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Ada Pertanyaan? Hubungi Kami ANT, Andin Aditya Rahman
Bank Indonesia’s (BI) recentregulation on loan-to-value (LTV) ratios for home mortgages has been perceived as an effort to suppress speculators in the Indonesian property sector.
“The announcement of a new BI regulation on LTV is a preemptive step that must be taken in anticipation of the potential negative impacts of a price bubble,” stated Anton Sitorus, Head of Research at Jones Lang LaSalle Indonesia at its “Quarterly Media Briefing” given in Jakarta last Wednesday.
BI announced that its regulation on LTV will take effect on 1 September 2013. This regulation, which only applies to homes with an area of more than 70 square meters, sets the LTV for second home mortgages at 60 percent, and the LTV of third home mortgages at 50 percent.
Another way to anticipate property price bubbles, Anton continued, is to apply a progressive tax regime with higher tax rates applied to every additional home mortgage. Other than that, price bubbles can also be dealt with by improving and monitoring financial regulations.
Ali Tranghanda, Executive Director of Indonesia Property Watch, asserted that the LTV regulation must integrate smoothly with regulations on housing for low-income earners.
“The problem is that the new LTV regulation does not directly coalesce with existing regulations on lower and middle housing,” stated Ali.
In response, Perry Warjiyo, Deputy Governor of BI, stated that BI will continue to monitor credit growth in the property sector. He added that the trend for t growth in home and apartment mortgages had continued in April this year.
“Our monitoring of property credit development and home mortgage growth for housing above 70 square meters in April 2013 indicates an increase of 45.1 percent. This represents a 39.8 percent increase compared to March 2013,” stated Perry at the BI building in Jakarta last Thursday.
Despite these viewpoints, Tardi, Coordinator for Consumer Finance at Bank Mandiri, believes that the new LTV regulation will only affect credit growth temporarily.
“There will be an impact, but only temporarily. Further down the track there will be a new balance, similar to the regulation on the level of deposits. Things will slow down for a month or so, but later will be return to the same pattern because of the high demand for housing,” explained Tardi.
(hot/kc)
ANT, Andin Aditya Rahman
Bank Indonesia’s (BI) recentregulation on loan-to-value (LTV) ratios for home mortgages has been perceived as an effort to suppress speculators in the Indonesian property sector.
“The announcement of a new BI regulation on LTV is a preemptive step that must be taken in anticipation of the potential negative impacts of a price bubble,” stated Anton Sitorus, Head of Research at Jones Lang LaSalle Indonesia at its “Quarterly Media Briefing” given in Jakarta last Wednesday.
BI announced that its regulation on LTV will take effect on 1 September 2013. This regulation, which only applies to homes with an area of more than 70 square meters, sets the LTV for second home mortgages at 60 percent, and the LTV of third home mortgages at 50 percent.
Another way to anticipate property price bubbles, Anton continued, is to apply a progressive tax regime with higher tax rates applied to every additional home mortgage. Other than that, price bubbles can also be dealt with by improving and monitoring financial regulations.
Ali Tranghanda, Executive Director of Indonesia Property Watch, asserted that the LTV regulation must integrate smoothly with regulations on housing for low-income earners.
“The problem is that the new LTV regulation does not directly coalesce with existing regulations on lower and middle housing,” stated Ali.
In response, Perry Warjiyo, Deputy Governor of BI, stated that BI will continue to monitor credit growth in the property sector. He added that the trend for t growth in home and apartment mortgages had continued in April this year.
“Our monitoring of property credit development and home mortgage growth for housing above 70 square meters in April 2013 indicates an increase of 45.1 percent. This represents a 39.8 percent increase compared to March 2013,” stated Perry at the BI building in Jakarta last Thursday.
Despite these viewpoints, Tardi, Coordinator for Consumer Finance at Bank Mandiri, believes that the new LTV regulation will only affect credit growth temporarily.
“There will be an impact, but only temporarily. Further down the track there will be a new balance, similar to the regulation on the level of deposits. Things will slow down for a month or so, but later will be return to the same pattern because of the high demand for housing,” explained Tardi.
(hot/kc)