BI: Mortgages Still Dominant as Residential Property Slows in Q1 2026

JAKARTA - Bank Indonesia (BI) records that Home Ownership Credit (KPR) remains the primary scheme for house purchases in the primary market during the first quarter of 2026, amid the slowdown in the residential property sector.

Results from BI’s Residential Property Price Survey (SHPR) show that the share of house purchases through KPR reached 69.87 percent of the total house purchase schemes.

“Most primary house purchases are conducted through KPR, with a share of 69.87 percent of the total purchase schemes,” BI stated in its Q1 2026 SHPR report.

Meanwhile, house purchases through instalment cash payments have a share of 19.61 percent. Full cash purchases reached 10.53 percent.

On the other hand, the total value of KPR grew by 4.79 percent year-on-year (yoy), slowing compared to 7.05 percent in the previous quarter.

“Quarter-on-quarter, KPR values grew by 0.37 percent (qtq), slowing compared to 1.72 percent (qtq) in Q4 2025,” BI wrote.

Meanwhile, bank loan financing stood at 13.74 percent, and consumer payments at 5.60 percent.

The slowdown in the property market also occurs as the government continues to promote the 3 million houses construction programme.

“We are thinking about how we can boost our economy and how we can achieve 8 percent economic growth,” said Hashim at the event Supporting the President’s Priority Programme for 3 Million Houses in Cikarang, West Java, on Sunday (8/3/2026).

According to him, the housing sector has a large multiplier effect on the national economy.

“The housing industry has a very large multiplier effect on the economy,” Hashim stated.

“Some calculations put its impact at around 1.5 times, even some say it can reach up to 2.5 times,” he continued.

Hashim said there are around 185 economic sectors directly related to the property business, construction, and housing development.