The Housing Omnibus Law Contains Provisions on KPR Securitization

The Government intends to integrate the revised provisions of Law (“Draft Bill”) No. 4 of 2016 on Public Housing Savings (“Tapera”) into the Housing and Settlement Areas Omnibus Law (“PKP”), namely Law No. 1 of 2011 on PKP (“Law 1/2011”) and Law No. 20 of 2011 on Multi Story Housing (“Law 20/2011”), each of which has been amended by Regulation of the Government in Lieu of Law No. 2 of 2022 on Job Creation.

“Mortgage-Backed Securitization (Kredit Pemilikan Rumah - “KPR”) will be incorporated into the Omnibus Law of Draft Bill on PKP,” said Heru Pudyo Nugroho, Commissioner of the Management Agency (“BP Tapera”), to Hukumonline.

Through these regulations, the government intends to govern activities ranging from mortgage financing to the trading of KPR securities in the capital market. Until now, the securitization of KPR has been regulated under the Financial Services Authority (“OJK”) regulations.