JAKARTA, Jan 17 (Reuters) -
* Indonesia’s financial services authority (OJK) has removed downpayment requirements for vehicle loans extended by some multi-finance companies in a bid to boost economic growth, according to a statement on Thursday.
* The auto industry has a big share in Southeast Asia’s largest economy, and car and motorcycle sales are often used as key indicators of domestic consumption.
* Bambang W. Budiawan, the head of monitoring at OJK, said only “healthy” multi-finance companies with non-performing financing (NPF) ratio below 1 percent are allowed to offer zero percent downpayment for vehicle purchases with credit.
* Downpayments of at least 10 percent must be assessed by firms with a higher NPF ratio.
* Under previous rules, customers had to make a downpayment of at least 20 percent for motorcycle purchases and 25 percent for cars, similar to rules for banks. (Reporting by Tabita Diela; Editing by Richard Borsuk)