Unscrupulous Developers Accused of Disrupting Mortgage Ecosystem and Housing Industry
Harry Endang Kawidjaja, an expert at the Ministry of Housing and Settlement (PKP), stated that developers and banks have been receiving regular notifications of data mismatches and early warning systems. Therefore, large-scale deviations almost certainly involve intentional actions by certain parties on the ground.
“If numbers pile up, developers can’t possibly be unaware. It could be sales staff or KPR administrators manipulating things,” Harry said in his statement on Sunday, May 24, 2026.
He made the remarks during a Media Discussion on Housing Finance Innovation for Informal Workers in Jakarta on Friday, May 22.
According to Harry, banks already have risk mitigation mechanisms to detect credit disbursement anomalies. When issues arise in a specific area or project, banks can immediately tighten disbursement controls.
“Banks are aware of this, and the mitigation is to reduce disbursements in problematic areas,” he said.
He argued that cases of unscrupulous developers should not erode public trust in the overall housing finance industry, given that the banking sector is highly regulated, with all activities under regulatory oversight and multi-layered monitoring systems.
“It’s like a single drop of ink spoiling a whole pot of milk. Therefore, the entire housing ecosystem must collectively safeguard the industry,” Harry added.
Property analyst Marine Novita warned the public against being tempted to manipulate data to secure mortgage approvals, as such practices could harm consumers themselves.
“Data manipulation is dangerous. Consumers shouldn’t do that,” Marine said.
She also stressed that all stakeholders in the housing ecosystem must maintain public trust in housing finance programmes that have helped people access affordable homes legitimately.
“If this continues, consumers may lose faith, and the industry will suffer. Associations, developers, banks, and the entire ecosystem must work together to protect this business,” she added.
Recently, cases of suspected housing finance irregularities have surfaced in regions including Bali, Palembang, and Karawang. The methods vary, from alleged income data manipulation and using data inconsistent with borrowers’ actual conditions to indications of sales staff and KPR administrators manipulating credit applications.
Such conditions not only harm consumers but also affect banks, which must maintain strict credit quality and governance.
Analysts hope these cases will spur reforms in the national housing industry’s governance without dampening efforts to expand public access to decent housing through healthy and sustainable financing schemes.