OJK Loosens LTV Regulation
27 May 2015 15:50 WIB
TEMPO.CO, Jakarta - Muliaman D. Hadad, Chief of the Board of Commissioner of the Financial Services Authority (OJK), said that the OJK's policy on loan-to-value for house ownership financing services will not be as stringent as it was originally planned. Muliaman said that the new regulation has been discussed by Bank Indonesia and the OJK, and will be issued on June 2015.
Muliaman said that the new regulation will continue to be evaluated later in the future. Muliaman however, refused to provide detailed information concerning the revision, which include the reduction of down payment for house ownership from the previous 30 percent of the house’s price, to 10-20 percent of the house’s price.
"Ten percent is too small. Just wait for the announcement," said Muliaman.
The revision was made following the economic slowdown in the first quarter of 2015. The slowdown had caused dropping number of sales in the property and automotive sector in Q1.
ADITYA BUDIMAN