Property Financing Soared 11.4 Percent Throughout May
By : Herry Barus And Aldi Firhand. A | Friday, July 13 2018 - 21:20 IWST

Property Illustration
INDUSTRY.co.id - Jakarta- Total financing for the property sector in Indonesia in May 2018 grew 11.4 percent compared to May 2017 or exceeded Rp840.3 trillion, most of which was supported by property loans of domestic banks, the Central Bank said.
The Assistant Governor of Bank Indonesia's Macroprudential Policy Department Filianingsih Hendarta in Jakarta, Thursday (12/7/2018) said that domestic property credit until May 2018 reached Rp741.7 trillion, and financing sourced from Foreign Debt (ULN) of Rp80.6 trillion and Domestic Securities Rp18 trillion.
"Growth in financing sources in the property sector is showing an upward trend over the past year, driven primarily by growth in property loans originating domestically," he said.
Fili claims the relaxation of the credit value of total collateral (Loan to Value) conducted in August 2016 also has a medium-term effect and sustains the growth of mortgages to date. It also made the Central Bank loosen back the LTV ratio until the total elimination of LTV for the first house of all types on August 1, 2018.
As in May 2018, mortgages lifted 12.75 percent (yoy), or doubled its growth in the past two years when in May 2016, mortgages only grew moderately at 6.21 percent (yoy).
Mortgage also surpassed the average credit growth of banks in May 2018 grew 10.26 percent (yoy).
The highest mortgage growth is channeled for financing of flat / apartment type 22-70 square meters and more than 70 square meters, as well as a type 22-70 square meter tread house and more than 70 square meters.
"The ability to pay from debtors is also still very good, so the KPR can still continue to be lifted in the middle of this year," he said.
The Central Bank projected mortgage growth to grow by 13.46 percent (yoy) by the end of 2018 as the stimulus from LTV exemption for the first house of all types applied as of 1 August 2018
Read Also
Savyavasa and Permata Bank Launch Exclusive Foreign Mortgage Program
Boediman Widjaja's Technology Ready to be Adopted in Jababeka Industrial…
SUNeVision Initiates MEGA IDC Phase Two Development
President Prabowo Orders Massive Dissemination of Pro-People Policies…
Boediman Widjaja, Hero of Environmentally Friendly Building Materials…
Today's Industry

Rabu, 21 Mei 2025 - 10:09 WIB
Indonesia, Thailand Sign MoU on Health Sector, Focusing on Global Capacity, Collaboration
As a part of President Prabowo Subianto’s official visit to Thailand, both countries signed a Memorandum of Understanding (MoU) on health sector, in an effort to strengthen bilateral cooperation…

Rabu, 21 Mei 2025 - 10:06 WIB
Indonesia, Thailand Deepen Cooperation on Security, Trade, and Regional Stability
resident Prabowo Subianto has reaffirmed Indonesia’s strong commitment to deepening bilateral relations with Thailand during the meeting with Thailand’s Prime Minister Paetongtarn Shinawatra…

Jumat, 02 Mei 2025 - 10:46 WIB
Binawan and Government Support Indonesian Nurses in Europe through Scholarships
In the midst of the viral #KaburAjaDulu hashtag as a symbol of the young generation's disappointment with domestic working conditions, Binawan responded with real action: dispatching Indonesian…

Jumat, 28 Maret 2025 - 22:07 WIB
TDL Records New Revenue Record of IDR 25 Trillion in 2024 Ahead of 50th Anniversary
PT Metrodata Electronics Tbk (MTDL), the largest technology Company with the most complete IT and telecommunications products in Indonesia, managed to record a revenue of IDR 25 trillion in…

Jumat, 28 Maret 2025 - 22:00 WIB
Wireless Logic Selected By Thales As IoT Connectivity Partner
Wireless Logic, a global leader in IoT connectivity solutions has been selected by Thales, a global leader in advanced eSIM technologies, to enable secure, scalable and resilient IoT connectivity…
News Comment