PPSP to Face Tighter Financing Controls: Maximum 20% Financing Cap to Be Introduced for Single Debtors

The Financial Services Authority (Otoritas Jasa Keuangan– “ OJK ”) is currently completing work on a new Draft Regulation (“ Draft Regulation ”) on the Supervision of Secondary Housing Financing Companies (Perusahaan Pembiayaan Sekunder Perumahan– “ PPSP ”). If this Draft Regulation ultimately comes into force, then it will replace the existing framework of Regulation of the OJK No. 4/POJK.05/2018 on PPSP, as amended by Regulation of the OJK No. 12/POJK.05/2022 (collectively referred to as “ Regulation 4/2018 ”). [1]