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Jakarta Post

Central bank's easing gets cool response

  • Riska Rahman, Marchio Irfan Gorbiano and Made Anthony Iswara

    The Jakarta Post

Jakarta   /   Mon, September 23 2019   /  02:10 am

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. 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 month this year to boost slowing economic growth.“We can say that the policy mix is a much needed sweetener for banks and real estate players,” Bank Ne...