Construction Credit Growth Boosts Property Market in Indonesia by End of 2025
The end of 2025 has become a positive momentum for Indonesia’s property market, especially in the construction segment. According to Bank Indonesia, new construction significantly increased lending volumes. In November 2025, property lending grew by 7.4% year-on-year, significantly higher than the previous month.
The main driver of this growth was the exceptional increase in construction loans, which reached 8.1% year-on-year. For comparison, in November 2024, this figure was only 1.2%.
According to Trioksa Siahaan, Vice President of the Indonesian Banking Development Institute, infrastructure construction projects began to be actively implemented towards the end of the year, spurring a rise in loan demand.
This trend is also supported by the government housing program, interest rate stabilization, and improved credit quality. Bank Tabungan Negara (BTN) and Bank Central Asia (BCA) also noted growth, especially in their housing and construction loan segments.
BCA shows remarkable results, with a growth in construction loans up to IDR 43.5 trillion, which is a 19.7% year-on-year increase.
Positive trends are also observed in regional banks like BPD Bali, which optimize products to finance central and regional government projects. The overall improvement in credit quality in 2025 indicates significant changes in the market.
Comparing these developments with the past year and looking forward, banking institutions plan to continue supporting this trend, despite challenges with liquidity and tightened credit conditions.
