Property & LTV Policy

Indonesia’s central bank (Bank Indonesia/BI) has recently relaxed the loan-to-value (LTV) ratio in order to maintain domestic economic recovery momentum and financial system stability, keeping into account the prudential principles and consumer protection. The policy will be effective August 1, 2018. By lowering down payment obligations for the consumer, BI aims to make it more attractive for consumers to purchase property using House Ownership Credit (KPR), hence boosting overall credit growth as well as Indonesia‚Äôs macroeconomic growth.

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