HOUSING FINANCE IN URBAN INDONESIA
The majority of the new houses in urban Indonesia are built by contractors or financed by the homeowners by their personal savings. Only 200,000to 240,000 units are financed through Mortgage Finance per year out of a total requirement of 800,000 units/year: roughly 40-50 % of which receive a mortgage-linked subsidy. That means nearly one-fourth of the housing market is served by the formal mortgage finance industry. Many homeowners use short-term loans from micro-lending institutions to fund housing construction, where no reliable data is available.
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