In Jakarta
Richard Aitken
Phone: +62 815 1433 9017
E-mail: RAitken@ifc.org

In Hong Kong
Andrew Mak
Phone: +852 2509 8110
E-mail: AMak@ifc.org


Jakarta, Indonesia, July 21, 2008—IFC, a member of the World Bank Group, today announced the results of a survey on the financing plans of Indonesians who want to buy a home. The Indonesia Housing Finance Survey 2008 reviews potential purchasers’ preferences of loan products and their knowledge of mortgage lending.

The IFC-sponsored survey of households in Indonesia’s seven largest cities was conducted by an international housing specialist from the University of Chicago, in partnership with Yayasan Inovasi Pemerintah Daerah, a local foundation. It finds that 49 percent of the people surveyed plan to obtain housing loans in the next three years, with slightly more than half of them planning to borrow from commercial banks and cooperatives. This could result in 55,800 potential new mortgage clients with loans worth about 6.6 trillion Indonesian rupiah.  

The results indicate a strong preference for fixed-rate loans and for lower down payment options than those permitted by commercial banks and cooperatives. They also show a widespread lack of knowledge about mortgage lending. Another key finding is a need for campaigns to raise consumer awareness and boost mortgage demand.

Raymond Struyk of the University of Chicago said, “This is the first time that an analysis of borrower preferences for mortgage features has been done outside of industrialized countries. The survey results provide a very strong foundation for redesigning mortgage products and expanding lending in Indonesia.”

Adam Sack, IFC Country Manager for Indonesia, said, “IFC will help develop Indonesia’s housing sector by supporting financial institutions in creating flexible and affordable housing loans and strengthening related regulations and infrastructure. This will stimulate a significant housing supply response, particularly for middle- and lower-income households.”

The survey results were presented at the Indonesia Housing Finance Roundtable, a discussion forum for commercial bankers, government agencies, and other housing finance practitioners and stakeholders.  

About IFC
IFC, a member of the World Bank Group, fosters sustainable economic growth in developing countries by financing private sector investment, mobilizing private capital in local and international financial markets, and providing advisory and risk mitigation services to businesses and governments. IFC’s vision is that people should have the opportunity to escape poverty and improve their lives. In FY07, IFC committed $8.2 billion and mobilized an additional $3.9 billion through syndications and structured finance for 299 investments in 69 developing countries. IFC also provided advisory services in 97 countries. For more information, visit www.ifc.org.