TEMPO.CO, Jakarta - Bank Indonesia (BI) predicts a potential rise in housing demand in Balikpapan, East Kalimantan, for 2026, as the city remains a primary hub for the ongoing development of the New Capital City of Nusantara (IKN).
"The second phase of IKN development and increasing industrial activities that boost worker mobility are expected to provide an additional push for the housing market," said Robi Ariadi, Head of the BI Balikpapan Representative Office, when asked about the positive impact of IKN on Saturday, April 4, 2026, as quoted from Antara.
"The distribution of subsidized home ownership loans (KPR) still dominates, and housing financing remains a vital support for the Balikpapan property market," he added.
Although the residential market is moving at a slower pace than in previous years, interest in landed houses has not faded, he continued, noting that large-sized homes recorded stronger sales at the end of 2025.
This indicates an active buyer segment, particularly among individuals requiring more space or possessing stronger financing capabilities.
The distribution of home ownership loans in Balikpapan reached Rp4.97 trillion by the end of 2025, Robi added, with KPR serving as the primary method for the community to acquire homes, accounting for a 78 percent share of total transactions.
KPR remains the top choice as it allows for long-term installments, and the growth of home ownership loan distribution recorded a 4.16 percent annual increase, according to Robi, though this was lower than in the previous period. Housing financing remains stable, with the non-performing loan ratio staying below five percent, indicating the community's consistent ability to meet loan obligations despite shifts in economic activity.
Robi stated that the volume of loan distribution signals that for most families, KPR is the necessary solution because home prices in Balikpapan exceed cash payment capabilities.
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