Investor Presentaiton
Adjustment of LTV/FTV Requirements on Automotive loans/financing
(effective from 1st March 2021 until 31st December 2021)
Bank Indonesia relaxes down payment requirements on automotive loans/financing to minimum 0% for all new motor vehicles to stimulate credit growth in
the automotive sector, while maintaining prudential principles and risk management
Policy Objectives and Background
a.
b.
C.
d.
e.
In response to the latest global and domestic developments, Bank Indonesia is maintaining an accommodative policy mix in line
with efforts to stimulate economic recovery and maintain financial system stability.
Considering the need to stimulate recovery, particularly in the automotive sector, and considering the sector has strong
backward and forward linkages in the economy.
The policy is implemented as part of the policy mix with fiscal stimuli issued by the Government, including a reduction to the
luxury goods sales tax (PPnBM).
The amendment also takes into consideration the contained credit/financing risk in the automotive sector.
Looser downpayment requirements on automotive loans must comply with prudential principles and risk management.
Changes to Down payment Requirements on Automotive Loans/Financing
Current Requlation
Downpayment Requirements
on Non-Green Vehicles
New Regulation
Devinpayment solirements
Downpayment Requirements
on Green Vehicles
Source: Bank Indonesia
Downpayment Require rents
on Green Vehicles
Vehicle Type
NPL
Requirements
Met
NFL
Requirement
Not Met
NFL
Requirements
Met--
NPL
Requirements
Not Met
Vehicle Type
on Non-Green Vehicles
NPL
Requirements
Met
NFL
Requirements
Not Met
NFL
Requirements
Met-
NFL
Requirements
Not Met
Two Wheels
19%
20%
0%
15%
Two Wheels
0%
10%
0%
0%
Two Wheels
15%
25%
0%
20%
Two Wheels
0%
10%
0%
0%
or
More
(Non-
Commercial)
Two Wheels
10%
15%
0%
10%
of
(Non-
Commercial)
Two Wheels
More
0%
5%
0%
0%
Mare
or
More
(Commercial)
(Commercial)
*) previous regulation, PBI No. 21/13/PBI/2019
*) Requirements as follows:
1.
Gross NPL/NPF ratio <5%; and
2. Net NPL/NPF ratio <5%
Notes:
Green vehicles include battery electric vehicles (BEVS) as stipulated in prevailing laws and regulations on accelerating the battery electric
vehicle program for road transportation.
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