Data from Indonesia's Central Bureau of Statistics (BPS) shows that the percentage of Indonesian households owning their own homes reached 84.79% in 2023. This is the highest record in the last decade.
The ownership percentage in 2023 surpassed that of 2022, which was 83.99%. Indeed, the proportion of homeownership in the last two years has risen aggressively since the Covid-19 pandemic.
In early 2020, at the start of the pandemic, it was recorded at 80.10%. In 2021, the second year of the pandemic, it was 81.08%.
The increase in homeownership in Indonesia is due to a number of government stimulus packages implemented since the pandemic. One example is the value-added tax (VAT) discount for home purchases.
Looking back to 2013, the proportion of homeownership in Indonesia was 80.08%. Cumulatively, this represents a 4.71 percentage point increase over the last decade.
(Read also: How Many Indonesian Households Own and Rent Their Homes?)
BPS defines a self-owned home as a residential building owned by the head of the household or one of its members, and homes purchased through bank installments or rent-to-own schemes are also considered self-owned.
By province, West Sulawesi had the highest national rate of homeownership in 2023, at 93.35% of its total households. This was followed by Lampung at 92.4% and West Kalimantan at 91.43%.
Meanwhile, Jakarta had the lowest national homeownership rate in 2023, at only 56.57% of its total households. This was followed by North Sumatra at 71.46% and West Sumatra at 72.61%.
Based on regional characteristics, self-owned homes are most commonly found in rural areas, with a proportion of 92.38% of total rural households in 2023. Self-owned homes in urban areas are fewer, at 79.36%.
Conversely, households renting homes are most commonly found in urban areas, at 8.03% of total urban households in 2023. Rural households renting homes constituted only 0.89% in 2023.
(Read also: West Sulawesi Holds Highest Homeownership Rate in 2023, Jakarta Lowest)