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BI Sets 0% Down-Payment Rate for Environmentally Friendly Motorized Vehicles

Manufacturing & IndustryMonetary and Payment System
  • Through the issuance of Regulation of Bank Indonesia (“BI”) No. 22/13/PBI/2020 of 2020, Indonesia’s central bank has now set a down-payment rate of 0% for environmentally friendly motorized-vehicle credit/financing (kredit/pembiayaan kendaraan bermotor – “KKB/PKB”), which will come into effect on 1 October 2020.
  • Onny Widjanarko, the Head of BI’s Communications Department, recently stated that this new rate was being implemented as a follow up to a decision that was made during a recent BI Board of Governors Meeting (Rapat Dewan Gubernur – “RDG”) to lower the minimum the down-payment limit from the range of 5% - 10% to 0% for KKB/PKB for environmentally friendly motorized vehicles in the hope of boosting economic development amid a background of mitigated credit and financing risks, as well as to encourage a balanced and high-quality banking intermediation function and also to support the burgeoning green economy.
  • Mr. Widjanarko also emphasized that the 0% rate is to be implemented in compliance with prudential principles. (ANT)
......

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  • Through the issuance of Regulation of Bank Indonesia (“BI”) No. 22/13/PBI/2020 of 2020, Indonesia’s central bank has now set a down-payment rate of 0% for environmentally friendly motorized-vehicle credit/financing (kredit/pembiayaan kendaraan bermotor – “KKB/PKB”), which will come into effect on 1 October 2020.
  • Onny Widjanarko, the Head of BI’s Communications Department, recently stated that this new rate was being implemented as a follow up to a decision that was made during a recent BI Board of Governors Meeting (Rapat Dewan Gubernur – “RDG”) to lower the minimum the down-payment limit from the range of 5% - 10% to 0% for KKB/PKB for environmentally friendly motorized vehicles in the hope of boosting economic development amid a background of mitigated credit and financing risks, as well as to encourage a balanced and high-quality banking intermediation function and also to support the burgeoning green economy.
  • Mr. Widjanarko also emphasized that the 0% rate is to be implemented in compliance with prudential principles. (ANT)
......

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