Publicly listed Bank Mandiri has signed an agreement with state-owned developer Perum Perumnas to provide mortgage loans (KPR) for 45 new housing projects throughout 40 regencies and cities in the nation.

Mandiri’s retail banking director, Donsuwan Simatupang, said on Monday the bank would allocate credit limits of up to Rp 900 billion (US$63.9 million) for the housing financing scheme.

“Our KPR offers some benefits such as competitive interest rates and instant approval,” he said during a press conference in Jakarta, adding that Mandiri also had KPR Millennial for people aged 21 to 45 years old.

Donsuwan said that until August, Mandiri had Rp 42.96 trillionin outstanding mortgage loans, a 3.45 percent increase from the same period last year.

Meanwhile, Perumnas marketing director Anna Kunti Pratiwi said that the 45 projects, which signify the developer’s 45th anniversary in July, were low-rise housing.

“In the future, we also want to make high-rise housing projects,” she said, adding that the plan would be executed in the areas ofJava where empty land has become increasingly scarce. “The millennial market is our challenge for the future. We will develop an integrated residential concept; that’s our strategy.”

Anna said in all of Perumnas’ ongoing projects 20 to 30 percentwould be allocated for subsidized housing for middle- to low-income citizens.

According to the Perumnas’ business portfolio, low-rise housing was still the backbone of its business as it made up more than 60 percent of its total products.

She said she hoped that about 3,200 low-rise housing units (equivalent to Rp 1.1 trillion) can be sold this year, including from the 45 projects offered through the Mandiri mortgage scheme. (eyc)