A 6-page presentation on why to have a secondary mortgage facility in Indonesia. The creation of a government-supported institution (an SMF) to refinance bank-originated mortgages funded through the issuance of bonds would have several beneficial effects.  First, it would provide a source of long-term financing for private banks, removing a major obstacle to mortgage investment. Second, it would facilitate investment in mortgages by pension funds and insurance companies, potentially improving their investment performance and increasing the supply of funds available for housing. Third, it would help stimulate the development of a bond market in Indonesia, which would benefit private companies and government enterprises in their efforts to raise capital.