Japanese house-builder Iida Group to launch mortgage JV in Indonesia
JAKARTA, NNA - Japanese house-builder Iida Group Holdings Co. will launch a mortgage joint venture in Indonesia with an Indonesian state-backed pension fund and other partners to make a push into the potential for a growing market.
PT Indonesia Family Finance, with a capital of 252 billion rupiah ($17.49 million), will be established in April in Jakarta and become operational in 2021.
Iida Group Holdings will own a 55.6 percent stake in the planned unit to offer home loans while the pension fund for government officials, PT Taspen, will hold 27.8 percent. Iida Group’s mortgage provider Family Life Service Co.’s stake is to be 11.1 percent and Indonesia’s sector peer PT Propernas Griya Utama 5.5 percent.
Loans to be offered by PT Indonesia Family Finance will be purchased by Indonesia’s state-owned financial institution PT. Sarana Multigriya Financial, enabling the Japanese-led loan venture to reduce the risk of being stuck in irrecoverable loans.
“We’ve determined to launch this venture with the prospects for growing demand,” a spokesman at Iida Group Holdings told NNA on Tuesday. He added that the Japanese group expects the large population, particularly young people, and increasing income in Indonesia to support such demand.
Since 2018, Iida Group Holdings’ another Indonesian joint venture, PT Perumnas Iida Group, has worked on a detached house project in Jakarta with its local partner.
The joint venture is now building houses there, while seeking new sites to launch more housing projects, according to information posted on Iida Group Holdings’ website.
The spokesman declined to disclose details such as target sales of houses that Iida Group Holdings intends to build in Indonesia.
The Tokyo-listed housing builder group has built over 520,000 detached houses and conducted similar loan business in Japan, according to the company.