Bank Indonesia - Circular on Weighted Assets According to Risk (ATMR)

Bank Indonesia (BI) has issued a Circular that is designed to encourage and support greater amounts of credit being made available to small scale enterprises, home mortgage owners, and employees and retirees. The Circular will increase the role that banks play in driving the economy through credit approvals to the above noted individuals and groups.

The Circular sets out the weighted risk for small scale enterprises at 85% and all other conditions attached to this are those applicable in the related prevailing laws and regulations. Similarly, the weighted risk for home mortgage owners is 40% and this credit can be used for the purposes of acquiring ownership of a home or undertaking renovations. For employees or retirees the maximum credit limit is IDR 500 million and is to be guaranteed with a life insurance policy and is to be paid on a letter of authority permitting the monthly installments to be direct debited from salary or pension income.