Bank Indonesia extends 0% down payment policy for property and vehicles

Bank Indonesia (BI) has announced the extension of its macroprudential easing policies, allowing for 0% minimum down payments on both property and new motor vehicle financing. Originally scheduled to expire on December 31, 2026, these provisions will now remain in effect from January 1, 2027, until December 31, 2027.

For the property sector, the Loan to Value (LTV) and Financing to Value (FTV) ratios are extended at 100%, covering various types of real estate including landed houses, apartments, shop-houses (ruko), and office-houses (rukan). For the automotive sector, the 0% minimum down payment applies to all types of new motor vehicles.

BI Governor Destry Damayanti emphasized that these measures are intended to support banking credit distribution and maintain national economic activity. However, the facility is not universal; banks may only offer these terms if they meet specific prudential criteria regarding their non-performing loan (NPL) and non-performing financing (NPF) ratios.