Swan.my.id - Jakarta, Bank Indonesia is expanding support for housing finance by widening the underlying assets eligible for bank repo transactions with the central bank. The policy includes securities and debt instruments issued by PT Sarana Multigriya Finansial (Persero), or SMF.
The measure is part of Bank Indonesia's efforts to strengthen liquidity in the property and housing sector. In cooperation with the Ministry of Finance, the central bank has introduced the expanded repo scheme to give banks greater flexibility in managing their liquidity while holding SMF securities.
Bank Indonesia Governor Destry Damayanti said the policy has already produced a significant impact on housing finance liquidity. As of the latest disclosure, banks had repoed SMF securities with Bank Indonesia worth Rp1.25 trillion.
Bank Indonesia's Repo Facility Reaches Rp1.25 Trillion
Destry explained that the expanded underlying repo policy allows banks to use eligible SMF securities as collateral when seeking liquidity from Bank Indonesia. Therefore, banks holding the securities can access fresh liquidity more efficiently when needed.
The policy for SMF securities was introduced on September 26, 2025. Since then, banks have begun using the facility, with the total value of SMF securities repoed to Bank Indonesia reaching Rp1.25 trillion, according to Destry's statement.
The governor highlighted the development during a joint press conference with Minister of Housing and Settlement Areas Maruarar Sirait at Bank Indonesia's headquarters in Jakarta on Friday, October 2, 2026. The discussion focused on efforts to strengthen financing support for the housing sector.
The repo mechanism provides banks with an additional liquidity channel. In practice, banks that hold SMF debt securities can pledge those assets to Bank Indonesia and obtain liquidity against the securities.
SMF Bond Transactions Rise Nearly Sixfold
The impact of the policy has also appeared in the secondary market for SMF securities. Bank Indonesia recorded a sharp increase in the average daily transaction value of SMF debt securities after the facility was introduced.
Under normal conditions, daily transactions stood at around Rp31 billion. The figure has since increased to approximately Rp180 billion per day. This means the average daily transaction value has risen nearly sixfold compared with the previous level.
The increase indicates stronger activity in the secondary market for SMF securities. Moreover, the development gives market participants greater room to transact these instruments while supporting the broader objective of financial market deepening.
According to Destry, the increase in transactions is not only relevant to financial market development. It also has a direct connection with the availability of funding for the housing sector.
- The average daily transaction value increased from around Rp31 billion to Rp180 billion.
- The increase represents nearly six times the previous daily transaction level.
- Banks have repoed SMF securities to Bank Indonesia with a total value of Rp1.25 trillion.
- The facility provides banks with an additional way to obtain liquidity using eligible SMF securities as collateral.
Why SMF Funding Matters for Housing Finance
SMF plays an important role in the housing financing ecosystem. The institution operates as a secondary housing finance company with quasi-government status and supports the availability of longer-term liquidity for banks that distribute housing loans.
Banks that provide mortgages, or KPR, require access to adequate funding to maintain lending activity. Therefore, mechanisms that strengthen liquidity can support the broader financing structure behind the housing market.
The expanded repo facility adds flexibility to that structure. When banks can use eligible SMF securities to obtain liquidity from Bank Indonesia, those securities can serve a more active function within the financial system.
At the same time, the increase in secondary-market transactions suggests that SMF securities are becoming more actively traded. As a result, the policy has an impact beyond the individual liquidity needs of participating banks.
Policy Supports Financial Market Deepening
Bank Indonesia views the policy as part of efforts to deepen the financial market while maintaining support for housing finance. The rise in SMF security transactions provides an early indication of increased market activity following the expansion of repo eligibility.
A more active secondary market can provide greater opportunities for transactions involving financial instruments. In this case, the increased trading activity is connected to securities issued by SMF and their role in supporting housing-sector funding.
The policy also demonstrates how coordination between Bank Indonesia and the Ministry of Finance can be used to strengthen financing channels. The collaboration focuses on improving liquidity while maintaining the connection between financial-market instruments and housing finance.
However, the available figures primarily show the initial impact of the expanded repo facility. The Rp1.25 trillion repo value and the increase in daily SMF transactions provide measurable indicators of market activity, while the longer-term effect on housing financing will depend on how the facility continues to be used.
Housing Finance Remains a Key Focus
The latest policy development places liquidity at the center of efforts to support housing finance. For banks, access to additional liquidity can provide greater flexibility when managing assets and funding needs.
Meanwhile, SMF securities have gained a more active role in the financial market. Their use as eligible collateral for repo transactions gives banks another mechanism for converting financial assets into liquidity through Bank Indonesia.
The increase from Rp31 billion to Rp180 billion in average daily transactions also shows how quickly market activity can respond to changes in financial-market facilities. Moreover, the development connects secondary-market activity with the broader objective of supporting housing-sector financing.
For the housing finance ecosystem, the policy is therefore relevant because SMF serves as a source of long-term liquidity for banks involved in mortgage lending. Stronger liquidity support can help maintain the financial infrastructure needed by the housing sector.
Conclusion
Bank Indonesia's expansion of repo eligibility for SMF securities has increased liquidity access for banks and stimulated activity in the secondary market. Banks have repoed SMF securities worth Rp1.25 trillion, while average daily SMF transactions have climbed from around Rp31 billion to Rp180 billion.
The development is significant for the housing finance ecosystem because SMF plays a role in providing long-term liquidity for banks that distribute KPR. In addition, the stronger trading activity supports Bank Indonesia's broader objective of deepening the financial market.
Going forward, the utilization of the facility will remain important to watch as banks continue to manage liquidity and as SMF securities play a larger role in housing-sector financing.
FAQ
What is the Bank Indonesia repo facility for SMF securities?
It is a facility that allows banks holding eligible SMF securities to use those assets as collateral to obtain liquidity from Bank Indonesia.
How much SMF securities have banks repoed to Bank Indonesia?
According to Governor Destry Damayanti, banks have repoed SMF securities to Bank Indonesia with a total value of Rp1.25 trillion.
How have SMF security transactions changed?
Average daily transactions increased from around Rp31 billion to Rp180 billion, representing an increase of nearly six times.
Why is SMF important for housing finance?
SMF acts as a secondary housing finance institution with quasi-government status and supports long-term liquidity for banks that provide housing loans.
