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View all search resultsWest Java development moratorium prompts industry scrutiny
A real estate association has warned of financial strain on developers and a potential setback for the government’s 3-million-homes program.
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Flood fury: Riverbank areas affected by flash floods are seen on Dec. 21, 2025, in Padang Pariaman, West Sumatra. (Antara/Iggoy el Fitra)
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temporary moratorium on new property development permits in West Java has raised concerns in the real estate sector, with industry leaders warning of severe financial repercussions for and a likely derailment of the national housing program.
Bambang Ekajaya, deputy chairman of the Indonesian Real Estate Association (REI), acknowledged the environmental rationale behind the policy but emphasized its immediate disruptive impact.
He said the moratorium, while well-intentioned, risked crippling developers involved in large, preapproved investments and could significantly hamper the government's target of building or renovating 3 million homes annually.
“The majority, perhaps almost 100 percent, of development uses bank financing. With bank funding, if there are delays, interest will continue to accrue,” Bambang said. “It could be detrimental if we let the developer collapse for too long, if they have to pay, but there's no income, or even uncertainty about the future of the project.”
The core issue in West Java was unorganized development in critical watershed and conservation areas, such as the Puncak tourist area in Bogor, West Java, often led by communities rather than formal developers, leading to environmental degradation and disasters, Bambang said.
“In this case, the contours of the area are cut and filled inappropriately, resulting in frequent disasters,” he said, arguing in favor of a focused approach: “We support the need for evaluation. We must focus on areas that are already in progress.”
Read also: Analysis: ‘3 million homes’ program in limbo after losing PSN status
