New Home Loan Applications Decline in Q3 2021

Bank Indonesia (BI)'s Banking Survey shows that the growth in new demand for mortgage loans (KPR) slowed in the third quarter of 2021. This is reflected in the decline in the weighted net balance (WNB) growth for new KPR demand compared to the second quarter of 2021.

The survey recorded a WNB growth of 45.6% for new KPR demand. This growth is lower than the 58.1% growth in new KPR in the second quarter of 2021 and also lower than the 64.7% growth in the third quarter of 2020.

Overall, the growth in new credit disbursement slowed in the third quarter of 2021. The WNB growth for new credit demand in this period was only 20.9%, lower than the 53.9% growth in the second quarter of 2021. New credit growth occurred across all credit types. Working capital credit grew by 18.1%, investment credit by 34.4%, and consumer credit by 49.8%.

BI's Banking Survey aims to gather early information on banking policies regarding credit disbursement, funding, interest rate determination, and the development of new credit supply and demand. The sample is purposively selected from approximately 40 commercial banks with a credit share of about 80% of total credit.

Data processing uses the WNB, which is calculated by multiplying respondents' answers by their credit weight (totaling 100%), then calculating the difference between the percentage of respondents who answered "increased" and "decreased".