Executive Summary

Key insights and market outlook

The West Java Governor has expanded the housing permit moratorium to all regencies and cities, citing increased hydrometeorological disaster risks ¹

. This policy, effective immediately, requires local governments to conduct disaster risk assessments and adjust their spatial planning before new permits can be issued ¹². Industry experts warn that while the move has environmental urgency, it may negatively impact investment climate and property business prospects in West Java, a key national housing development region ³.

Full Analysis

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Deep Dive Analysis

West Java Expands Housing Permit Moratorium, Affects Property Sector

Policy Expansion and Rationale

The Governor of West Java, Dedi Mulyadi, has issued a significant policy expansion by extending the housing permit moratorium to all regencies and cities across West Java through Circular No. 180/HUB.03.08.02/DISPERKIM dated December 13, 2025 ¹

². Originally limited to the Bandung Raya area, this broader moratorium aims to mitigate increasing hydrometeorological disaster risks that are no longer considered local in nature ¹.

Implementation Requirements

The moratorium remains in effect until local governments complete disaster risk assessments and adjust their spatial planning regulations to address these environmental concerns ¹

². This precautionary measure is designed to prevent development in high-risk areas, particularly those prone to floods and landslides ².

Industry Impact and Concerns

The property industry is concerned about the potential negative impact on the investment climate and business prospects in West Java, which is a significant hub for major national developers ³

. Associate Director of PT Leads Property Services Indonesia, Martin Hutapea, noted that while the moratorium has environmental justification, it needs clear regulatory guidelines to prevent adverse effects on investment ².

Economic Implications

Property expert Aleviery Akbar emphasized that this policy could have a substantial impact on the local economy as many large developers have significant land banks in West Java ³

. The restriction on new housing permits could affect not only developer activities but also regional revenue and the overall recovery of the property sector ³.

References