By Mukhamad Misbakhun, Member of Commission XI The House of Representatives of The Republic of Indonesia (DPR RI)

Jakarta – AS a Member of DPR RI of Commission XI who is a working partner of Bank Indonesia (BI), since becoming BI Governor in 2018, Perry Warjiyo conveyed something very specific as a key word policy, namely Ahead of the Curve. It’s magic words. It’s a kind of spell sentence which later became a guide for every monetary policy in the central bank.

Evidently, two weeks after being appointed as Governor of BI, the loan to value (LTV) policy was immediately changed. Policies that have a direct impact on advance payments, down payments, housing and automotive sector purchases are changing. In the property and automotive markets, there are new policies that are game changers for the stagnant growth in these sectors. Thus, once the LTV policy was changed, there would be a contribution from the movement of the real sector from these two sectors to macro-economic growth, which at that time was in urgently require of fresh blood in the form of policy changes.