JAKARTA – The housing and property developers were more likely to rely on internal funds to cover the costs of its construction projects within the second quarter of 2022. This data was featured in the Residential Property Price Survey of Bank Indonesia quoted today (18/8).
Erwin Haryono, Executive Director and Head of Communication Department of Bank Indonesia (BI), revealed that the survey indicated that 64.82% of the funding source for residential property constructions in Q2 2022 originated from non-bank institutions. “Meanwhile, the capital needs fulfilled by bank credits and consumer financing made up the other 21.29% and 9.07%, respectively,” he added.
In detail, the internal funds utilised for these projects consist of retained earning and paid-up capital, each of which has a portion of 48.19% and 46.96%.
Meanwhile, 74.79% of consumer financing for housing procurement utilised housing ownership credit (lit. Kredit Pemilikan Rumah/KPR) programs, while another 16.61% used systematic cash payment and the remaining 8.42% opted for direct cash payment. However, despite the popularity of KPR programs, the total value of KPR and apartment ownership credit (lit. Kredit Pemilikan Apartemen/KPA) slowed down 7.07% year-on-year (yoy) in Q2 2022. (LK/ZH)