BCA had anticipated Bank Indonesia's loan to value (LTV) policy. The BCA president director said the bank understood BI's policy given current economic conditions. For expensive areas, BCA set higher down payments than BI's minimum of 30%, such as 50%. BCA had also anticipated a credit slowdown by budgeting a 20% increase compared to 37% the previous year. The LTV policy aims to control property sector credit growth and improve credit quality by increasing down payment requirements.

1. BCA has been Anticipation LTV
Policy
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Elfa Adriana Ginting
Eunike Yuliana
Febriana Dialusi Hasianta
Maria Felicia
Micha Paramitha
Raynova Ramadhan
Saphira Grace
Syukur Gulo

2. What is Loan to Value (LTV)???
LTV, or loan-to-value, is all about how much
mortgage you have and relation to how much your
property is worth. It's normally a percentage of your
property that is mortgaged, (the amount you own is
usually called your equity).*
Rp 200.000
Rp 50.000
(Equity)
Rp 150.000
75%
75%

3. Background LTV Policy
1. According to research, the growth of property prices
in Jakarta higher than other big cities in the world;
2. The increasing of credit of property was followed by
non-performing loans (NPL);
3. The increasing of property price in the last few
years in Indonesia has become a serious concern of
Bank Indonesia (BI);
4. BI anticipate the similar crisis that experienced in
the United States in 2008. Crisis start from lending
credit to debitur is not credible (subprime
mortgages) and the implications of inflation in the
property sector.

4. Why LTV Policy should be used?
1. The growth of credit for the property sector to be
controlled;
2. Restrictions on down payment loans (loan to value
ratio / LTV) through the increasing of credit down
payment will improve the credit quality;
3. The quality of credit will be affected by the ability to pay
from the consumer / creditor.
4. The credit that have a quality will reduce the risk of
'non-performing loans‘.

5. BCA has been Anticipation LTV Policy
Author: Sakina Rakhma Diah Setiawan
Tuesday, October 1, 2013 | 16:03 pm
JAKARTA , KOMPAS.com - President Director of PT Bank Central Asia,Tbk
(BCA) John Setiaatmadja said the company had anticipated the policy loan
to value ( LTV ) issued by Bank Indonesia ( BI ) .
Jahja declared related parties must understand the policy issued by the BI.
According to him , the policy issued by the Bank Indonesia LTV associated
with economic conditions that occur at this time .
“We must be understood is why the policy is held. Due to the economic
condition is bad, then this consumer loans should be reduced . Indeed, if
the trend is to reduce the release of loans including mortgages ( home
loans ) so we also have to understand , " said Jahja at Menara BCA ,
Tuesday ( 01/10/2013 ) .
http://bisniskeuangan.kompas.com/read/2013/10/01/1603091/BCA.Telah.Antisipasi.Kebijakan.LTV

6. Furthermore , Jahja declared for areas considered to have an overpriced
property prices are too expensive , it pegged down payment (down
payment / DP ) is higher than that set by the central bank.
"For areas that I see is too expensive I asked the down payment 50%
while 30% from BI“,he said .
Jahja revealed, it has been anticipated slowdown when preparing the
budget at the beginning of the year. Therefore, it set a credit increase by
20%. "Incidentally, we compile budget is actually why we said from the
beginning of this year our total credit 20%, last year 37%, "he added .
For information, Bank Indonesia (BI) official enforce rules regarding Loan
To Value for Housing Loan (mortgage). The rules contained in the Circular
Letter ( SE ) No. BI . 15/40/DKMP dated 24 September 2013 on the
​
application of risk management at banks that do loans or financing
property ownership, credit or property, and Credit Financing or Vehicle .
Editor : Bambang Priyo Jatmiko
http://bisniskeuangan.kompas.com/read/2013/10/01/1603091/BCA.Telah.Antisipasi.Kebijakan.LTV

7. Price graph of property in North Jakarta

8. The comparison
of property price
between Jakarta
and West Java

9. CONCLUSION
Loans in the property sector
Indonesia in the serious stage;
in
One of method to control is tightening
of credit through the increasing of
credit limit;
The world bank anticipate when
distributing a credit and more selection
in order to avoid non-performing loans
needs to be careful and have a risk
management for 'property bubble’
does not occur in Indonesia;

10. CONCLUSION
Loans in the property sector
Indonesia in the serious stage;
in
One of method to control is tightening
of credit through the increasing of
credit limit;
The world bank anticipate when
distributing a credit and more selection
in order to avoid non-performing loans
needs to be careful and have a risk
management for 'property bubble’
does not occur in Indonesia;