Central Bank Perspective: Promoting Green Finance for Sustainable Economic Development
Macroprudential Policy to Promote Green Finance
The green macroprudential policy can be divided into three groups: (i) Integrating sustainable considerations into
existing macroprudential policy; (ii) Green monetary-macroprudential policy mix; and (iii) Innovation on green
macroprudential policy
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Green LTV and Down Payment
In 2018, Bank Indonesia requires banks to have a
certain maximum LTV for property loans and a
certain minimum down payment for vehicle loans
In 2019, Bank Indonesia has loosened Loan to Value
(LTV) for green housing loans and Down Payment for
electric vehicle loans, 10% more relaxed than the
non-green loans.
In 2020, Bank Indonesia allows the LTV for green
property loans up to 100% and the down payment
for electric vehicle loans up to 0%.
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Green property and electric
vehicles laons
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Green Macroprudential Inclusive Financing Ratio
(RPIM)
In 2021, Bank Indonesia requires banks to maintain a
certain inclusive financing ratio.
In 2022, Bank Indonesia allows Banks to fulfil the
inclusive financing ratio requirement by purchasing
green bonds.
1. Direct financing
and Supply Chain
Financing
RPIM
2. Financing through
other financial/non-
financial institutions
(channeling &
executing)
3. Purchase of
inclusive financing
securities
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