JAKARTA – Financial Services Authority (OJK) is encouraging Financial Service Institutions (LJK) to facilitate the provision of housing ownership loans (KPR) for low-income households (MBR).

M. Ismail Riyadi, Acting Head of OJK’s Department of Financial Literacy, Inclusion, and Communication, stated that OJK is providing flexibility for financial institutions to adopt lending policies based on risk management practices, aligned with their risk appetite and business considerations.

“OJK has issued letters to banks and other financial institutions to support the expansion of financing for MBR mortgage loans,” he said in Jakarta, Tuesday (14/1).

This initiative aligns with OJK's support for President Prabowo Subianto’s housing program, which aims to deliver 3 million homes per year.

He noted that the use of the Financial Information Service System (SLIK) can help assess the eligibility of prospective debtors, but it should not be the sole factor in determining whether a housing loan is granted.

“SLIK is used to minimize asymmetric information and adverse selection, thus facilitating the financing process and supporting financial institutions’ risk management,” he added.

Riyadi emphasized that there is no OJK regulation prohibiting the issuance of loans to customers with past non-performing credit. As of November 2024, 2.35 million new credit accounts were granted by financial institutions to debtors with a previous record of non-performing loans from all SLIK reporters. (LK/ZH)