THE IMPACT OF COVID-19 ON THE MARKETING OF HOME LOAN FACILITY SCHEME (HLFS) Agustining (1*), Agus Yudha Hernoko, Bismar Nasution, and Sunarmi
1) Universitas Sumatera Utara, Medan-Indonesia
*agustiningyasdan[at]gmail.com
Abstract
Housing is the basic need of human being. The 1945 constitution has mandated the government to rule such need. Law Number 1 of 2011 on Housing and Resettlement Area and Regulation of the Minister of Public Works and Housing Number 20/Prt/M/2019 on Low Income Group (LIG) Homeownership Support) are two of government regulations regarding housing facility for LIG. The government also provides homeownership support for LIG through the Home Loan Facility Scheme (HLFS). The country provides a subsidy for LIG through the HLFS based on the Government Regulation Number 64 of 2016 on Low-Income Group Housing Project. This study explores why the banking institutions tighten the HLFC requirements for LIG during the Covid-19 pandemic? This study applies a normative juridical approach with qualitative data analysis. The results show that (1) Since the issuance of the Presidential Decree Number 12 of 2020 on Determining Non-Natural Disaster of the Covid-19 as a National Disaster, banking institutions require that prospective HLFC debtors must have the fixed income from companies without any impact from the Covid-19 pandemic. (2) LIG applying for the HLFS mostly have a non-fixed income. In conclusion, the HLFS cannot be provided to all non-fixed income LIG due to the bank policy during the Covid-19 pandemic.
