21 Apr 2021

Zero Percent Down Payment Policy, What Expert Says

The Covid-19 pandemic hit Indonesia in March 2020 brought multi-sector economic declines. After one year of struggling with the pandemic, the government took action to recover the economic condition, one of them is the Zero Percent Down Payment (DP 0%). The Central Bank of Indonesia (Bank Indonesia-BI) decides to implement a free down payment policy or popularly known as DP 0% for housing and vehicle purchase starting on March 1, 2021, until December 31, 2021. The government is optimistic that with the start of vaccination, the public will be more confident to resume their economic activities, thus recover the economic condition.

Responding to this policy, Prof. Hunik Sri Runing Sawitri, M.Si., an economist from the Faculty of Economics and Business, Universitas Sebelas Maret (FEB UNS) Surakarta, states that the policy is, indeed, aiming to stimulate the declining automotive and property market. However, there is no clear signal toward that direction, there is still no significant effect.

The government policy launched yesterday has not been able to make a significant impact, even though Bank Indonesia has seen the sign of economic recovery, but many factors are affecting the outcome, such as how small and medium enterprises (SME). The expectation is for the economic condition to return to normal and the public resuming their activities. In reality, the government still imposing social restrictions, which made us reconsider our decision to take debt, entrepreneurs will also rethink their decision for expansion,” Prof. Hunik explains during RRI Morning Talk, Tuesday (02/02/2021).

Today, there is no significant impact, while the public is waiting for the result of vaccination. The DP 0% program attracts public interest for a moment, but they will be burdened with the installment. However, Prof. Hunik encourages the community to stay optimistic. The government has taken many efforts and providing great assistance to overcome the challenges during the pandemic. The DP 0% policy is expected to improve the community economy. Hopefully, the vaccination effort will be successful and the government will reduce the mobility restriction policy. Therefore, improving optimism and developing the Indonesian economic condition.

On the other hand, Prof. Hunik finds unique phenomena during the Covid-19 pandemic. In this ongoing pandemic, there are many new entrepreneurs in online business that can support the household economy sufficiently. These online businesses offer various merchandise such as fashion, food, and even vegetable. The phenomena show the public creativity during this hard period.

Prof. Hunik hopes that the community can find new opportunities when their past business failed during the Covid-19 pandemic. Indonesian people are expected to never give up, always come up with new business ideas, for example, online businesses. (Humas FEB)