The Capital Market Seen as a New Funding Solution

The Regional Board of Real Estate Indonesia (REI) for DKI Jakarta is urging property developers to use the capital market as a long-term financing alternative amid the tightening of bank credit, while also resuming donations to 1,000 orphans and the underprivileged during Ramadan this year. Chairman of the DPD REI DKI Jakarta, Arvin F. Iskandar, said the banking sector in recent years has tended to be more cautious toward the property industry in the post-pandemic period. This has led to increasingly stringent loan approvals for developers and for consumers, including for home loans (KPR) and housing loans (KPA). “The property industry has long project cycles and large working capital needs. In a volatile market, reliance on bank financing alone is no longer sufficient to sustain long-term growth,” Arvin said recently. According to Arvin, financing for developers has historically depended on around 30% equity and 70% bank financing. He said the capital market could be an alternative long-term financing route, whether through equity issuances or debt securities such as bonds and Efek Bersifat Utang dan/atau Sukuk (EBUS). However, he concedes there are still doubts among developers, especially mid-scale ones, because entering the capital market is seen as complex and requires high governance and transparency. “Yet access to it is actually open,” Arvin added. In addition to conducting non-bank financing education, REI DKI Jakarta on Thursday (5/3) also resumed distributing donations to 1,000 orphans and the underprivileged at Graha Ali Sadikin, City Hall in DKI Jakarta. The Ramadan‑time activity has been held since 1998 and this year again in collaboration with the Jakarta Provincial Government. The event was attended by Uus Kuswanto, Secretary to the Jakarta Provincial Government, along with several department heads and related officials. In his remarks, Uus appreciated REI DKI Jakarta’s consistency in providing annual donations during Ramadan. “The partnership built with REI DKI Jakarta has long been about more than business; it is also humanitarian in nature. This is part of the collaboration needed to build Jakarta,” Uus said. This year’s charity drive carries the theme Weaving Care, Strengthening Jakarta. Arvin said the event forms part of REI DKI Jakarta’s commitment to continue synergising with the government and the community. He noted that recipients come from 12 orphanages across five districts in Jakarta. He also expressed thanks to the donors and all parties supporting the event. “We are proud that this activity has been held twice at City Hall, a symbol of service and dedication to the community,” Arvin said. Indonesia is facing what authorities describe as a growing backlog crisis in housing, with about 9.8 million households reportedly without their own homes. The government emphasises continuing to promote financing through Kredit Usaha Rakyat (KUR) as the primary instrument to boost the competitiveness of micro, small, and medium enterprises. Bank Rakyat Indonesia (Persero) Tbk continues to show positive performance through solid credit growth as it strengthens financing for micro, small, and medium enterprises. An increase in debt-collection violence by debt collectors has become a stern warning for the national financing industry. At three in the morning, while many teenagers are still asleep, Jeni Adilasari has already begun her day in a modest home in Bojonegoro. PT Bank Danamon Indonesia and PT Adira Dinamika Multi Finance are back at the Indonesia International Motor Show 2026 (IIMS) 2026.