In an effort to boost the property market, Bank Indonesia Governor Perry Warjiyo has said the bank will introduce relaxed loan to value (LTV) rules and a range of other policies, to encourage home ownership among millennials and attract more investors into Indonesia's property market. 

Warjiyo has expressed that with these new changes, two types of buyers - first-time buyers and investment buyers - hold the power to boost the property market.

“Our data shows that the potential buyers of both apartments and houses are those aged between 36 and 45 years old. Our policy encourages first-time buyers,” Warjiyo said. 

In 2016, the central bank issued Bank Indonesia Regulation No. 18/16/PBI/2016 on Loan to Value Ratio for property financing and down payments for vehicle financing. 

Currently, under the regulation, first-home mortgages from commercial banks require a down payment of 15 per cent, while second-time buyers require 20 to 25 per cent, relative to property size. 

Source: Bank Indonesia, The Jakarta Post 

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