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Jakarta Post

BI’s relaxed down payment policy gets cool response from banks, developers

  • Riska Rahman, Marchio Irfan Gorbiano and Made Anthony Iswara

    The Jakarta Post

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Jakarta   /   Mon, September 23, 2019   /  08:30 am
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Bank Indonesia announced on Thursday that it was easing down payment requirements for housing and vehicle loans by 5 to 10 percentage points (ppt) as of Dec. 2 to encourage more loans and stoke economic growth.(Shutterstock.com/Creativa Images)

Bank Indonesia's (BI) relaxed down payment regulations for vehicle loans and mortgages could be considered a “sweetener” to the economy, but doubts remain as to whether banks will immediately lower their requirements or if the policy will boost car and house sales, which are expected to jack up slower domestic consumption growth. The central bank announced on Thursday that it was easing down payment requirements for housing and vehicle loans by 5 to 10 percentage points (ppt) as of Dec. 2. The policy allows down payments of just 15 percent on motorcycle or car purchases, down from the respective 20 percent and 25 percent. Eco-friendly houses and electric vehicles will get an additional down payment relaxation of 5 ppt. BI announced its macroprudential policy on top of its decision to lower its benchmark interest rate by 25 basis points (bps) for a third consecutive ...