Jumat, September 20, 2019

LTV/FTV Rates Relaxed in Bid to Boost Economic Growth

Bank Indonesia’s (“BI”) Board of Governors issued press release No. 21/68/DKom on 19 September 2019 which relaxes the following loans and financing rates: 1) Loan-to-Value/Financing-to-Value (“LTV/FTV”) ratios for property loans/financing are now 5% decreased; 2) Down payments for motor vehicles have now been relaxed in sum of 5% - 10%; and 3) An additional 5% cut has now been introduced for green LTV/FTV ratios and down-payment rates.
In addition, the following rates have now also been lowered: 1) The BI seven-day Reverse Repo Rate has been lowered by 25 bps to 5.25%; 2) The deposit-facility rate has been lowered by 25 bps to 4.50%; and 3) The lending-facility rate has been lowered by 25 bps to 6%.
From a monetary perspective, BI has now strengthened its monetary operation strategies through the introduction of the following measures: 1) Implementation of unified monetary operation strategies for state securities reverse repo (Reverse Repo Surat Berharga Negara – “RRSBN”) to all tenors (from seven days to 12 months); and 2) Auction of 12-month tenor RRSBN to replace Bank Indonesia Certificates (“SBI”), commencing 4 October 2019.
BI introduced an improved BI National Clearing System (“SKNBI”) on 1 September 2019 in a bid to accelerate and improve the efficiency of fund-transfer transactions. (bi.go.id)

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Bank Indonesia’s (“BI”) Board of Governors issued press release No. 21/68/DKom on 19 September 2019 which relaxes the following loans and financing rates: 1) Loan-to-Value/Financing-to-Value (“LTV/FTV”) ratios for property loans/financing are now 5% decreased; 2) Down payments for motor vehicles have now been relaxed in sum of 5% - 10%; and 3) An additional 5% cut has now been introduced for green LTV/FTV ratios and down-payment rates.
In addition, the following rates have now also been lowered: 1) The BI seven-day Reverse Repo Rate has been lowered by 25 bps to 5.25%; 2) The deposit-facility rate has been lowered by 25 bps to 4.50%; and 3) The lending-facility rate has been lowered by 25 bps to 6%.
From a monetary perspective, BI has now strengthened its monetary operation strategies through the introduction of the following measures: 1) Implementation of unified monetary operation strategies for state securities reverse repo (Reverse Repo Surat Berharga Negara – “RRSBN”) to all tenors (from seven days to 12 months); and 2) Auction of 12-month tenor RRSBN to replace Bank Indonesia Certificates (“SBI”), commencing 4 October 2019.
BI introduced an improved BI National Clearing System (“SKNBI”) on 1 September 2019 in a bid to accelerate and improve the efficiency of fund-transfer transactions. (bi.go.id)

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