JAKARTA - Chairman of the Board of Commissioners of the Financial Services Authority (OJK) Mahendra Siregar said, to support the financing program of 3 million houses for the community, banks must have alternative sources of funding to be able to meet liquidity, namely by utilizing the Asset Weaving Effect (EBA) instrument in the form of a Participation Letter (SP).
Mahendra added that liquidity support was also carried out through the issuance of instrument securities for the participation letter (EBA SP).
According to him, the potential for optimizing the EBA SP is still very large, and OJK together with relevant stakeholders will continue to strengthen and perfect the EBA SP scheme in the capital market.
"With these various policy supports, we are optimistic that the government's program to provide 3 million housing for low-income people can be carried out properly," he said at a press conference, Tuesday, January 14.
In addition, Mahendra said that OJK also continues to expand its mandate to strengthen and develop the financial services sector in Indonesia.
On the same occasion, Chief Executive of OJK Banking Supervision Dian Ediana Rae million also highlighted the role of the capital market through the issuance of Asset-Used Securities (EBA) in the form of Participation Letters (EBA-SP), which are a collection of mortgages and can be a fixed income investment instrument traded in the secondary market.
Dian hopes that this instrument can complement funding sources and help maintain bank liquidity stability.
Based on data from the Indonesia Stock Exchange as of January 13, 2025, there are 9 EBA-SPs traded with a total value of IDR 2.21 trillion.
Dian also emphasized that banks participating in this program can take advantage of a number of incentives, such as down payment subsidies (SDUM) to increase the loan to value ratio (LTV) for prospective debtors and debtors and debt minimum risk exposure (ERM).
Dian added, OJK also provides flexibility in calculating credit quality and excludes the maximum limit of lending for MBR housing.
"With this incentive, we hope that banks can optimize their role to support the achievement of the 3 million government housing program," he said.
Furthermore, Dian said, he would communicate with the Financial System Stability Committee.
"Because there are monetary policies and fiscal policies related to these issues," he said.
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Until November 2024, banking liquidity conditions were considered adequate with an AL/NCD ratio of 112.94 percent, an AL/DPK of 25.57 percent, and a Liquidity Coverage Ratio (LCR) of 213.07 percent. Meanwhile, the Loan to Deposit Ratio (LDR) is at the level of 87.34 percent.
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