REPUBLIKA.CO.ID, JAKARTA -- Property Consultant Colliers International said currently more property buyers prefer to use bank credit than in earlier years.

"In 2013, only 16 percent of property buyers used Bank Housing Credits (KPR) to buy apartment units to be repaid by installments. Now the percentage doubled," Senior Associate Director Research Colliers International Indonesia, Ferry Salanto, said here on Tuesday.

Ferry said the data was based on a survey by Colliers in Jakarta.

Based on the survey in the fourth quarter of 2013, around 16 percent of buyers of apartment suits used KPR from banks, 21 percent in hard cash and 63 percent bough houses from developers with cash installments.

It was different from the second quarter of 2017, when apartment suit buyers use KPR from banks made up 32 percent of the total number of buyers, with those using hard cash making up 18 percent and cash installments from developers making up 50 percent, Ferry said.

He attributed the phenomenon to relaxation in Bank Indonesia's advanced payment policy of "loan-to-value threshold" (LTV), and lower lending interest offered by banks.

He said in order to help boost development of the property sector, banks should cut their lending rate.

"It is necessary to keep the favorable condition that more buyers would use bank credits," he said.

Separately, the Public Works and Housing Ministry through the Directorate General of Housing Financing in 2017 revised the target for subsidized KPR to 279,000 units consisting of subsidy on KPR credit difference for 239,000 units and subsidized credit (FLPP) for 40,000 (units).

Director General of Housing Financing Lana Winayanti said the revision was necessary given the supplying capacity for subsidized houses built by developers.

"Although the budget for subsidized KPR was slashed from Rp9.7 trillion to Rp3.1 trillion, the cut was compensated for with an increase in subsidy on interest difference from Rp312 billion to Rp615 billion and the change in the composition of budget could still guarantee the need for subsidy on houses for low income people built by developers . The change in the composition of budget would be arranged in the revised 2017 state budget," he said.

Although the state-owned saving bank (BTN) has no more role in distribution of KPR for BTN clients (FLPP) in 2017, There are still 29 banks offering KPR FLPP, including 7 general banks and 22 Regional Develoopment Bank (BPD).

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