Bank Indonesia (BI) will cut the minimum down payment for automotive loan/financing specifically for the purchase of eco-friendly vehicles to zero (0) percent. This policy takes effect from October 1, 2020. Currently, the minimum down payment limit is between 5 percent and 10 percent.
“Lowering the minimum down payment limit from 5 percent -10 percent to 0 percent in the provision of vehicle credit/financing for the purchase of eco-friendly vehicles, while still paying attention to the principle of prudence, will be effective October 1, 2020,” said BI Governor, Perry Warjiyo in a virtual press conference, Wednesday, August 19.
Bank Indonesia is also taking steps to continue the rupiah exchange rate stabilization policy in line with market fundamentals and mechanisms to promote economic recovery from the impact of the coronavirus or Covid-19 pandemic.
He also ensured that the decision on the zero percent down payment would still observe the principle of prudence because it only applies to banks that have a non-performing loan ratio of below 5%.
Regarding the types of vehicles that can be reduced, Perry handed it over to the government. In this case, Perry did not rule out the possibility of the facility being enjoyed by two-wheeled vehicles, three-wheelers, or even more as long as it was in accordance with the provisions
According to Perry’s explanation, the decision to reduce the minimum down payment for environmentally friendly vehicles includes two-wheeled vehicles from 10% to 0%, three-wheeled vehicles or more that are non-productive from 10% to 0%, and three-wheeled vehicles or more that are productive than 5% to 0%.
In addition, Perry explained that the zero percent down payment policy was part of the synergy between the government and BI and the Financial Services Authority in restoring the national economy.
Perry also hopes that the zero percent down payment policy can encourage improvements in the performance of the automotive sector which in turn can restore the national economy as a whole.