Indonesia Housing Credit (KUR) Reaches Rp27.74 Trillion, Rp2.94 Trillion to Building Material Traders
Indonesia's housing credit programme (KUR) had disbursed Rp27.74 trillion by 18 October 2026, with Rp2.94 trillion going to building material traders.
Indonesia's Ministry of Housing and Settlement Areas (PKP) is speeding up KUR housing loans and FLPP subsidised mortgages ahead of the end of the 2026 budget year. This was discussed at an evaluation meeting chaired by Minister Maruarar Sirait, according to a ministry release dated 19 October 2026.
FLPP progress
BP Tapera data as of 19 October 2026 show 184,342 FLPP subsidised mortgages, or 52.67% of this year's 350,000 target: 184,318 landed houses and 24 apartments. October lending up to the 19th reached 19,334 units, already more than the whole of October 2025 (14,746). BP Tapera also counts 39,830 units of potential demand in process and 28,208 subsidised homes available.
The housing credit programme
From 1 January to 18 October 2026, the Housing Credit Programme disbursed Rp27.74 trillion to 115,897 borrowers, 68.21% of the Rp40.67 trillion target. On the demand side, Rp18.28 trillion included Rp13.55 trillion for home renovation to 91,824 borrowers, Rp2.82 trillion for home purchases and Rp1.19 trillion for building homes used for business.
On the supply side, financing reached Rp9.46 trillion for 3,883 borrowers: Rp5.47 trillion to developers, Rp2.94 trillion to building material traders and Rp1.06 trillion to construction service providers.
Why it matters for building-material shops
The Rp2.94 trillion for material traders shows that shops and distributors are formally part of the housing finance ecosystem. Extra working capital can be used to build stock ahead of demand peaks. The large renovation segment (Rp13.55 trillion) points to an active home-repair market needing roofing, tiles, paint and sanitary ware. The minister also said a roof-tile programme (gentengisasi) will run alongside home repair and subsidised housing, involving small businesses and building material producers and suppliers.
Where homeX fits in
As a one-stop building materials and furniture service platform in Indonesia, homeX follows these developments closely. With a showroom, warehousing and delivery based in Tangerang, we aim to help contractors, building-material shops and homeowners get materials of clear quality, visible stock and deliveries they can plan around.
FAQ
What is KUR housing credit used for? On the demand side Rp18.28 trillion, including Rp13.55 trillion for home renovation to 91,824 borrowers; on the supply side Rp9.46 trillion, including Rp5.47 trillion to developers.
How far has FLPP got as of 19 October 2026? BP Tapera recorded 184,342 units, 52.67% of the 350,000 target; October lending to the 19th was 19,334 units, already above all of October 2025.
Housing credit programme Indonesia: related articles and products
Related articles:
- Indonesia Housing Programme Reaches 1.79 Million Units by October 2026: Demand for Building Materials
- FLPP Subsidised Mortgages Reach 185,333 Homes by 20 October 2026, Targeting 350,000
- Rising Building Material Costs of 10–15% Hit Indonesian Developers as Home Sales Weaken
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Source: Kementerian PKP, 19 Okt 2026