Banking - Property credit jumps 13% yoy

Banking - Property credit jumps 13% yoy Credit disbursement to the property sector in 2025 grew by 13.0% yoy to IDR1,597.7 tn. A significant surge is expected in credit disbursement to the construction segment. Based on data from Bank Indonesia (BI) on Money Supply (M2) as of Sunday, January 25, 2026, property credit for mortgages (KPR) and home ownership loans (KPA) grew moderately by 6.8% yoy to IDR850.5 tn. Real estate credit increased by 8.6% yoy to IDR253.2 tn. Meanwhile, property credit to the construction segment jumped 28.2% yoy to IDR504.0 tn in December 2025. For the construction sector, this credit disbursement performance is a positive sign after several years of stagnant growth (0.0% yoy in 2024) or even a decline (-0.2% yoy in 2023). Furthermore, in 2026, the property sector itself is believed to have bright prospects with a series of supporting factors, ranging from lower credit interest rates, government-borne Value Added Tax (VAT) incentives for purchasing landed houses and apartments, to higher economic growth supporting the recovery of public purchasing power. (Source : Investor Daily)