Mortgage in Indonesia in 2025

Indonesia’s mortgage market in 2025 is undergoing significant changes due to governmental policies, foreign investments, and fluctuations in interest rates. For local homebuyers and international investors, this is an opportune time to explore property financing options in Indonesia.

Government Legislation and Market Expansion

President Prabowo Subianto’s administration aims to construct 3 million affordable houses per year. To support this initiative, Bank Indonesia (BI) has earmarked $7.9 billion for housing development and relaxed the reserve requirements for banks, freeing up an additional $4.9 billion for housing loans. These measures significantly improve mortgage accessibility and promote homeownership across the country.

Mortgage Accessibility for Foreigners

Foreign investors can also secure an Indonesian Property Loan (IPL) in IDR, USD, or AUD, with a minimum deposit requirement of 40%. Additionally, some developers offer installment payment plans, making it easier for non-residents to invest in high-demand areas such as Bali, Jakarta, and Surabaya.

Indonesia’s central bank has maintained its benchmark interest rate at 5.75%, but potential rate cuts are anticipated to stimulate economic growth. Lower interest rates will make mortgages more affordable and encourage real estate investment.

Market Growth Projections

The Indonesian residential real estate market is projected to grow from $77.84 billion in 2025 to $114.11 billion by 2030, driven by rapid urbanization and increased investment. With property values appreciating steadily, now is a strategic time to enter the market.

Why Now is a Good Time to Buy

Several factors make 2025 an ideal time to invest in Indonesian real estate:

• Prospective Interest Rate Cuts: Potential reductions in borrowing costs make home loans more affordable.
• Rising Property Values: The upward trend in real estate prices ensures solid investment returns.
• Government Support for Homeownership: Various programs and financial incentives are making mortgages more accessible.
• Opportunities for Foreign Investment: Expanding property laws and loan availability facilitate international investments.

Conclusion

With a booming property market and government-backed mortgage initiatives, 2025 presents a prime opportunity for both local and foreign investors to secure property in Indonesia. Whether you are looking for mortgage lenders or guidance on buying property, DDA Real Estate is here to assist you. We offer a wide range of services, from consulting to property acquisition, ensuring a seamless investment process.