TEMPO.CO, Jakarta - Coordinating Minister for Economic Affairs Darmin Nasution is convinced that the recent relaxation of house ownership credit (KPR) policy will not resulted in the increase of non-performing loan (NPL) ratio. Darmin said that banks will examine potential debtors before disbursing credits.
"[Customers] will be checked [for ] their loan affordability," Darmin said at the Coordinating Ministry for Economic Affairs office on Friday, September 20, 2019.
Darmin asserted that the decision to apply a more relaxed policy on KPR, and vehicle ownership credits is necessary to increase the public's purchasing power.
"Not just housing, but also encouraged for other sectors," Darmin said.
However, Darmin did not provide detailed information on what are the sectors that will be subject to a more relaxed policy.
Previously, Bank Indonesia has applied more lenient Loan to Value policy for the property and automotive sector. Bank Indonesia Governor Perry Warjiyo, said that the lenient policy takes the form of a 5 percent reduction in mandatory down payment ratio currently applied.
Perry explained that this will translated to lower down payment for KPR and vehicle ownership credits. "The policy will enter into force on December 2, 2019," Perry said at his office on Thursday, September 19, 2019.
However, Perry added that only banks with less than 5 percent NPL ratio that can apply the more relaxed policy. "So it will still be based on prudential principal," Perry said.