Jakarta, July 28 -- State-owned Bank Tabungan Negara (BTN) says banks can offer Housing Financing Liquidity Facility (FLPP) mortgages for up to 40 years because the government provides most funding.

BTN Director Hirwandi Gafar said the funding structure allows banks to extend long-term financing to low-income households.

"Banks are certainly capable of providing FLPP financing because most funding comes from the government through housing financing facilities," Gafar said on Tuesday.

He said the financing is relatively safe for banks as long as the government places funds for the duration of the loans.

"Regardless of the loan term, as long as the government places funds with banks throughout that period, the financing is relatively sa...