BI-Rate 5.75%, LTV 100% to 2027 and Rp11.77T PKP Budget: Materials
BI-Rate in October 2026, LTV/FTV 100% and the 2027 housing budget shape financing costs and the flow of housing projects. As of 23 October 2026: the Bank Indonesia Board of Governors meeting on 20–21 October 2026 held the BI-Rate at 5.75% and the Lending Facility at 6.50%, and raised the Deposit Facility by 25 bps to 5.00%. BI extended the maximum 100% LTV/FTV for landed houses, flats and shophouses/shop offices from 1 January to 31 December 2027 for banks meeting the NPL/NPF criteria. Bank mortgages grew 4.2% YoY to Rp858.3 trillion (August 2026). Commission V of the House approved the 2027 PKP Ministry ceiling of Rp11.77 trillion: Rp10.85 trillion (92.23%) for housing programmes, with BSPS at Rp8.67 trillion for 315,000 units.
Key facts on financing and housing budget (as of 23 Oct 2026)
| Indicator | Figure | Period | What it means for building-material buyers | Source |
|---|---|---|---|---|
| BI-Rate; Lending Facility; Deposit Facility | 5,75%; 6,50%; 5,00% (naik 25 bps) | Meeting 20–21 Oct 2026 | BI-Rate was not cut; project borrowing costs do not automatically get cheaper | Kompas |
| Property LTV/FTV | Max 100% (banks meeting NPL/NPF criteria) | 1 Jan–31 Dec 2027 (previously until 31 Dec 2026) | Loose down-payment rules continue for another year | Katadata |
| Bank mortgage growth | 4.2% YoY; Rp858.3 T | August 2026 (4.3% the month before) | Mortgage growth slowed slightly | Kontan |
| 2027 PKP Ministry ceiling | Rp11.77 T (housing programme Rp10.85 T = 92.23%) | Approved by Commission V, 24 Sep 2026 | Funding for 2027 government housing programmes | Kementerian PKP |
| BSPS (home renovation aid) 2027 | Rp8.67 T; 315,000 units | 2027 ministry budget plan | Unit target below 400,000 (2026), about −21.3% | Pantau |
| Ideal budget need vs ceiling | Rp106 T; shortfall Rp94.23 T | 2027 | Needs exist that are not yet allocated | Kementerian PKP |
| 2026 PKP budget | DIPA Rp10.30 T (406,260 units) → Rp12.53 T (414,212 units) with Rp2.21 T supplementary | As of 19 Aug 2026 | 2027 ceiling is about 6.1% below the 2026 budget after supplementary funds and about 14.3% above the initial DIPA | ANTARA (PKP) |
| FLPP realisation; 2026 renovation-aid target | 459,468 units (2025–14 Oct 2026); renovation-aid target 400,000 units (2025: 45,000) | As of 14 Oct 2026 | 2026 programme material demand is still running | Kementerian PKP (roadmap) |
| Housing Programme Credit | Rp27.37 T; 114,672 borrowers (incl. developers, contractors, building-material traders, MSMEs) | As of 14 Oct 2026 | There is a credit channel for building-material traders | Kementerian PKP (roadmap) |
| Housing KUR | About Rp50 T; ~87 thousand houses renovated, ~18 thousand bought/built | 2026 (as of 24 Sep) | Home renovation is a financed segment | Kementerian PKP |
Data as of 23 October 2026 from the linked sources; figures may be revised. Percentages are computed from source figures: 315,000 vs 400,000 units = −21.3%; Rp11.77 T vs Rp12.53 T = −6.1%; Rp11.77 T vs Rp10.30 T = +14.3%. The BI press release could not be accessed from our network, so BI figures are cited via Kompas, Antara and CNBC. This article is general information, not financial advice.
Financing: rates unchanged, down payments stay loose
BI held the BI-Rate at 5.75% and raised the Deposit Facility, so this decision gives no rate-cut signal. On the other hand, extending LTV/FTV 100% to 31 December 2027 keeps loose down-payment rules for qualifying banks. Mortgages growing 4.2% YoY show housing credit demand is not yet strong. For building-material buyers this means project financing still has to be calculated at current rates; banks may set LTV tighter than the maximum.
2027 budget: unit target falls, needs unmet
The 2027 PKP ceiling of Rp11.77 T is about 14.3% above the initial 2026 DIPA (Rp10.30 T) but about 6.1% below the 2026 budget after supplementary funds (Rp12.53 T). The 2027 BSPS target of 315,000 units is about 21.3% below the 2026 target of 400,000 units, while the ideal need of Rp106 T still leaves a Rp94.23 T shortfall. For stock and quotation planning, 2026 government programmes run to year-end, while 2027 volume depends on extra allocations not yet decided.
Buyer tips
- Ask for written quotes with a price validity period.
- Schedule staged deliveries to match project fund releases.
- Confirm LTV terms and rates directly with the bank.
- Watch budget and programme announcements before adding stock.
Request a BI-Rate October 2026 housing quote for your project
homeX can compare several brands at once and prepare a written quote for projects, renovations or shop stock. Send your needs (brand, size, quantity, location) via WhatsApp +62 821 1818 998, or visit the homeX showroom: Priskilla Tower, 6th floor, Jl. Atang Sanjaya No.21, Benda, Kota Tangerang, Banten 15125.
Disclaimer: prices change without notice and differ by store, city, pack size, grade and promotion. Data as of 23 October 2026; always confirm with the seller before buying.
FAQ
BI-Rate in October 2026? 5.75%, held at the 20–21 October 2026 meeting; Lending Facility 6.50% and Deposit Facility 5.00%.
Until when does LTV/FTV 100% apply? Extended for 1 January–31 December 2027 for banks meeting NPL/NPF criteria.
2027 PKP Ministry ceiling? Rp11.77 trillion; BSPS Rp8.67 trillion for 315,000 units.
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Price sources (checked 23 October 2026): Kompas — BI holds benchmark rate at 5.75%; ANTARA — BI-Rate unchanged at 5.75 percent; CNBC Indonesia — October 2026 BI meeting decisions; Katadata — BI extends LTV 100% to December 2027; Kontan — LTV extension and mortgage growth; Kementerian PKP — Commission V approves 2027 ceiling (24 Sep 2026); Kementerian PKP (roadmap) — 2025–2029 roadmap with Bappenas (14 Oct 2026); Pantau — Rp10.85 T allocation, BSPS largest; ANTARA (PKP) — PKP budget realisation to 19 August.