{
    "success": true,
    "data": {
        "id": 1754458,
        "msgid": "bi-rate-rises-mortgage-instalments-set-to-grow-more-expensive-1779542747",
        "date": "2026-05-21 12:39:37",
        "title": "BI Rate Rises; Mortgage Instalments Set to Grow More Expensive",
        "author": "Muhammad Idris",
        "source": "KOMPAS",
        "tags": "",
        "topic": "Economy",
        "summary": "Indonesia's BI Rate rose to 5.25% on 20 May 2026, with forecasts of higher commercial lending costs and non-subsidised mortgage rates. REI warns the impact may be felt gradually over two to three months amid weak purchasing power and potential increases in construction costs due to global tensions.",
        "content": "<p>JAKARTA, KOMPAS.com - The BI Rate\u2019s rise to 5.25 percent on\nWednesday, 20 May 2026, is expected to push up home loan instalments.\nThis follows predictions of higher commercial lending rates, including\nnon-subsidised KPR, as a spillover from the BI Rate increase. \u2018Indeed\nthe current conditions are very challenging. The BI Rate increase will\ncertainly drive up commercial rates, including for non-subsidised KPR.\nIts effects will surely burden prospective buyers or consumers who are\ncurrently repaying,\u2019 said the Vice-Chairman of REI, Bambang Ekajaya,\nwhen contacted by Kompas.com on Wednesday, 20 May 2026. Bambang said the\nimpact of the BI Rate increase on the property market is not expected to\nbe felt directly. He said the impact is likely to be felt in two to\nthree months. On the other hand, the property market currently faces\nsignificant challenges as well. Bambang noted that pressure on the\nproperty sector does not only come from potential rises in KPR rates. He\nsaid global conditions can also affect construction costs. He said that\nif the Middle East conflict has not yet subsided, construction costs are\nexpected to rise. \u2018Moreover, if the war in the Middle East is not\nresolved, construction costs will rise sharply. If KPR rates also rise,\nbuyers will certainly hold back,\u2019 he said. He added that such a\nsituation could create layered pressure for the property industry. On\nthe one hand, property prices may rise, while on the other hand,\nconsumer purchasing power is still weak. Bambang said raising property\nselling prices is not an easy step for developers to take in the current\nconditions. In this situation, property sector players are currently\ntending to take a cautious approach in conducting their business. He\nsaid the chosen strategy now is to continue marketing projects that are\nalready available while waiting for market conditions to normalise.\n\u2018Right now the best approach is wait and see while continuing to market\nwhat exists,\u2019 he said. He added that some developers are expected to\nhold off on new project development until conditions return to normal.\n\u2018But new projects, in my view, should be put on hold until everything\nreturns to normal,\u2019 he concluded.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/bi-rate-rises-mortgage-instalments-set-to-grow-more-expensive-1779542747",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}