A. Legal and Regulatory Framework
A.1 Legal and Regulatory Framework
| Variable | End of 2018 | End of 2017 | End of 2016 | Sources | Var ID |
|---|---|---|---|---|---|
| Basis of the legal system: Civil, Common, Islamic, Other? (Describe) | Civil | Civil | Civil | CIA World Factbook | A.1.1 |
| Are there specific laws that deal with mortgages? | Yes | Yes | Yes | Indonesian Real Estate Law | A.1.2 |
| Registration/Transfer of titles: | A.1.3 | ||||
| Does the law clearly define different types of property rights? | Yes | Yes | Yes | Indonesia Real Estate Law | A.1.3.1 |
| Are property rights easily transferable? | Yes | Country Editor | A.1.3.2 | ||
| Identify barriers to the registration/ transfer of property title. | Double certificate of ownership, legal disputes | Country Editor | A.1.3.3 | ||
| Typical number of days needed for the transfer of title | 30.64 | 27.64 | 27.64 | WDI | A.1.3.4 |
| Can liens be effectively enforced? | No | 1150 KUHPer | A.1.4 | ||
| Number of months until lender acquires the property in case of foreclosure on a single-family residential property? | 5 | Internal SMF | A.1.4.1 | ||
| Cost of foreclosure process as a percentage of the value of a typical loan? | 11 USD% | Regulation No. 19 year 2000 jo. Government Regulation No. 135 year 2000 Jo. Ministry of Finance Decree No. 561/KMK.04/2000. Download in Resources and Data Section. | A.1.4.2 | ||
| Main causes of inefficiencies (legal, judiciary, administrative, cultural, etc.) | Inefficiencies of title transfer (administrative) through public auction: the long public auction term, due to the postponement by head of Regional Court, incomplete data, ect. | Internal SMF | A.1.4.3 | ||
| Are there legal constraints on the types of mortgage products that are permitted? | No | No | No | Country Editor | A.1.5 |
| Are there legal constraints on mortgage features? | No | No | No | Country Editor | A.1.6 |
| Interest rate caps | No | No | No | Country Editor | A.1.6.1 |
| Loan-to-Value cap | No | No | No | Country Editor | A.1.6.2 |
| Payment-to-Income maximum | No | No | No | Country Editor | A.1.6.3 |
| Are there consumer rights for mortgage lending? | Yes | Internal SMF | A.1.7 | ||
| Are there disclosure requirements for mortgage lending? | Yes | Internal SMF | A.1.8 | ||
| Is there specialized legislation covering: | A.1.9 | ||||
| Issuance of covered mortgage bonds | No | SMF | A.1.9.1 | ||
| Issuance of RMBS | Yes | Yes | Yes | Regulation No. 23/POJK.04/2014 | A.1.9.2 |
B. Housing Finance Subsidies
B.1 Subsidies to Housing Finance Institutions
| Variable | End of 2018 | End of 2017 | End of 2016 | Sources | Var ID |
|---|---|---|---|---|---|
| Are there subsidized funding sources for mortgage lenders? | Yes | Yes | Yes | Country Editor | B.1.1 |
| Special government lines of credit | Yes | Yes | Yes | Country Editor | B.1.1.1 |
| Government supported liquidity facility | Yes | Yes | Yes | Ministry of Public Works and Housing | B.1.1.2 |
| Labor or other tax funds for mortgage lending | Yes | Yes | Yes | ABNR Law Firm, year=2016, month=3 | B.1.1.3 |
| Tax breaks on mortgage bonds or RMBS | No | SMF | B.1.1.4 | ||
| Loss and/or cash flow guarantees for RMBS | No | SMF | B.1.1.5 | ||
| Other | No | SMF | B.1.1.6 | ||
| Is the lending side of the housing finance system subsidized? | Yes | Yes | Yes | Research | B.1.2 |
| Shared credit risk through public/private mortgage insurance | Yes | Yes | Yes | Jamkrindo | B.1.2.1 |
| Guarantees for mortgage loans | No | Menpera (Ministry of Housing) regulation | B.1.2.2 | ||
| Other | No | Country Editor | B.1.2.3 |
B.2 Subsidies to Households
| Variable | End of 2018 | End of 2017 | End of 2016 | Sources | Var ID |
|---|---|---|---|---|---|
| Are there subsidies to households on housing finance? | Yes | Yes | Yes | Research | B.2.1 |
| Interest rate subsidies by special government funds | Yes | Yes | Yes | Ministry of Public Works and Housing | B.2.1.1 |
| Buy-down of monthly/interest payments | Yes | Yes | Yes | Ministry of Public Works and Housing | B.2.1.2 |
| Down-payment subsidies | Yes | Yes | Yes | Ministry of Public Works and Housing | B.2.1.3 |
| Subsidies to savings for mortgage loans | No | SMF | B.2.1.4 | ||
| Mortgage interest deductibility from income tax | No | SMF | B.2.1.5 | ||
| Other | No | SMF | B.2.1.6 | ||
| Reach of subsidies in 2.1.1 to 2.1.4 ? | B.2.2 | ||||
| What is the highest income decile targeted? | 5 decile | SMF, Historical | B.2.2.1 | ||
| What is the lowest income decile targeted? | 1 decile | SMF, Historical | B.2.2.2 | ||
| What proportion of loans is affected by the subsidies in 2.1.1 to 2.1.4? | 50% | SMF estimate | B.2.2.3 | ||
| What proportion of loans on main residences is affected by the mortgage interest deductability in 2.1.5? | Not available | N/A | B.2.3 | ||
C. Taxation
| Variable | End of 2018 | End of 2017 | End of 2016 | Sources | Var ID |
|---|---|---|---|---|---|
| What taxes apply to Residential Real Estate? | C.1 | ||||
| Tax on property (home-owners) | Yes | Yes | Yes | C.1.1 | |
| Property transaction taxes (purchase/selling) | Yes | Yes | Yes | C.1.2 | |
| Mortgage transaction taxes | Yes | Yes | Yes | C.1.3 | |
| Tax on mortgage interest pmts | No | SMF | C.1.4 | ||
| Tax on capital gains on property | No | SMF | C.1.5 | ||
| Other | Yes | Yes | Yes | C.1.6 | |
| Are there tax benefits on rental properties? | No | No | No | Research | C.2 |