BI Extends 100% LTV/FTV Policy to 2027 to Support Mortgages

Bank Indonesia extended the loan-to-value/financing-to-value (LTV/FTV) ratio of up to 100% for credit on landed houses, apartments, and shophouses for banks meeting certain NPL criteria, with the policy originally due to end on 31 December 2026 now running until 31 December 2027. Through September 2026, mortgage (KPR) and apartment (KPA) credit grew only 4.3% year-on-year, far below construction (42.3%) and real estate (15.5%) credit.