Jakarta (ANTARA) - The Financial Services Authority (OJK) observes\nthat the banking sector is currently tending to be more selective in the\nunderwriting process for mortgage (KPR) debtors to ensure their future\nability to make payments.<\/p>\n
Nevertheless, the authority ensures that from a credit risk\nperspective, the non-performing loan (NPL) ratio for mortgage\ndistribution remains historically manageable at around 3 per cent.<\/p>\n
\u201cIt is recorded that in March 2026, the mortgage NPL ratio was 3.14\nper cent, demonstrating that banks possess effective risk management\namidst current economic conditions,\u201d stated OJK Executive Head of\nBanking Supervision, Dian Ediana Rae, in a written response in Jakarta\non Monday.<\/p>\n
OJK noted that, generally, mortgage distribution by banks in March\n2026 still recorded positive growth of 4.79 per cent year-on-year (yoy).\nHowever, mortgage performance during this period was relatively slower\ncompared to the previous year\u2019s growth, which saw double-digit expansion\nof 16.31 per cent (yoy).<\/p>\n
Based on segmentation, this slowdown in mortgage distribution\noccurred across almost all house types, particularly for type 21\nproperties, which slowed significantly compared to the previous\nyear.<\/p>\n
Regarding several banks recording single-digit mortgage growth, Dian\nstated that this development reflects the banking sector\u2019s commitment to\nmaintaining prudential banking principles and alignment with each bank\u2019s\nspecific risk appetite.<\/p>\n
\u201cIn general, credit growth must be supported by other factors that\ncan bolster public purchasing power, especially the public\u2019s ability to\nsustain instalment payments,\u201d said Dian.<\/p>\n
She added that the current growth phenomenon indicates that banks are\nadjusting their strategies to ensure credit distribution remains\nhigh-quality amidst global economic dynamics.<\/p>\n
With the support of various government programmes combined with the\nauthority\u2019s policy mix, Dian stated that this will serve as a strong\ndriver for banks to expand credit and enhance their intermediation\nfunctions, including driving mortgage growth.<\/p>\n
Such government programmes include the continuation of incentives,\nsuch as Government-Borne Value Added Tax (PPN DTP), as well as\ninnovative housing finance schemes.<\/p>\n
Dian added that OJK continuously encourages banks to remain optimal\nin their role as agents of development. In this regard, banks can\noptimise support from government policies and the policy mix while\nremaining mindful of risk appetite and prudential banking aspects.<\/p>\n
\u201cThe banking sector continues to maintain its liquidity, which\nprimarily originates from third-party funds (DPK) or public funds. Banks\nalso understand the application of risk management in managing public\nfunds, as there is a moral responsibility for banks in managing funds\nthat can be channelled into productive activities, such as the\ndistribution of credit\/financing, including mortgages,\u201d said Dian.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/ojk-states-banks-tend-to-be-selective-in-mortgage-debtor-valuations-1780919944", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }