The Financial Services Authority (OJK) has released new policy packages to stimulate growth in property sector, financial technology and exports amid global turmoil that has affected the domestic economy.

To boost the property sector, the OJK has adjusted risk weight assets (ATMR) for the financing of the housing sector in order to support Bank Indonesia’s policy regarding home loans, which is the loan-to-value (LTV) ratio.

In the new policy, the OJK will apply the amount of ATMR differently, depending on the LTV ratio set by the bank. Basically, the higher the LTV ratio, the higher the ATMR.

In detail, the ATMR will be 20 percent for an LTV ratio of up 50 percent; 25 percent for an LTV ratio of above 50 percent and 35 percent for an LTV ratio of 70 to 100 percent.

“In the previous policy, the ATMR was 35 percent. The new rule is more granular. Thus, if the risk weight is lower, then the LTV is lower,” said Heru Kristiyana, OJK deputy banking commissioner, on Wednesday.

Moreover, the OJK also allows credit disbursement to property developers for land acquisition processes. However, the requirements were that the land has to be developed within one year, used to construct landed houses or low-cost apartments and not located in commercial areas.

The rule aimed to stimulate middle to low property developers that usually have difficulties borrowing money from banks to build houses.

Wimboh Santoso, OJK chairman, said growth in the housing sector needed to be accelerated because it could become a multiplier effect for other industries.

“[The government] has worked on building massive infrastructure projects. But if this is not accompanied by incentives for property developers, the effect on economic growth would be slow,” he said.

Bank Tabungan Negara (BTN) finance director Iman Nugroho Soeko said the new policy would provide incentives for the banking sector to disburse more loans for the property sector.

Apart from supporting the property sector, the OJK will help support the fintech industry by releasing a new regulation regarding digital finance innovations and also launching a fintech center soon.

Nurhaida, OJK vice chairperson of the board of commissioners, said the agency would regulate mechanism of registering fintechs with the OJK, regulatory sandbox and licensing process. She said the new policy would also regulate customers’ data protection and money laundering.

On Wednesday, the OJK also issued new policies to boost exports and increase foreign exchange. One of them was by giving incentives to financial institutions that disburse loans to export-oriented industries and tourism through prudential regulations such as ATMR and maximum lending limit (BMPK).

Additionally, the regulator also created a policy to revitalize the role of the Indonesian Export Financing Agency (LPEI) so the latter can be more focused on export-oriented financing. Also, the role of the LPEI to provide hedging instruments for export transactions will be increased.

The OJK also facilitates financing sources from the capital market to develop 10 strategic tourism areas, outside Bali.

“The OJK also facilitates cluster KUR [microcredit programs] for developing small and medium enterprises in the tourism sector, in collaboration with the Office of the Coordinating Economic Minister,” Wimboh said.