TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Eco-housing projects must obtain green certificates to benefit from incentives
In December, 2019 BI lowered the loan-to-value (LTV) ratio by 5 percent for environmentally friendly housing to 90 percent to promote the development of green housing in the country. With the lower LTV ratio, buyers will only need a down-payment of 10 percent when applying for mortgages from banks, down from 15 percent previously.
Change Size
Green building: The Alamanda Tower in Cilandak, South Jakarta, is one of the few buildings in Jakarta that have applied environmentally friendly standards set by the Green Building Council Indonesia’s Greenship certification in the existing building category. (Courtesy of Alamanda Tower/-)
E
co-housing projects will need to obtain green certification in order to be able to benefit from the government’s financial incentives, such as those provided by Bank Indonesia (BI).
The central bank’s macroprudential policy department director, Widi Agustin, said property projects that are claimed as environmentally friendly should obtain a green certificate to ensure that they meet the standards set by the government.
"An environmentally friendly property is a property that meets green building criteria, which meet international and national standards," Widi said at a seminar on the outlook of the property business in 2020 in Jakarta on Thursday.
In December, 2019 BI lowered the loan-to-value (LTV) ratio by 5 percent for environmentally friendly housing to 90 percent to promote the development of green housing in the country. With the lower LTV ratio, buyers will only need a down-payment of 10 percent when applying for mortgages from banks, down from 15 percent previously.
“Policies regarding this green economy are new but we have seen the development out there. The concerns over SDGs [Sustainable Development Goals] are already worldwide, with one of them being an environmentally friendly economy,” Widi.
The World Green Building Council has written on its site that green buildings address a number of SDGs at once. Green buildings are seen as “an opportunity to not only save energy, water and carbon emissions, but to educate, create jobs, strengthen communities, improve health and wellbeing, and much, much more”.
In order for the policy to have the impact it is hoped, a set of standards is put in place. In Indonesia, a green building has to comply with either the Public Works and Housing Ministry Regulation No. 2/2015 on green buildings or the rating system of Greenship by the Green Building Council Indonesia or other acclaimed standards, for example, EDGE from the International Finance Corporation (IFC) and Green Mark from Singapore.
