BI to Boost Property Sector

Dian Ihsan Siregar    •    17 Mei 2017 15:56 WIB
finance and money
BI to Boost Property Sector
Illustration (Photo: MI/Panca Syurkani), Jakarta: Bank Indonesia (BI) macroprudential policy director Ita Rulina believes low interest rate environments can stimulate property projects.

BI decreased the benchmark interest rate by 100 basis points last year. The central bank also reduced the loan to value rate four times.

"Interest rate is more influential than macroprudential policy,"  Ita said on Wednesday.

BI will monitor property financing sector this year. The central bank also will observe loan disbursement growth.

"Property financing is for long term," Ita said.

Previously, BI reported that the Residential Property Price Index accelerated to 1.23 percent in January-March 2017 from 0.37 percent in October-December 2016.