{
    "success": true,
    "data": {
        "id": 1754164,
        "msgid": "developers-hit-hard-sluggish-sales-expensive-materials-bi-rate-rises-1779542812",
        "date": "2026-05-21 10:40:00",
        "title": "Developers Hit Hard: Sluggish Sales, Expensive Materials, BI Rate Rises",
        "author": "Muhammad Idris",
        "source": "KOMPAS",
        "tags": "",
        "topic": "Property",
        "summary": "Rising BI Rate to 5.25% and the ongoing Middle East conflict threaten higher construction costs and weigh on property demand. Developers are cautious, continuing to market existing projects while delaying new developments as mortgage rates rise and buyers' purchasing power remains weak. The effects are not expected to be felt immediately, but could emerge within two to three months.",
        "content": "<p>An article published on Kompas.com reported that the conflict in the\nMiddle East and the central bank\u2019s decision to raise the BI Rate to 5.25\nper cent on Wednesday 20 May 2026 could push up construction costs and\naffect the viability of the property sector. Deputy Chairman of REI,\nBambang Ekajaya, said that if the fighting in the Middle East does not\nease, construction costs are likely to rise. \u2018Moreover, if the war in\nthe Middle East remains unresolved, construction costs will rise\nsharply. If mortgage rates (KPR) non-subsidised also climb, it will\nsurely deter potential buyers,\u2019 Bambang said when contacted by\nKompas.com on 20 May 2026. He added that the situation could create\nlayered pressure on the property industry. On one hand property prices\ncould rise, while on the other hand consumer purchasing power remains\nweak. Bambang said raising property selling prices is not an easy step\nfor developers in the current conditions. Meanwhile, the BI Rate\nincrease is expected to affect rising commercial interest rates,\nincluding non-subsidised mortgages. The situation is seen as potentially\nadding to the burden on households, both prospective homebuyers and\nthose still repaying loans. \u2018Indeed, conditions are challenging. The BI\nRate increase will push up commercial rates, including for\nnon-subsidised mortgages. The impact will certainly be burdensome for\nbuyers and for those repaying,\u2019 Bambang said. He noted that the effect\non the property market is not expected to be immediate. He believes the\nimpact will likely be felt in two to three months. Meanwhile, the\nproperty market is already facing significant challenges. Amid this,\nproperty players are taking cautious steps in their business. The\nstrategy now is to stay marketing the projects already available while\nmonitoring market developments. \u2018Right now the best approach is wait and\nsee while continuing to market what is available,\u2019 he said. He added\nthat some developers are expected to delay new project plans until\nconditions stabilise. \u2018But for new projects, in my view, hold off until\neverything returns to normal,\u2019 Bambang concluded.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/developers-hit-hard-sluggish-sales-expensive-materials-bi-rate-rises-1779542812",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}