that specifically distributes housing finance, through the One Million Houses program, Bank Tabungan Negara (BTN) has a strategic role in the growth of the housing sector in Indonesia. The development of housing and settlement areas in one area will have an impact on the growth of economic sectors that are interrelated backward and forward linkages, which in turn will have an impact on the economy at large scale. Because housing development increases the demand for various inputs from sectors related to housing development, in aggregate it will have an impact on the growth of other economic sectors, have an impact on employment and increase national economic growth. Therefore, Bank BTN together with the International Center for Applied Finance and Economics (InterCAFE) IPB jointly conducted a study on model development to analyze the impact or multiplier effect of the housing sector and housing finance on the economy and other economic sectors as well as on social aspects as well as knowing which economic sectors feel the impact of the development of the housing sector and how the housing sector relates to various other economic sectors.
Property Credits Have a Positive Impact on the National Economy
The provision of property credit by national banks is able to provide benefits to the Indonesian economy, both in terms of national output (output multiplier), creating a gross business surplus in the economy (income multiplier), as well as creating labor compensation in the economy (labor multiplier). Bank BTN property credit have a developmental impact for the workforce that is greater than the total development impact of national property credit. This shows that BTN’s performance in credit distribution to the property sector is above the performance of other banks in increasing national economic growth and national employment.
In addition, it is also seen that the property sector has backward and forward linkages where the property sector requires raw materials from other sectors and the property sector is also an input for other economic sectors.
Furthermore, BTN property credit injection is able to reduce poverty levels at the national, urban and rural levels. This shows that in line with the role of property loans disbursed by BTN to national economic growth, it also reduces social problems, namely reducing poverty, both at the national level and in urban and rural areas.