OJK Eases Requirements for Electric Vehicle Loans
Summary
The Financial Services Authority (OJK) has released several incentives to boost electric vehicle production and sales. There are four types of incentives: reducing the credit risk weight, easing credit assessments for the purchase and development of the upstream electric vehicle industry, debtor financing, to credit limit exceptions.
The following are the details of OJK's incentives:
- Relaxation of Risk-Weighted Assets (ATMR) calculation from 75 to 50 percent for EV production and sales.
- Relaxation of credit quality assessment for the purchase of electric vehicles or the development of the upstream electric vehicle industry with a ceiling of up to Rp 5 billion. The assessment can only rely on the compliance of loan principal and interest payments.
- Implementation of sustainable banking by providing loans to debtors. Funding the EV purchase or the development of the upstream EV industry can be categorized as sustainable financing.
- Exceptions to the maximum lending limit (BMPK) in financing the electric vehicles production and relevant infrastructure. The exemptions will apply if guaranteed by a state-owned guarantor or insurance company.