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| Bank Indonesia predicts housing demand in Balikpapan will rise in 2026 as IKN development continues and mortgage financing remains dominant. |
Balikpapan, East Kalimantan — Bank Indonesia (BI) projects that housing demand in Balikpapan will increase in 2026, driven by the continued development of Ibu Kota Nusantara (IKN) and the gradual recovery of industrial activity in the region.
Head of BI’s Balikpapan Representative Office, Robi Ariadi, said the second phase of IKN construction is expected to boost worker mobility, which in turn will create additional demand for housing.
“The continuation of IKN development and the increasing industrial activity are expected to drive higher worker mobility, providing additional momentum for the housing market,” he said on Saturday.
Mortgage Financing Remains Key Driver
BI noted that mortgage loans (KPR) continue to play a dominant role in supporting Balikpapan’s property sector. By the end of 2025, total mortgage disbursement reached approximately Rp4.97 trillion, accounting for 78 percent of all housing transactions.
According to Robi, mortgages remain the preferred option for most homebuyers as they allow long-term installment payments, especially given that property prices in Balikpapan are generally beyond the reach of cash buyers.
Mortgage lending grew by 4.16 percent year-on-year. Although this growth is slower compared to previous periods, it indicates that housing financing remains relatively stable.
Larger Homes Gain Traction
Despite a slower pace in the residential market overall, demand for landed houses remains steady. Notably, larger house types recorded stronger sales toward the end of 2025.
This trend reflects continued activity among certain buyer segments, particularly those seeking more spacious homes or possessing stronger financial capacity.
Credit Risk Remains Manageable
From a risk perspective, BI reported that non-performing loans (NPL) in the housing sector remain below 5 percent. This suggests that borrowers’ repayment capacity remains stable despite ongoing economic adjustments.
The relatively low NPL level is seen as a positive signal for both the banking sector and the overall resilience of Balikpapan’s property market.
IKN’s Spillover Effect On Balikpapan
As one of the main supporting cities for IKN, Balikpapan is expected to see sustained growth in housing demand in the coming years. Increased worker mobility, industrial expansion, and the need for residential space are key contributing factors.
With these developments, the property sector is projected to remain one of the key pillars supporting regional economic growth.
FAQ
1. Why is housing demand in Balikpapan expected to rise?
Due to ongoing IKN development and increased industrial activity that drives worker mobility.
2. How much mortgage financing has been disbursed?
Approximately Rp4.97 trillion as of the end of 2025.
3. Is the property market in Balikpapan growing?
Yes, it remains stable with growth in certain segments like larger homes.
4. Are mortgages still the main financing option?
Yes, accounting for 78 percent of total housing transactions.
5. What is the current level of credit risk?
Non-performing loans remain below 5 percent, indicating stable repayment capacity.