BI Further Relaxes LTV and FTV Ratios for Property and Motor-Vehicle Ownership

Bank Indonesia (“ BI ”) has issued Regulation of the Bank Indonesia Board of Governors on Loan-to-Value Ratios for Property Loans, Financing-to-Value Ratios for Property Financing and Advanced Payments of Credits and Financing for Motor Vehicles (“ PADG 22/2018 ”), which sets out further provisions on the implementation of Regulation of BI No. 20/8/PBI/2018 .In essence, the PADG 22/2018 encompasses a number of new rules relating to the provision of loans and financing by banks. These new rules address the following specific areas: