Record: Indonesia's Property Loans Exceed 1,000 Trillion Rupiahs

The Indonesian property market is facing challenges despite reaching a significant milestone: property loans have surpassed 1,000 trillion rupiahs. According to data from Bank Indonesia, there was a 5.96% increase year-on-year, reaching 1,002.86 trillion rupiahs by November 2025. Growth has slowed throughout the year, reflecting overall stagnation. The sector’s outlook remains concerning due to rising non-performing loans. Defaults are increasing in most segments, and banks are becoming more selective, affecting fund availability. However, society continues to rely on bank loans for home purchases, with 74.41% of homes financed this way. This trend persists despite rising defaults and slow growth in the Property Price Index. Expectations for 2026 involve new challenges and opportunities for the property sector.