Ada Pertanyaan? Hubungi Kami 
Ada Pertanyaan? Hubungi Kami ANT, Robert Sidauruk
Bank Indonesia’s (BI) policy to tighten requirements to obtainhome loans (Kredit Pemilikan Rumah- “KPR”) through introducing a progressive loan to value (LTV) ratio, has spawned criticism from lawmakers.
Riswan Tony, lawmaker of Commission V at the House of Representative (DPR), voiced his criticism that such a policy will be a significant burden on the community, especially on new households.
“This group of people, which are generally first-time home buyers, will have difficulty in getting a KPR loan due to the progressive LTV ratio,” said Riswan on Tuesday.
Under the current framework, KPR applicants for houses with an area up to 70 m² must make a deposit equal to 30% of the property purchase price. Further, under the progressive LTV ratio system, the deposit required for borrowers who are second-time home buyers is 40% of the purchase price and for third-time home buyers 50%.
“In terms of social welfare, this advance payment system may be burdensome for a large number of people,” Riswan asserted.
Riswan also pointed out the lack of communication between the Government and property associations such as the Indonesian Housing and Developers Association (Apersi) and Realestat Indonesia (REI).
“If good communication between the Ministry of Public Housing and those associations is maintained, the housing problem can be easily resolved,” Riswan emphasized.
In contrast, Toni A Prasetiantono, economist from Gadjah Mada University, is of the view that BI’s policy to impose a progressive LTV ratio is needed to maintain the soundness of banks.
“Sure there will be a slowdown inloan applications, but this will increase banks’ soundness,” Toni explained.
Toni also believes that significant numbers of creditors are using the KPR program for property speculation, putting banks in a vulnerable position if defaults arise.
“The current trend among KPR creditors is to use KPR loans for investment and speculation purposes, just like stocks. Therefore, it is important for BI to limit the maneuvering room for borrowers who participate in more than one KPR program,” Tony concluded.
(hot/kc)
ANT, Robert Sidauruk
Bank Indonesia’s (BI) policy to tighten requirements to obtainhome loans (Kredit Pemilikan Rumah- “KPR”) through introducing a progressive loan to value (LTV) ratio, has spawned criticism from lawmakers.
Riswan Tony, lawmaker of Commission V at the House of Representative (DPR), voiced his criticism that such a policy will be a significant burden on the community, especially on new households.
“This group of people, which are generally first-time home buyers, will have difficulty in getting a KPR loan due to the progressive LTV ratio,” said Riswan on Tuesday.
Under the current framework, KPR applicants for houses with an area up to 70 m² must make a deposit equal to 30% of the property purchase price. Further, under the progressive LTV ratio system, the deposit required for borrowers who are second-time home buyers is 40% of the purchase price and for third-time home buyers 50%.
“In terms of social welfare, this advance payment system may be burdensome for a large number of people,” Riswan asserted.
Riswan also pointed out the lack of communication between the Government and property associations such as the Indonesian Housing and Developers Association (Apersi) and Realestat Indonesia (REI).
“If good communication between the Ministry of Public Housing and those associations is maintained, the housing problem can be easily resolved,” Riswan emphasized.
In contrast, Toni A Prasetiantono, economist from Gadjah Mada University, is of the view that BI’s policy to impose a progressive LTV ratio is needed to maintain the soundness of banks.
“Sure there will be a slowdown inloan applications, but this will increase banks’ soundness,” Toni explained.
Toni also believes that significant numbers of creditors are using the KPR program for property speculation, putting banks in a vulnerable position if defaults arise.
“The current trend among KPR creditors is to use KPR loans for investment and speculation purposes, just like stocks. Therefore, it is important for BI to limit the maneuvering room for borrowers who participate in more than one KPR program,” Tony concluded.
(hot/kc)