A. Primary Housing Finance Market
A.1 Industry Structure and Performance
| Variable | End of 2018 | End of 2017 | End of 2016 | Sources | Var ID |
|---|---|---|---|---|---|
| Number of firms originating and funding mortgage loans | 146 | Bank Indonesia, SBD KPR Bank Umum | A.1.1 | ||
| Types of originating lenders/market share: | A.1.2 | ||||
| Universal/ commercial banks | 57% of total | Bank Indonesia, SBDK KPR Bank Umum | A.1.2.1 | ||
| Other depository institutions (savings and loans/mutual savings and credit institutions) | 1.5% of total | A.1.2.2 | |||
| General non-depository financial institutions | 44% of total | SMF Analysis | A.1.2.4 | ||
| Others (e.g. insurance co, pension funds, labor tax funds) | .52% of total | A.1.2.5 | |||
| Identify the 3 largest loan originating lenders | BTN | BTN, Mandiri, BCA | Research | A.1.3 | |
| Are there (quasi) public mortgage lenders: | Yes | Yes | Yes | Research | A.1.4 |
| Universal/ commercial banks | Yes | Yes | Yes | Bank BTN | A.1.4.1 |
| Other depository institutions (savings and loans/mutual savings and credit institutions) | No | SMF, Historical and Analysis | A.1.4.2 | ||
| Non-depository financial institutions specialized in housing finance | No | SMF, Historical and Analysis | A.1.4.3 | ||
| General non-depository financial institutions | Yes | SMF, PMK 84/2006 | A.1.4.4 | ||
| Others (e.g. insurance co, pension funds, labor tax funds) | No | SMF Internal | A.1.4.5 | ||
| Typical lending spreads for mortgages | 7.5% | SMF | A.1.5 | ||
| Level of Non-Performing Mortgage Loans (90 days or more past due): | A.1.6 | ||||
| as a % of # of loans | .2% | Bank Indonesia | A.1.6.1 | ||
| as a % of outstanding loan amount | 2.86% | 2.94% | 2.7% | Bank Indonesia | A.1.6.2 |
| Average 1997-2007 | A.1.7 | ||||
| Lowest decile of the income distribution served by the dominant mortgage lenders | 5.5 decile | Estimate based on discussions with BTN | A.1.8 | ||
A.2 Size of Mortgage Finance Sector
| Variable | End of 2018 | End of 2017 | End of 2016 | Sources | Var ID |
|---|---|---|---|---|---|
| Total amount of home mortgage loans outstanding at the end of year in millions of USD: | 30,742.64 USD (millions) | 29,000.46 USD (millions) | 26,319.23 USD (millions) | Bank Indonesia | A.2.1 |
| Total amount of home mortgage loans outstanding at the end of year as % of GDP (current) | 3.01% | 2.86% | 2.82% | Bank Indonesia | A.2.1.1 |
| and as % of all credits outstanding | 8.36% | 8.25% | 8.03% | Bank Indonesia | A.2.1.2 |
| Total # of home mortgage loans outstanding at the end of year | 26,452.84 thousand | SMF | A.2.2 | ||
| Total amount of home mortgages made in calendar year in millions of USD | 4,686.11 USD (millions) | SMF Report | A.2.3 | ||
| What % of total new mortgages is refinance? | .5% | SMF estimate | A.2.5 |
A.3 Housing Finance Products
| Variable | End of 2018 | End of 2017 | End of 2016 | Sources | Var ID |
|---|---|---|---|---|---|
| Mortgage products as % of all mortgages (approx.) in local currency: | A.3.1 | ||||
| Fixed rate for life of loan | 0% | SMF | A.3.1.1 | ||
| Variable rate/indexed | 100% | SMF | A.3.1.2 | ||
| Variable rate/discretionary | 0% | SMF | A.3.1.3 | ||
| Other fully amortizing loans (e.g. Rollover) | 0% | SMF | A.3.1.4 | ||
| Non-fully amoritizing loans (e.g. Price level adjusted/Interest only) | 0% | SMF | A.3.1.5 | ||
| Loans based on foreign currency as % of all mortgage products | 0% | SMF, Divisi Bisnis | A.3.2 | ||
| Most prevalent type of foreign currency mortgage used: | A.3.3 | ||||
| Fixed rate for life of loan | Not available | SMF, Divisi Bisnis | A.3.3.1 | ||
| Variable rate/indexed | Not available | SMF, Divisi Bisnis | A.3.3.2 | ||
| Variable rate/discretionary | Not available | SMF, Divisi Bisnis | A.3.3.3 | ||
| Other (describe in the Notes section) | Not available | SMF, Divisi Bisnis | A.3.3.4 | ||
| Most frequent interest rates on fully amortizing: | A.3.4 | ||||
| 10 year fixed rate mortgage | Not available | A.3.4.1 | |||
| most common indexed ARM/10 year term | 9% | Not available | Bank BTN | A.3.4.2 | |
| discretionary ARM/10 year term | Not available | SMF | A.3.4.3 | ||
| 5 year roll-over/10 year term | Not available | SMF | A.3.4.4 | ||
| foreign currency based 10 year FRM | Not available | SMF | A.3.4.5 | ||
| Typical lender fees associated with mortgage origination: | A.3.6 | ||||
| Fixed in amount | 28 USD | SMF, BTN | A.3.6.1 | ||
| as % of loan amount | 1% | SMF, BTN | A.3.6.2 | ||
| Typical third party fees associated with mortgage origination: | A.3.7 | ||||
| Appraisal fees | 28 USD | BTN | A.3.7.1 | ||
| Title related fees | 3 USD | Attachment Government Regulation No. 13 year 2010, jo. Attachment Government Regulation No. 46 year 2002 (Lampiran Pp No. 13/2010 Jo. Lampiran PP No. 46/2002) | A.3.7.2 | ||
| Legal fees | 224.25 USD | Notary Sutjipto SH | A.3.7.3 | ||
| Search fees | Not available | SMF | A.3.7.4 | ||
| Loan-to-Value (LTV) on first mortgage: | A.3.8 | ||||
| Maximum LTV | 100 | 90 | 90 | A.3.8.1 | |
| Typical LTV at origination | 85 | Bank Indonesia, Surat Edaran Bank Indonesia No.15/40/DKMP tahun | A.3.8.2 | ||
| Maximum term over which pmt is calculated? | 25 years | Country Editor | A.3.9 | ||
| Mortgage pmt-to-income ratio | A.3.10 | ||||
| Maximum pmt-to-income ratio (HH income) | 35% | SMF | A.3.10.1 | ||
| Maximum pmt-to-income ratio (Individual income) | 35% | SMF, Historical | A.3.10.2 | ||
| Typical pmt-to-income ratio (HH income) | 33.33% | SMF, Historical and Interview Divisi Bisnis | A.3.10.3 | ||
| Typical pmt-to-income ratio (Individual income) | 33.33% | SMF, Historical and Interview Divisi Bisnis | A.3.10.4 | ||
A.4 Lending and Servicing Process
| Variable | End of 2018 | End of 2017 | End of 2016 | Sources | Var ID |
|---|---|---|---|---|---|
| Does the mortgage industry use standard principles/guidelines for underwriting? | Yes | Yes | Yes | SMF | A.4.1 |
| Which institutions define underwriting rules? | A.4.2 | ||||
| Central Bank/Ministry of Finance | No | SMF, Divisi Bisnis | A.4.2.1 | ||
| Secondary market facility | Yes | Yes | Yes | SMF | A.4.2.2 |
| Major Lender | No | SMF, Divisi Bisnis | A.4.2.3 | ||
| Other | No | SMF, Divisi Bisnis | A.4.2.4 | ||
| Are loan originations conducted by others than employees of lenders? | No | SMF, Divisi Bisnis | A.4.3 | ||
| % of appraisals done by employees of lenders | 0% | SMF | A.4.4 | ||
| Do third party servicing institutions exist? | No | SMF, Divisi Bisnis | A.4.5 | ||
| % of loans serviced by originators/lenders | 100% | SMF, Divisi Bisnis | A.4.6 | ||
A.5 Credit Risk Assessment
| Variable | End of 2018 | End of 2017 | End of 2016 | Sources | Var ID |
|---|---|---|---|---|---|
| Do credit bureaus exist? | Yes | Yes | Yes | Bank Indonesia | A.5.2 |
| Are there legal/regulatory constraints to gaining access to credit information? | Yes | Yes | Yes | Bank Indonesia Regulation No.15/1/PBI/2013 | A.5.2.1 |
| What percentage of mortgage originations use credit scoring? | 100% | 100% | 100% | Research | A.5.1 |
| Is mortgage default insurance available? | Yes | Yes | Yes | Jamkrindo | A.5.3 |
| When did it begin operating? | 1970 | 1970 | 1970 | Jamkrindo | A.5.3.1 |
| What is the typical MI product? | Credit insurance | Credit insurance | Jamkrindo | A.5.3.2 | |
| Are credit guarantee systems used? | No | SMF | A.5.4 | ||
| Is there public sponsored MI / guarantee? | Yes | Yes | Yes | Jamkrindo, Askrindo | A.5.5 |
| What % of the market does public MI / guarantee serve? | Non-applicable | SMF, Divisi Bisnis | A.5.6 | ||
| What share of total annual mortgage production is insured/guaranteed? | 0% | SMF, Divisi Bisnis | A.5.7 |
B. Funding Sources for Mortgages and the Secondary Mortgage Market
| Variable | End of 2018 | End of 2017 | End of 2016 | Sources | Var ID |
|---|---|---|---|---|---|
| What are the main funding sources for mortgages? | B.1 | ||||
| Retail funding (deposits/other) | primary | primary | primary | Country Editor | B.1.1 |
| Wholesale funding: loans from other banks or corporations | secondary | secondary | secondary | Country Editor | B.1.2 |
| Funding through mortgage bonds | Non-applicable | Non-applicable | Non-applicable | Country Editor | B.1.3 |
| Funding through securitization of mortgages | quarternary | quarternary | quarternary | SMF | B.1.4 |
| Other | tertiary | tertiary | tertiary | SMF | B.1.5 |
| What % of Residential Mortgage Backed Securities is issued by centralized conduit or liquidity facility? | 100% | 100% | 100% | SMF | B.2 |
| Who are the investors in RMBS? | Domestic Bank, Insurance Company, Mutual Fund, Pension Fund, Corporate, NGO, Individual | SMF | B.3 | ||
| What is the proportion of RMBS in the overall private securities market? | Not available | SMF | B.4 | ||
C. Housing Microfinance
| Variable | End of 2018 | End of 2017 | End of 2016 | Sources | Var ID |
|---|---|---|---|---|---|
| Are non-collateralized housing micro-finance loans offered? | Yes | Yes | Yes | Research | C.1 |
| Types of lenders operating in the housing micro-finance (HMF) sector: | C.2 | ||||
| Commercial banks | Yes | Yes | Yes | Bank BRI | C.2.1 |
| Specialized non-depository MFIs | No | SMF, Divisi Bisnis | C.2.2 | ||
| NGOs | No | SMF, Divisi Bisnis | C.2.3 | ||
| Others | Yes | SMF, Divisi Bisnis | C.2.4 | ||
| None | No | No | No | Research | C.2.5 |
| Typical lending spreads in HMF | >25% | Surveys with industry in 2007-2009. | C.3 | ||
| Level of NPLs (>90 days past due) in HMF | C.4 | ||||
| Are non-collateralized but secured housing finance products offered (e.g. secured by pension or insurance savings) | No | SMF, Divisi Bisnis | C.5 | ||
| Lowest income decile served with all non-collateralized housing lending products | 3 decile | Surveys with industry in 2007-2009. | C.6 | ||