KPR scheme helps middle economic class in Bali own homes

Denpasar (ANTARA) - The Bank Indonesia (BI) Representative Office for Bali Province has stated that the mortgage scheme (KPR) is helping Balinese residents, particularly the middle economic class, to own homes amid the challenge of rising property prices.

“Residential property prices in the primary market in Q2 2026 experienced an increase,” said Head of BI Bali Achris Sarwani in Denpasar on Sunday.

He explained that the KPR scheme still accounts for the largest share of home purchases, at 67.6 percent of total home purchases.

Based on the results of the Residential Property Price Survey (SHPR), the Residential Property Price Index (IHPR) in Q2 2026 grew by 1.02 percent, higher than the 0.87 percent recorded in Q1 2026.

The increase, he said, was caused by rising prices for medium-sized properties, namely houses with a building area of between 36 square metres and 70 square metres, and large houses with a building area above 70 square metres.

He explained that the rise in house prices was still due to increased production costs, namely the increase in building material prices as the main factor, followed by higher labour wages.

In addition, the survey results also indicated that price pressure also stemmed from increased licensing costs, rising fuel oil (BBM) prices, and the addition of housing facilities and social facilities.

Meanwhile, amid the trend of rising property prices, developers in Bali consider a number of factors to remain challenges in primary residential property sales.

These main obstacles include high KPR interest rates, limited land availability, tax burdens, and large down payments for home purchases.

Meanwhile, from the developer side, the main source of funding for residential property development in Bali still comes from internal funds at 56.6 percent.

This is followed by bank loans, customer funds, and loans from non-bank financial institutions.

BI observes that residential property prices in Bali are expected to continue to increase in Q3 2026, both in land prices and house prices, including for houses purchased through cash schemes or KPR.

“But the expectation of price increases is relatively limited, in line with public caution in making price adjustments amid sales conditions that still face various challenges,” said Achris.