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World Bank's IFC to help provide affordable housing finance in Indonesia

IFC anticipates the project to improve access to affordable housing finance for individual homebuyers in the low to the middle-income segment. Individual homebuyers are likely to benefit from increased affordability and better terms.


Devdiscourse News Desk Last Updated at 12 Aug 2018, 21:08 IST Indonesia
World Bank's IFC to help provide affordable housing finance in Indonesia
  • Housing investment has a strong multiplier effect across the economy given the number of linked sectors. (Image Credit: Pixabay)

The proposed project entails setting up a specialized mortgage finance company in Indonesia as a joint venture with PT Indosurya Inti Finance, Surya Effendy, Henry Surya (collectively referred to as "Indosurya"), IFC and other international investors.

The Company shall provide mortgage financing primarily to low to middle-income borrowers including self-employed individuals who typically lack adequate access to housing finance in Indonesia. The Company will encourage the green housing market in Indonesia through its lending and advisory activities.

IFC anticipates the project to improve access to affordable housing finance for individual homebuyers in the low to the middle-income segment. Individual homebuyers are likely to benefit from increased affordability and better terms.

The Project is also expected to create jobs as housing investment has a strong multiplier effect across the economy given the number of linked sectors, such as the production of building material, construction sector, or financial services.

IFC's presence in the project provides comfort to the participants and sends a positive signal to the market which shall help the company to attract long-term funding from other international and impact investors.

(With inputs from IFC)


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