The Jakarta Post
CIMB Niaga, Indonesia’s fifth-biggest lender, has acknowledged that its business was affected by the minimum down payment limit set by Bank Indonesia (BI), saying that it has seen a significant decrease in housing loans since the policy was implemented by the central bank in July.
Since BI increased the minimum loan-to-value (LTV) ratio for housing loans from 80 percent to 70 percent, the bank has channeled only Rp 200 billion (US$20.86 million) in housing loans every month, approximately 20 percent less than its average monthly figure, according to CIMB Niaga’s head of consumer lending, Tony Tardjo.
“Despite the decrease, we fully comply with the LTV rule. We support the rule because it increases the healthiness of credit portfolio of domestic banks,” he said on Wednesday.
Although part of the decrease was due to fewer housing sales from July to September du...