LTV and FTV Ratios for Property and Motor-Vehicle Ownership Amended

The Bank of Indonesia (“BI”) recently issued Regulation No. 21/13/PBI/2019 of 2019 (“Amendment”) on the Amendment to Regulation of BI No. 20/8/PBI/2018 on Loan-to-Value Ratios for Property Loans, Financing-to-Value Ratios for Property Financing, and Down Payments for Loans or Financing of Motor Vehicles (“Regulation 8/2018”). In essence, the Amendment aims to establish a more appropriate set of macroprudential policies while simultaneously encouraging development within the green economy by revising various provisions originally set under Regulation 8/2018,[1] specifically as they relate to the following matters: