Mortgages Now Fund 67.6% of Home Purchases in Bali, Bank Indonesia Says
Bank Indonesia's Bali office says mortgages finance 67.6% of home purchases on the island, with the local price index up 1.02% in the second quarter.
Mortgage credit finances 67.6% of home purchases in Bali, according to Achris Sarwani, head of Bank Indonesia's Bali representative office, in a briefing reported on 23 August 2026. The province's residential property price index rose 1.02% in the second quarter of 2026, up from 0.87% in the first. The price movement is modest; the financing structure behind it is not.
Two-thirds of the market runs on credit
A 67.6% mortgage share means the Balinese purchase market is now primarily a credit market, and its price level is therefore set as much by lending conditions as by the underlying demand for houses. When roughly two out of every three buyers need a loan to complete, changes in Indonesian policy rates, loan-to-value ceilings and bank risk appetite transmit into Bali transaction volumes faster than they transmit into headline prices.
The supply side carries the same signature. Developers self-fund 56.6% of residential development in the province, according to the same briefing, meaning more than half of construction is financed from developer balance sheets rather than project lending. Together those two figures describe a market where the developer absorbs the build risk and the household absorbs the purchase risk, with the banking system positioned mostly at the point of sale.
What the local market is actually building
Bank Indonesia's Bali classifications put medium homes at 36 to 70 square metres and large homes above 70 square metres. Those are the segment boundaries the survey uses, and they are a useful reminder of scale: the domestic Balinese product being financed by these mortgages is not the villa stock that dominates international coverage of the island.
How this compares with Glopra's Bali data
Glopra's Market Data v3 snapshot for 24 August 2026 puts Bali at USD 2,341 per square metre on a gross rental yield of 5.80%, with a Bubble Risk score of 21 in the moderate band. Our standardised non-resident effective rental tax rate for the market is 20%. The Bali row carries a Low confidence flag, which reflects how little Bali-specific published data exists relative to the island's profile among international buyers.
That flag is exactly why a Bank Indonesia regional briefing matters more here than the equivalent would in a well-documented market. It is one of the few provincial-level reads available, and the 1.02% quarterly index figure is a Bali number rather than a national figure applied to Bali.
The limits of a single briefing
This is one regional central-bank briefing reported by one outlet, not a published statistical release with an accessible methodology note. The briefing describes the domestic purchase market and did not break out foreign buyers separately, so none of these financing shares should be read as applying to non-resident purchasers, whose ownership routes and credit access differ. The 1.02% and 0.87% index readings are reported as given, without the survey's sample definition.
Sources: ANTARA News Bali (Bank Indonesia Bali representative office briefing), 23 Aug 2026 https://bali.antaranews.com/berita/412071/bi-sebut-skema-kpr-bantu-kelas-menengah-di-bali-lebih-mudah-punya-rumah