2026-10-23T15:33:56

Construction Credit August 2026 +49.5%: What It Means for Building Materials

Construction credit August 2026 was Rp585.3 trillion, up 49.5% year-on-year (y-on-y), while Indonesia property loans 2026 stood at Rp1,724.7 trillion in August (+18.3% y-on-y), with mortgages (KPR/KPA) at Rp858.3 trillion (+4.2%) and real estate credit at Rp281.1 trillion (+15.8%), per Kontan quoting the Bank Indonesia (BI) money supply analysis report (24 September 2026). Total bank credit was Rp9,019.3 trillion (+13.3%). On 21 October 2026 BI also announced a staged Bank Indonesia reserve requirement cut 2026: conventional commercial banks from 9% to 8% (1 November) then 7% (1 December 2026). homeX calculation: construction credit is about 34% of property credit and 6.5% of total credit. Credit figures are financing balances, not material purchases, so any meaning for cement, steel or ceramic prices is homeX analysis, not data.

Construction credit data for August 2026 and the reserve requirement cut

Indicator	Figure	Period / date	Remarks	Source
Construction credit	Rp585.3 trillion; +49.5% y-on-y (July: +49.7%)	August 2026; Kontan 24 Sep 2026	August 2025 Rp391.4 trillion (CNBC); up Rp193.9 trillion in a year	Kontan
Property credit (total)	Rp1,724.7 trillion; +18.3% y-on-y (July: +18.4%)	August 2026	homeX calculation: 19% of total bank credit	Kontan
Mortgages and apartment loans (KPR/KPA)	Rp858.3 trillion; +4.2% y-on-y (July: +4.3%)	August 2026	homeX calculation: about 50% of property credit	Kontan
Real estate credit	Rp281.1 trillion; +15.8% y-on-y (July: +16%)	August 2026	homeX calculation: about 16% of property credit	Kontan
Total bank credit and money supply (M2)	Credit +13.3% y-on-y (Rp9,019.3 trillion, Kontan); M2 Rp10,448.1 trillion, +8.2%	August 2026; BI 24 Sep 2026	BI: M2 was mainly influenced by credit disbursement	Bank Indonesia
Monthly change in construction credit	+Rp1.7 trillion in July and August; December 2025 +Rp73.8 trillion; March 2026 +Rp54.4 trillion	Calculated by CNBC from balance differences; 25 Sep 2026	Change in balance, not new disbursement; CNBC: credit cannot yet be linked to a specific programme or issuer	CNBC Indonesia
Cement revenue in H1 2026	SMGR +18.1%; SMCB +12.0%; CMNT +8.5%; INTP +5.7%; SMBR down about Rp132.62 billion	H1 2026 (ended June); CNBC 25 Sep 2026	Does not yet capture July-August; results differ by issuer	CNBC Indonesia
BI decision 21 Oct 2026	BI-Rate 5.75%; conventional bank reserve requirement 9% → 8% (1 Nov) → 7% (1 Dec); Islamic banks 7.5% → 5.5%; KLM 6% → 5% (1 Dec)	Board of Governors meeting 20-21 Oct 2026	Property LTV/FTV of 100% extended to 31 Dec 2027	Bank Indonesia
Bank credit in September and 2026 projection	September credit +13.26% y-on-y; 2026 projection 8-12%; deposits +8.22%; gross NPL 2.11% (August)	September 2026 (NPL August 2026)	Undisbursed loan facilities Rp2,562.57 trillion (21.70% of ceilings)	Bank Indonesia
Rupiah rate and inflation	Rp17,985 per US dollar (20 Oct 2026); September CPI inflation 3.28% y-on-y	20 Oct and September 2026	Rupiah weakened 0.61% from end-September (BI)	Bank Indonesia

Credit and August 2026 growth figures come from Kontan (24 September 2026) quoting the BI money supply analysis report, supplemented by the BI money supply press release (24 September 2026) and the BI Board of Governors press release of 20-21 October 2026; the monthly changes and cement data come from CNBC Indonesia Research (25 September 2026) and may be revised. The share percentages (34%, 6.5%, 19%, 50%, 16%) are homeX calculations. Data gaps: we did not read the BI statistical tables directly (only press releases and Kontan, a secondary source for the credit segment figures); there is no breakdown of construction credit by project or recipient sector; no building-material sales data for July-August; and no building-material price data in these sources.

Property loans 2026: mortgages slow, construction surges

Kontan writes that each property credit segment slowed slightly in August 2026, with mortgages (KPR/KPA) only +4.2% y-on-y, in line with consumer credit +5%, while construction credit grew +49.5%. CNBC notes that most of the one-year increase happened before August: the July and August monthly increases were only Rp1.7 trillion each. For home buyers, slowly growing mortgages fit the subsidised mortgage and 100% LTV topics in our earlier articles.

The 2026 bank reserve requirement cut and lending to the real sector

BI cuts the average reserve requirement of conventional commercial banks from 9% to 7% (1% on 1 November and 1% on 1 December 2026) and of Islamic banks from 7.5% to 5.5%, and keeps loose macroprudential policy to push credit to the real sector. BI also records undisbursed loan facilities of Rp2,562.57 trillion. Whether the extra liquidity will flow to construction credit or mortgages is not yet in the data.

What it means for building material buyers (homeX analysis, not data)

The surge in construction credit is a project-financing signal, but CNBC stresses that the BI report does not name the recipient projects, and H1 cement results differ by issuer (SMGR +18.1% to SMBR down). Home buyers and small contractors should therefore not infer price rises from the credit figures; keep comparing shop prices on the same date and read our articles on imports, investment and building-material inflation.

Buyer tips

Use credit data as macro context, not as a reason to buy early or delay.
Compare cement, rebar and ceramic prices from two shops on the same date; keep screenshots.
Watch the next BI money supply release for revisions and September data.
If applying for a mortgage, ask the bank about interest rate, LTV and fees, not only macro numbers.

Request a construction credit August 2026 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. Visit the homeX Showroom.

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

How much was construction credit in August 2026? Rp585.3 trillion, up 49.5% y-on-y from Rp391.4 trillion in August 2025 (Kontan and CNBC Indonesia, September 2026).

When does the bank reserve requirement fall? The reserve requirement of conventional commercial banks falls 1% on 1 November 2026 and another 1% on 1 December 2026, from 9% to 7% (BI press release, 21 Oct 2026).

Does rising construction credit mean building material prices will rise? Not automatically. Credit is a financing balance, the BI report does not name recipient projects and contains no prices; any link to building-material prices is homeX analysis, not data.