Mortgages on the Left Are Not Enough

Speakers in the Event "Mortgage Business Outlook After Relaxing LTV: How Do Developers and Banks Take Opportunities?" at the Shangri La Hotel, Jakarta, Thursday (12/7). Photo: MJR

The policy of loosening housing loan (KPR) or ready to value (LTV) that Bank Indonesia (BI) will soon be considered insufficient to boost housing sales. This is due to many factors that continue to hobble such as regulation, licensing, taxation, land use planning, investment cooperation, markets capital, land and infrastructure.

This was stated by the chairman of the Central Board of the Indonesian Real Estate Company (REI), Soelaeman Soemawinata at the event "Business Outlook mortgage after relaxation LTV: How developers and banks take opportunities?" At the Shangri La Hotel, Jakarta, Thursday / 7/2018).

"The LTV is a panacea, but it's not the only elixir. The reason is that there's still plenty going on. 39 other factors in the real estate sector that directly affect such as space, land, regulation, licensing, taxation, investment cooperation, capital market and the Read also: Release the rules, Free banking determine progress KPR as long

It continued these factors are still considered to be hindering sales activities of goods.For example, there are still licensing issues to which are facing developers who are canceling their investment in Indonesia. "There are foreign investors who want to develop projects in Indonesia, but they are back home because the baseball license lasted three or four years, "said Soe

For Soelaeman, the problem is very worrying for real estate activities as this industry is linked to other sectors. Therefore, he hopes that there will be an integrated policy so that the real estate sector can grow. Based on the results of the REI study and the Indonesian Institute of Management, the real estate sector contributes to 174 followers of the industry

A similar opinion was also expressed by PT Bank's director of consumer banking, Tabungan Negara (Persero), Budi Satria. According to him, the granting of complicated licenses to administrative fees such as the processing of certificates also hindered the sale of goods. Thus, he hopes that the regulator will allow the public to manage the administration more easily.

"The licensing and certification process also costs a lot," complained Mr. Budi

.

Nevertheless, Budi welcomes the positive BI policy that loses mortgage advances up to 0% because amid high interest rates, stimulus is currently needed to stimulate growth in bank financing in the real estate sector. "We hope that the LTV policy will be able to stimulate real estate growth much more quickly," he hopes.

A positive response was also provided by PT Bank Consumer Manager Rakyat Indonesia (Persero), Handayani. For him, in addition to boosting the sale of the first home, this policy has also had a positive impact on the sale of new properties.

"The new LTV policy is becoming a boost for the FK (credit facilities) market segment that, some time ago, has not moved. the population that wants to invest in the real estate sector, "he said.

Earlier, Filianingsih Hendarta, deputy director of BI's Macroprudential Policy Department, explained that the down payment should encourage growth in public consumption in the real estate sector. He explained that amid high interest rates this new policy could become a stimulus for public consumption. [1965900]]

"In the area k o ntr csi present must have a credit stimulus.We see that the growth of mortgages is still in a phase that can be accelerated.Based on previous experience in 2015 and 2016, LTV's easing policy is able to encourage the growth of real estate consumption, "said Filianingsih at from his visit to the BI Office Building Complex, Jakarta, on 27/07/2018.

With this relaxation LTV, Filiani explained that banks can determine their own amount of money. Mortgage advance considering their liquidity portfolio and debtor .In fact, said Filiani, banks can deposit a mortgage deposit up to 0%.

" Through this policy, we will allow the banking sector to self-manage LTV / FTV amount of the first credit / financing in accordance with the badysis of the bank of its debtors and the risk management policies of each bank "says Filiani.

He explained that, in order to determine the amount of LTV to the debtor, the bank must also take into account the prudential aspect (caution) [19659023] in his application . Only banks with a net total GNP of less than 5% and a NPL gross mortgage loan less 5% that can exploit this policy . Since the beginning of the issuance of the provisions, the LTV / FTV policy has also excluded the housing program of central government and local government.

To be known, in a turan before in the regulation BI (PBI) number 18/16 / PBI / 2016 on the LTV ratio for Real Estate Loans, Value Financing (FTV) for Property Financing, and Advance for Credit or Auto Financing, advance mortgage first property in a conventional bank of 15 percent. Meanwhile, progress in Shariah banks by 10 percent.

With regard to a second home of 20 percent for houses of type more than 70 square meters. And 15 percent if the house type less than 21 to 70 square meters. For the third house, the DP is set at 25 percent for houses on the type of 70 square meters and 20 percent for houses of type 21 to 70 square meters.