Extended: Zero-Down-Payment Loans for Homes and Motor Vehicles
Jakarta – Bank Indonesia (BI) has decided to extend its zero-down-payment policy for property loans and financing for new motor vehicles until 31 December 2027.
The decision was announced in the results of BI’s Board of Governors Meeting on Wednesday (21 October 2026). It extends the easing policy, which had previously been due to expire on 31 December 2026.
BI Governor Destry Damayanti said the easing of the loan-to-value (LTV) and financing-to-value (FTV) ratios for the property sector would be extended to 100%. This allows banks to continue providing property loans or financing with down payments starting at 0%.
The policy covers various types of property, including landed houses, flats, shop-houses and office-houses. However, the facility may only be offered by banks that meet certain criteria for non-performing loans (NPLs) and non-performing financing (NPF).
“Extending the validity of the LTV and FTV provisions for property loans and financing to 100% for all types of property, including landed houses, flats, shop-houses and office-houses, for banks that meet certain NPL or NPF criteria, from the previous expiry date of 31 December 2026, to take effect from 1 January 2027 until 31 December 2027,” Destry said at a press conference on the BI Board of Governors Meeting in Jakarta, according to a report on Sunday (25 October 2026).
In addition to the property sector, BI has also extended the minimum 0% down-payment policy for loans and financing for new motor vehicles.
The provision applies to all types of new motor vehicles and has been extended for the period from 1 January to 31 December 2027.
“Motor vehicle loans and financing with a minimum down payment of 0% for all types of new motor vehicles, previously due to expire on 31 December 2026, will now be effective from 1 January 2027 until 31 December 2027,” Destry said.
With this extension, BI is maintaining banks’ scope to offer low-down-payment financing for purchases of both property and new motor vehicles.