FSA: Easing loan to value is only temporary

Financial Services Authority (FSA) says ready to re-adjust if easing loan to value (LTV) of the property sector raises the morbidity (bubble). That's because only temporary easingLTV.

Chairman of the Board of Commissioners FSA Muliaman D Hadad said, easing LTVdone to encourage lending flagging.

"LTV temporary if it is loose, decreased we push him back to life thereby to counterweaknesses. If it is too high, creating a bubble we change again LTV her it is temporary," he said in the Indonesia Economy: Review on Financial and Banking Sector at Atma Jaya Catholic University, Jakarta, Monday (15/08/2016).

Hadad explained, to encourage economic growth necessary to support the property sector to be back bergeliat. One way to encourage the growth of the property sector is byeasing LTV. "Economic growth is weakening. We are encouraging the growth of the property," he said.

He said the property sector is one indicator of economic growth. By encouraging theproperty sector, the other sectors will also grow.

"Property weak move means that the property he could be a leading indicator of growthanother request. Linkages property aplenty ranging iron, sand, cement he can be aleading indicator to illustrate the progress of the economy," he said. (Amd / NRM)