OJK: Regulatory Support Is Expected To Give Banking Space In The Distribution Of Mortgages

Photo: Doc. Antara

JAKARTA - Head of the Department of Licensing and Crisis Management of the Financial Services Authority (OJK)turbative Lubis said that the support for various regulations issued by the authorities is expected to provide space for banks in the distribution of home ownership loans (KPR).

"With the rules (issued by the OJK), we hope that this can loosen or provide space for banks to distribute credit," saidphetamine in the "Dialogue on Funding Solutions for the 3 Million Houses" in Jakarta, quoted from Antara, Monday, December 17.

One of the regulations to support the growth of the national housing market is that there is no prohibition for banks to channel credit for land acquisition or processing to developers.

This is as stated in OJK Regulation (POJK) No.27/2022 which revoked POJK No.44/2017 jo. POJK No.16/2018 which regulates restrictions on lending for land procurement/processing.

"As is known, if we end up debitors or end consumers, we can't buy lots of houses to get credit from the bank. But for this developer it can be done," he said.

Then, OJK has also issued POJK No.32/POJK.03/2018 jo. POJK No.38/POJK.03/2019 which allows the provision of funds in the context of housing procurement can be granted a maximum credit payment limit (BMPK) exemption in terms of guaranteed by state-owned enterprises or BUMN and BUMD insurance.

For land acquisition, for example, for developers, a large amount of funds is needed. In that context, later it can be excluded from the bank's BMPK," added fire.

Support in the form of further regulations, namely SEOJK No.24/SEOJK.03/2021 concerning Calculation of Weighted Activities According to Risk (ATMR) Credit Risk with the Standard Approach. With this regulation, the risk weight of home-owned loans is based on loan to value (LTV) ratio. Through the weight of granular risk, the smaller the LTV, the smaller the LTV, the lower the weight of the ATMR Credit.

"So if Bank Indonesia regulates the loan to value to be smaller, then the weight in the ATMR will later affect the capital needed for the credit, which is also smaller," he said.

He added that there are also regulations that support the determination of the quality of productive assets based on one pillar as stated in POJK 40/POJK.03/2019 concerning Commercial Bank Asset Quality Assessment. The determination of the quality of productive assets for debtors with a ceiling of up to IDR 5 billion is only based on one pillar, namely the accuracy of principal payments and/or interest.

He explained that there are three pillars used by banks to test whether they are suitable or not like debtors, including business prospects, the ability to pay, and the installments they have. Especially for low-income people (MBR) in the context of mortgages, only one pillar applies, namely the ability to pay.

"Unfortunately, this is also what we both know, for the people of MBR this ability is lacking. So indeed if you rely on banking funds to help meet housing needs for MBR, it is very difficult," he said.

You agree that a very large amount of funding is needed to help the people of the MBR group to be able to own a house. Meanwhile, the largest funds in banking are short-term funds so that there will be a very large mismatch between funds raised by banks to meet long-term needs.

"Referring to the price to income ratio data in 2023, UMP data compared to his (community) ability to pay for livable houses, the highest is 73 years in Surabaya and the shortest in Bekasi is 22 years," he said.

"Then if you look at the per capita income side, the shortest is 4 years in Central Jakarta and the longest is 37 years in Depok. That is, we need very large funds to help low-income people," said fire.