That is quite an amount."
Jakarta (ANTARA News) - The Bank of Indonesia (BI) revealed on Thursday that mortgage growth in October fell to 0.54 percent, down from an average of 2.42 percent during the first nine months of this year.

"There was a decrease of 2.42 percent in mortgages per month during the first nine months. This could be due to the Loan-to-Value provisions or Bank Indonesias interest rates, but we cannot definitively say which one is the primary reason," Bank Indonesias Assistant Governor Mulia Siregar stated at a seminar on Thursday.

Mortgage growth in October was pegged at 30.8 percent, down from 31 percent in August and 31.9 percent in September.

Mulia pointed out that based on Bank Indonesias debtor information system there were 35,298 borrowers who had more than one mortgage valued at Rp31.8 trillion. "That is quite an amount," said Mulia.

Meanwhile, based on the results of a survey the Bank of Indonesia conducted on 5,000 respondents, as many as 42 respondents mentioned that during the last one year they had chosen to invest in the property sector, instead of gold, mutual funds or others.

Mulia said that all this while, banks had boldly provided size-able loans-to-value due to the expectation of a hike in property prices.

"We see risks here and such behavior is far from cautious. We dont want to experience a crisis like other countries did and therefore we must anticipate it," Mulia added.

Editor: Priyambodo RH
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