Villagers Purchased More Homes in Cash in 2022; What About City Dwellers?

The Central Bureau of Statistics (BPS) states that 9 out of 100 Indonesian households occupy homes they own, purchased either from a developer or otherwise. This proportion reached 8.79% in 2022.

Methods of purchasing homes from developers and non-developers vary. These include installments through a Home Ownership Loan (KPR), non-KPR installments, cash, or other methods.

BPS explains that in 2022, more people purchased their homes in cash (52.85%).

"Cash purchases have the highest percentage compared to KPR installments, non-KPR installments, or other methods," wrote BPS in their 2022 Housing and Settlement Statistics report.

Another option, purchasing a home through credit and installments, known as KPR, was chosen by 36.08%. BPS explains that KPR is a home credit facility provided by banks to individual customers who will buy or renovate a house.

Meanwhile, installments using methods other than KPR were chosen by 10.39% of households.

Broken down by region, cash home purchases were more common in rural areas than in urban areas: 85.49% versus 47.63%.

Conversely, KPR installment purchases were more common in urban areas than in rural areas: 41.30% versus 3.44%.

BPS assesses that the significantly higher house prices in urban areas compared to rural areas make installment purchases more common in cities. This is also due to the fact that more housing is built in urban areas than in rural areas, according to BPS.

BPS adds that the way people buy homes is largely determined by their household's economic status.

"Access to KPR is usually limited to households with a fixed income," says BPS.

(See also: [Home Ownership in Indonesia Sharply Increased After the Pandemic](https://databoks.katadata.co.id/datapublish/2023/08/25/kepemilikan-rumah-sendiri-di-indonesia-meningkat-tajam-setelah-pandemi))