The National Home Mortgage Finance Corp. (NHMFC) has introduced to the Indonesian government the corporation’s BALAI BERDE, a housing program designed to increase capital allocations for green projects that contribute to environmental sustainability and resiliency to climate change and natural disasters.
Carlo Luis Rabat, NHMFC president, tackled this at a panel discussion “The Role of Housing Finance in Responding to the Challenges of Climate Change” held virtually recently.
The event was organized by PT. Sarana Multigriya Finansial (Persero)/SMF, the government of Indonesia’s secondary mortgage institution, and also a co-member of NHMFC in the Association of Asian Secondary Mortgage Market Organization.
BALAI BERDE is the newest program of NHMFC and the first of its kind among the government’s key shelter agencies (KSA) under the Department of Human Settlements and Urban Development (DHSUD).
Rabat emphasized that BALAI BERDE is a new platform that provides liquidity facility to any public or private housing loan originators who construct, retrofit and finance any green certified housing units or residential buildings. To qualify for this program, the housing loan portfolio subject for purchase must receive a green building certification from Excellence in Design for Greater Efficiency (EDGE) or any green certifying bodies.
Rabat said a few years ago, there was reluctance to green buildings and green economy which may be born from a belief that the process is too expensive and time consuming.
“But now, there are many reasons to pursue it this time. Green buildings emit fewer greenhouse gases, consume less energy, use less water, and offer occupants healthier environments than do typical buildings,” he said.
Rabat added he believes a green economy ensures sustainable development and infrastructure resilience.
Sid Herdi Kusuma, SMF senior vice president and head of Securitization, expressed their appreciation to NHMFC for imparting its experience and best practices on green projects, which they can replicate in their country.
NHMFC is slated to showcase the BALAI BERDE Program at the International Finance Corp.’s World Green Building Week 2021 this month.