Business · Economy · 3 hrs ago
Indonesia Extends 0% Down-Payment Rules for Homes and New Vehicles Through 2027
Bank Indonesia extended its 0% down-payment rules through 2027 at a meeting in Jakarta on October 21, 2026.
The property rule lets qualifying banks finance up to 100% of a property’s value, making a loan with no down payment possible.
It covers houses, apartments and shop-houses, but banks must meet certain standards for non-performing loans or financing.
The extension replaces an end date of December 31, 2026, and applies from January 1 to December 31, 2027.
For all types of new motor vehicles, the minimum down payment can also remain at 0% during 2027.
The rules matter because they allow buyers to seek loans without paying a down payment, though approval and bank eligibility conditions still apply.
Bank Indonesia extended zero-down-payment rules for property loans and new vehicle financing through December 31, 2027.
The property rule allows eligible banks to offer financing with a loan-to-value or financing-to-value ratio of up to 100%.
It covers landed houses, apartment buildings and shop-houses, and applies only to banks meeting certain non-performing loan or financing criteria.
The minimum down payment of 0% for financing all types of new motor vehicles will also remain in effect.
Both measures had been due to end on December 31, 2026.
- Who
- Bank Indonesia, with Governor Destry Damayanti explaining the decision.
- What
- It extended zero-down-payment rules for property loans and new vehicle financing through 2027.
- When
- The decision was announced on October 21, 2026. The extensions apply from January 1 to December 31, 2027.
- Where
- The announcement was made at Bank Indonesia’s office in Jakarta.
- Why
- Not stated.
This story does not have two clearly opposing sides.
Bank Indonesia announced the extensions following its Board of Governors meeting.
The extended property and new vehicle financing rules take effect.
The extended rules are scheduled to end.
- Property financing ratio
- Up to 100% LTV or FTV
- Property types
- Landed houses, apartment buildings, shop-houses and shop-offices
- Eligible lenders
- Banks meeting certain NPL or NPF criteria
- New vehicle down payment
- Minimum 0% for all types of new motor vehicles
- Extension period
- January 1 to December 31, 2027
What people are saying
Extending the validity of the 100% LTV, FTV ratio provisions for property credit and financing for all types of property, including landed houses, apartment buildings, and shop-houses or shop-offices, for banks that meet certain non-performing loan or non-performing financing criteria, from the original end date of December 31, 2026, to take effect from January 1, 2027, through December 31, 2027.
Motor vehicle credit and financing with a minimum down payment of 0% for all types of new motor vehicles, originally due to end on December 31, 2026, will take effect from January 1, 2027, until December 31, 2027.