Heaptalk, Jakarta — Bank Tabungan Negara (BTN) teams up with Mandiri Capital Indonesia (MCI) to establish the managed fund towards BTN Fund. As the sole investor of this funding program, BTN will set up investment funds worth Rp200 billion – Rp400 billion, channeled to startups in the prop-tech, mortgage tech, fintech, embedded finance, construction tech, open finance, and SaaS sectors.
The company revealed that the BTN Fund is an investment program focusing on identifying and injecting technology companies, particularly in property startups. Besides providing strategic funding for the prop-tech startups, this investment program is also established to inject funds into other companies from diverse sectors aligned with BTN bank’s business.
“This strategic partnership intends to elevate company capabilities in this sector amidst the 0% tax stimulus from the government for houses under Rp2 billion. The formation of the BTN Fund is expected to create demand, expand market share, and open new segments for companies in providing end-to-end solutions in the housing sector,” affirmed the Director of Risk Management of Bank BTN, Setiyo Wibowo.
In his further statement, Indonesia’s prop-tech industry has tremendous potential to improve, demonstrated by the housing backlog figure in the archipelago reaching 12.7 million units. The backlog number continues to increase as the number of marriages increases, reaching 1 million annually. By considering several criteria for companies to be funded, he also believed the growth of various industries derived from property, including startup businesses, will also increase.
On the other hand, this cooperation is claimed to have a positive impact on this banking company, particularly in terms of interest income due to loan growth, especially on high-yield loans. The company’s revenue is predicted to enhance by more than 4% in 2024.
“BTN Fund can bridge the company’s needs for BTN’s digital transformation and participate in the larger mortgage and proptech ecosystem. This step also allows the company to increase NIM, fee-based income, cost efficiency, and improvement.” The Investment Director of Mandiri Capital Indonesia, Dennis Pratistha, said.
