Indonesian Property is Better than the Last Year

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Bank Indonesia (BI) emphasized that the condition of the Indonesian property market until July 2021 is much better than last year. Kurniawan Agung Wijayanto, Deputy Director of the Macroprudential Policy Department of Bank Indonesia (BI), conveyed this on Thursday (August 12, 2021).

This fact is the result of BI’s latest research which illustrates that almost all segments have positive growth rates.

Agung said that mortgage growth increased in line with the policy stimulus provided by the government, BI, and related authorities.

He added that although it was contracted again due to the implementation of the PPKM, as demand was quite high, it was estimated that the property market could strengthen again.

Meanwhile, to support the provision of stimulus to property developers, the Financial Services Authority (OJK) has officially issued a POJK that regulates this.

Eddy Manindo Harahap, Executive Director of the OJK Banking Supervision Quality Control Department, said that in addition to issuing POJK related to the Covid-19 stimulus, OJK also synchronizes regulations so that policy implementation can run quickly and precisely.

OJK also asked banks not to hesitate to help affected debtors who need fresh funds to run their businesses.

“There are several policies for debtors affected by Covid-19, among which banks can provide new credit for debtors affected by Covid-19, and the determination of credit quality is carried out separately from the previous credit quality,” explained Eddy.

However, banks can adjust the credit restructuring approval mechanism while still taking into account the precautionary principle. “During the Covid-19 pandemic, there were 101 banks that had restructured loans to 5.16 million debtors with a total outstanding of IDR 772 trillion,” he added.