"An integrated policy package to increase business financing played a role in accelerating economic recovery, including in the automotive sector. The policy package in this sector has had a positive impact," she said at a KSSK press conference here on Wednesday.
The realization of motor vehicle loans reached Rp97.45 trillion as of December 2021, with car sales climbing to 863,300 units from 578,300 units in 2020, the minister informed.
Furthermore, the KSSK encouraged the automotive sector through the provision of incentives for Luxury Goods Sales Tax (PPnBM) for motorized vehicles by the Finance Ministry, she said.
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There was also a relaxation in ratio-weighted assets (ATMR) and advances for finance companies carried out by the Financial Services Authority (OJK) as well as easing of credit advances by Bank Indonesia, she added.
The integrated policy package had been implemented since February 2021 with the aim of increasing financing for businesses and encouraging the acceleration of economic recovery, including in the automotive sector, Indrawati said.
The increase in motor vehicle sales reflected the KSSK's policy, which had a positive impact on the sector, she observed.
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Other KSSK efforts also had a positive impact, she noted. This was reflected in the realization of the distribution of Home Ownership Loans (KPR) in 2021, which reached Rp465.55 trillion, she said.
KSSK's efforts to encourage the distribution of People's Housing Loans (KPR) were realized through the provision of Value Added Tax (PPN) incentives for housing by the Finance Ministry, followed by easing of risk-weighted assets (RWA), provisions for insurance premium rates, and advances for finance companies by the OJK, she added.
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Bank Indonesia also eased the LTV/FTV (Loan to Value/Financing to Ratio) ratio for loans and property financing to a maximum of 100 percent for banks meeting certain NPL/NPF (non-performing loan/non-performing financing) criteria, she said.
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Translator: Katriana
Editor: Fardah Assegaf
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