Bank Indonesia has extended its relaxed loan-to-value (LTV) and financing-to-value (FTV) rules for property loans until 31 December 2027. The decision came out of the Board of Governors Meeting (RDG) on 20–21 October 2026 and was announced by BI Governor Destry Damayanti on Wednesday, 21 October. The LTV ceiling stays at 100%, so banks may still finance a home with no down payment.
According to Destry, the rule that was due to end on 31 December 2026 will now "take effect from 1 January 2027 until 31 December 2027," as quoted by CNBC Indonesia. It covers landed houses, apartments, and shophouses and office units (ruko and rukan).
For anyone weighing a landed house in North Bekasi, this removes a deadline. Families without DP savings had felt pushed to sign before the end of 2026. The window now runs another 14 months. One thing stays the same: a 0% down payment only changes the size of the loan, and the interest is still charged on that loan.
What BI decided in October 2026
The policy package announced the same day, as reported by Kontan and CNN Indonesia:
- BI-Rate held at 5.75%. The Deposit Facility rate sits at 5.00% and the Lending Facility rate at 6.50%.
- Property LTV/FTV of up to 100% until 31 December 2027, but only for banks that meet a set non-performing loan (NPL) or non-performing financing (NPF) criterion.
- Rupiah reserve requirement (GWM) for conventional banks cut in two steps, from 9% to 8% on 1 November 2026, then to 7% on 1 December 2026. Sharia banks go from 7.5% to 6.5%, then 5.5%, on the same dates.
- Minimum down payment of 0% for new motor vehicles, also through the end of 2027.
A lower reserve requirement means banks park less money at BI and have more to lend. It does not cut mortgage rates directly. The BI-Rate itself went up several times from May 2026, reached 5.75% at the June meeting, and has stayed there through October.
100% LTV is a ceiling
A 100% LTV is the limit BI allows. Banks don't have to offer it, and two filters still apply.
The first is on the bank's side. Only banks whose NPL/NPF ratios meet BI's criterion may offer 100% LTV. The meeting reports don't give the threshold, so the quickest route is to ask the mortgage officer directly whether their bank can do 100% LTV on a landed house.
The second is on your side. The bank still checks whether you can pay, usually by comparing the installment with your income. A Rp700 million loan needs a bigger income than a Rp560 million loan on the same house. How banks read your payslip is covered in net vs gross income and your KPR limit.
What a 0% down payment costs on a Rp700 million house
The table uses the price of the Emerald 70 house at Kingspoint, around Rp700 million including VAT. It assumes a flat 8% a year over 20 years. Treat it as a comparison only: real mortgages here usually have a fixed-rate period followed by a floating rate.
| Down payment | Loan | Monthly installment | Total paid over 20 years | Income if installment is ±1/3 of pay |
|---|---|---|---|---|
| 0% (Rp0) | Rp700 million | ±Rp5.86 million | ±Rp1.41 billion | ±Rp17.6 million |
| 10% (Rp70 million) | Rp630 million | ±Rp5.27 million | ±Rp1.26 billion | ±Rp15.8 million |
| 20% (Rp140 million) | Rp560 million | ±Rp4.68 million | ±Rp1.12 billion | ±Rp14.1 million |
The gap in total payments between 0% and 20% down is about Rp281 million. Rp140 million of that is the down payment you didn't pay upfront. The other Rp141 million or so is interest on the extra borrowing. So at 8%, each Rp70 million you skip as a down payment turns into roughly Rp140 million paid over 20 years.
The second risk gets less attention. A bigger loan makes your installment more sensitive to floating-rate increases. If the rate rises by one percentage point after the fixed period ends, the installment on Rp700 million climbs more than the one on Rp560 million. Fixed-period choices are compared in KPR fixed vs floating after the BI-Rate hit 5.75%.
Even with 0% down, several costs are paid in cash at signing: BPHTB (5% of the transaction value after the tax-free allowance set by Bekasi City regulation), notary/PPAT fees, bank provision and admin fees, the appraisal, and life and fire insurance premiums. Ask for the breakdown in writing before you sign the SP3K approval letter.
When a 0% down payment makes sense
It helps most for families with a steady income that comfortably covers the full installment, but whose savings go to closing costs and the move itself. For them, 0% down cuts years of saving, and the rent they pay now can go toward the installment instead.
If your income only just clears the one-third mark, though, a 0% down payment leaves no room in the budget. One rate rise after the fixed period can be enough to squeeze the household. In that case, saving a 10% down payment for a few more months shrinks both the loan and that risk. With the extension running to the end of 2027, there's no reason to rush a signing before December 2026.
A more detailed run of the Emerald 70 numbers with a minimal down payment is in our 0% down payment for first-home KPR article. Booking fees, which you still pay with 0% down, are covered in booking fees on ready-stock homes.
Frequently asked questions
How long does the 0% down payment for homes last?
Until 31 December 2027. BI extended it at the 20–21 October 2026 meeting; it was previously set to end on 31 December 2026.
Do all banks have to offer a mortgage with no down payment?
No. Only banks that meet BI's NPL/NPF criterion may offer 100% LTV, and they still assess whether the borrower can pay.
Did the BI-Rate go up in October 2026?
No. It was held at 5.75%, with the Deposit Facility at 5.00% and the Lending Facility at 6.50%.
Sources: results of the Bank Indonesia Board of Governors Meeting of 20–21 October 2026 as reported by CNBC Indonesia, Kontan and CNN Indonesia (21–22 October 2026). The installment figures are illustrations at a flat 8% a year; actual numbers depend on the bank's offer. This article is for information, not financial advice.
Ask about partner banks and closing costs
Get the list of partner banks offering 0% down payment mortgages and a closing cost breakdown for the Emerald 70 house on Jl. Raya Perjuangan, Bekasi Utara.
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