Proceedings of the International Conference on Business, Economics, Social Sciences, and Humanities - Economics, Business and Management Track (ICOBEST-EBM 2024)

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Sustainability of Loan-To-Value Policy and Mortgage Market in Indonesia: Supply-Demand Analysis

Authors
Auryn Khansa Maharani1, *, Rofikoh Rokhim2
1Faculty of Economics and Business, Universitas Indonesia, Depok, Indonesia
2Faculty of Economics and Business, Universitas Indonesia, Depok, Indonesia
*Corresponding author. Email: auryn.khansa@ui.ac.id
Corresponding Author
Auryn Khansa Maharani
Available Online 29 July 2024.
DOI
10.2991/978-94-6463-465-5_7How to use a DOI?
Keywords
Mortgage; LTV; Supply; Demand
Abstract

We examine the effectivenes of Loan-to-Value (LTV) ratio policy in shifting the mortgage market in Indonesia through the supply-demand framework. The observation falls in the periode of 2012-2022 and analysed using two-stage least square (2SLS) methods. The results indicate that the demand side is indicated to be more responsive towards the LTV policy and the biggest difference happened when the market were in bust. by the LTV than the supply side. Furthermore, it is found the indication the most effective LTV happened when supply and demand moved in parrallel. However, it is indicated that the LTV will only be effective when there is surplus in mortgage market, not in equilibrium. This finding is different from prevailing studies about LTV policy and demand for mortgage.

Copyright
© 2024 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the International Conference on Business, Economics, Social Sciences, and Humanities - Economics, Business and Management Track (ICOBEST-EBM 2024)
Series
Advances in Economics, Business and Management Research
Publication Date
29 July 2024
ISBN
10.2991/978-94-6463-465-5_7
ISSN
2352-5428
DOI
10.2991/978-94-6463-465-5_7How to use a DOI?
Copyright
© 2024 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Auryn Khansa Maharani
AU  - Rofikoh Rokhim
PY  - 2024
DA  - 2024/07/29
TI  - Sustainability of Loan-To-Value Policy and Mortgage Market in Indonesia: Supply-Demand Analysis
BT  - Proceedings of the International Conference on Business, Economics, Social Sciences, and Humanities - Economics, Business and Management Track (ICOBEST-EBM 2024)
PB  - Atlantis Press
SP  - 78
EP  - 91
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-465-5_7
DO  - 10.2991/978-94-6463-465-5_7
ID  - Maharani2024
ER  -