Bank Negara Indonesia (BNI), the fourth-largest bank in Indonesia, in fact only saw a 0.8 percent (y/y) growth rate to IDR 35.85 trillion for KPR credit disbursement per June 2017. Meanwhile, with a non-performing loan (NPL) ratio of 3.8 percent (per June 2017) KPR credit is the biggest contributor to BNI's overall NPL ratio in the consumer credit segment.

Anggoro Eko Cahyo, Head of Consumer Business at BNI, remains optimistic that the bank's KPR credit disbursement will touch double-digit growth by the year-end. He added that bleak credit disbursement in the first half of the year is partly attributed to the Ramadan and Idul Fitri period when people are not focused on big purchases or investment. One strategy for BNI to boost its KPR and KPA credit disbursement is to team up with strategic property developers.

A better performance is delivered by Bank CIMB Niaga. It saw its KPR credit disbursement rise by 10 percent (y/y) in the first half of 2017. Without mentioning the specific details, Lani Darmawan, Director of Consumer Affairs at Bank CIMB Niaga, said the bank has made several improvements since last year, both for consumers and developers that managed to attract more demand. Moreover, the bank offers competitive interest rates on KPR loans.

Bank Central Asia (BCA) saw its KPR credit disbursement grow by 10.4 percent (y/y) in the second half of 2017 and is optimistic that the figure will rise in the remainder of 2017.

Lastly, Bank Rakyat Indonesia (BRI) recorded a 12.2 percent (y/y) growth rate in the first half of 2017 in terms of KPR credit disbursement. Randi Anto, Director of Consumer Affairs at BRI, said the bank targets to boost the figure to 20 percent by the year-end.

Read more: Overview & Analysis of Indonesia's Property Sector

House Ownership Credit (KPR) & Apartment Ownership (KPA) Credit:

2014 2015 2016  May
KPR & KPA Credit
(in trillion rupiah)
281.5 317.4 340.8 368.3 350.3 377.3
Total Property Credit
(in trillion rupiah)
472.9 554.6 620.4 713.4 642.0 730.2

Source: Kontan