On Feb. 26, IDN CB amended LTV, FTV ratio for property financing.
IDN CB made amendment concerning loan to value ratio for property loans, financing to value ratio for property financing, advances for credit or financing motor vehicle.
Due to accommodative macroprudential policies needed to encourage banking sector to carry out balanced, quality intermediation function, for national economic recovery.
Financing
For banks that meet requirements for non-performing loan (NPL)/non-performing financing (NPF), the LTV/FTV ratio limit will be a maximum of 100% for all property.
For banks that do not meet NPL/NPF requirements, the LTV/FTV limits are specified.
For banks that meet NPL/NPF requirements, the down payment limit for motor vehicle financing is at least 0% for all types of vehicles, both productive and non-productive.
For banks that do not meet NPL/NPF requirements, down payment limits are specified.
The limits on down payments also apply for environmentally sound motorized vehicles.
Effectiveness
Regulation comes into force on the date of promulgation, and expires Dec. 31, 2021.
Mar. 2021 LTV/FTV Terms
On Mar. 2, 2021, IDN CB issued press release on regulation number 23/2/PBI/2021.
Decision was part of the financial system stability committee (KSSK) in the integrated policy package for increasing business financing for acceleration of economic recovery.
Apr. 2021 Second Amendment
On Apr. 5, 2021, IDN CB issued regulation 23/6/PADG/2021 concerning the second amendment to regulation 21/25/PADG/2019, in connection with LTV/FTV changes.
Dec. 2021 Third Amendment
On Dec. 3, 2021, IDN CB issued regulation 23/26/PADG/2021 dated Nov. 24, the third amendment to regulation 21/25/PADG/2019, to continue to encourage credit growth.
The period for LTV/FTV ratio and advances for credit is extended to Dec. 31, 2022.
This third amendment shall come into effect on Jan. 1, 2022.
Dec. 2022 Fourth Amendment
On Dec. 6, 2022, IDN CB issued regulation 24/16/PADG/2022, which is the fourth amendment to regulation 21/25/PADG/2019 to further support economic recovery.
The amendment provides more accommodative macroprudential policies in the form of continuing to ease the LTV ratio for property loans and FTV ratio for property financing.
As well as advances for motor vehicle credit or financing to encourage growth.
This fourth amendment shall come into effect on Jan. 1, 2023.
Dec. 2023 Fifth Amendment
On Dec. 4, 2023, IDN CB issued regulation number 19 of 2023 which is the fifth amendment to regulation 21/25/PADG/2019 to further support economic recovery.
In the amendment, IDN CB provides accommodative macroprudential policies to encourage the distribution of credit or banking financing to the business world.
It also continues to relax the LTV ratio for property credit (KP), FTV ratio for property financing (PP), and down payments for motor vehicle credit or growth financing.
This fifth amendment shall come into effect on Jan. 1, 2024.
Document dated Dec. 4, 2023, received from IDN CB Dec. 7, summarized on Dec. 11.
Dec. 2024 Sixth Amendment
On Dec. 10, 2024, IDN CB issued an extension of relaxed LTV and down payment requirements through Dec. 31, 2025, as per the regulation above dated Dec. 4, 2023.
Requirements apply to both conventional, environmentally friendly properties/vehicles.
In addition, IDN CB issued frequently asked questions (FAQs) about the extension.
This new regulation number 19 of 2024 is effective as of Jan. 1, 2025.
