BI describes the macroprudential strategy to stimulate economic recovery


Our survey shows that there are those who are 100% brave but for credible developers there are also those who are still 90-95%

Jakarta (medialnews) – The Bank of Indonesia (BI) explained a number of macroprudential policy strategies to accelerate the national economic recovery this year after contracting quite deeply last year due to the COVID-19 pandemic .

“Specifically from a macroprudential point of view, what is the strategy? The strategy is because credit is always contractual, so we focus on how to encourage first credit from sectors that have direct link and back binding property and auto, ”Deputy Governor and Head of Bank Indonesia’s Macroprudential Policy Department Juda Agung said at a webinar titled“ The Role of Macroprudential Policy in Economic Recovery ”in Jakarta on Friday.

He said the policy to encourage the real estate and automotive sectors on both the fiscal side, namely the taxation by the government, the macroprudential side of BI and the microprudential side by the Authority of financial services (OJK), was starting to be efficient and the banking sector’s response to this policy was also very positive.

BI increased the loan to value (LTV) or relaxed the down payment policy for housing to zero percent. The bank can now determine the amount of the deposit to customers, based on appetite for risk and risk management.

Also read: BI: Banks still have option to lower lending rates

“Our survey shows that there are those who are 100% courageous, but for credible developers, some still are 90-95%. But we are 100% open,” said Judah.

The impact, he said, was indeed that household interest (RT) for investment in the real estate sector started to increase, especially for houses and apartments land, except offices that are no longer really needed according to Work From Home (WFH). Politics.

“What is also positive, KPR also continues to grow. Meanwhile, other credit is minus 2.28 percent in the industry, earlier the KPR rose to 4.84 percent. from year to year. We should be thankful for the signs of recovery in the real estate industry, ”Judah said.

Meanwhile, for motor vehicles, BI has also reduced down payments and the government has also lowered the sales tax on luxury goods (PPnBM). The results are rather positive, where sales of motor vehicles are now tight, and even a number of manufacturers have not been able to meet demand.

Read also: BI pursues 7 policies to restore the national economy

The central bank has also reactivated the macroprudential intermediation ratio (RIM) to protect macroprudentials so that credit growth is neither too low nor too high. In the current environment, Judah continued, credit growth was too weak and therefore needed to be encouraged.

“RIM is still below 80 percent. We are pushing that rate down to 84-94 percent. A level that can be considered optimal, not too low is not too high. But we are doing it gradually, first 75 percent, September 80 percent, January 84 percent, ”Judah said.

The next strategy, he said, is to increase the efficiency of interest rate transmission through the transparency of the Prime Lending Rate (SBDK). Then, in terms of financial inclusion, namely the financing of the MSME sector.

Judah said from a survey conducted by BI, MSME actors’ cash flow was still good, but working capital funding was still relatively limited.

“The point is that in 2020 we are focusing on saving the economy, so the focus is liquidity, liquidity, liquidity. There are also more payment systems to encourage digitization. For 2021, the focus is on economic recovery, encouraging credit, lowering interest rates and financing the affected sectors, namely the MSME sector, ”Judah said.

Read also: BI Governor explains his economic recovery policy at ASEAN + 3 meeting

Journalist: Citro Atmoko
Editor: Risbiani Fardaniah
COPYRIGHT © BETWEEN 2021

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