BI Governor Perry Warjiyo Brings Good News, 0 Percent Downpayment Policy For Motorized Vehicles And Houses Is Planned To Be Extended

JAKARTA - Bank Indonesia (BI) Governor Perry Warjiyo opened the opportunity for an extension of the zero percent down payment (DP) policy for Motor Vehicle Loans (KKB) and Home Ownership Loans (KPR) until 2023.

"The possibility can be extended until 2023 in accordance with the provisions to ensure credit and financing from the financial sector to the business world can continue to support the national economic recovery," Perry said at the online press conference of the Financial System Stability Committee (KSSK) in the third quarter of 2021, quoted from Antara, Thursday 28 October.

Currently, he said the easing of the zero percent down payment policy for KPR and KKB was decided to apply until the end of 2022, in accordance with Law No. 2 of 2020.

The zero percent down payment for KKB will apply to all types of new motorized vehicles.

Meanwhile, for mortgages, Perry said the down payment to be at least zero percent to the public can be given by banks that have a policy of easing the loan to value/financing to value (LTV/FTV) ratio to a maximum of 100 percent.

"This policy is only given to banks that meet certain non-performing loans/non-performing financing (NPL/NPF) ratios," he said.

On the other hand, he emphasized that the policy for transparency of the basic lending rate (SBDK) will also continue to be strengthened by deepening the assessment of the transmission of SBDK and new lending rates per sector and sub-sector of the economy.

Thus, the central bank welcomes the steps taken by banks to continue lowering interest rates and invites banks to lower interest rates, as part of a joint effort to recover the national economy.