West Java Property Moratorium: Challenges and Implications

Background of the Moratorium

The West Java provincial government has implemented a moratorium on issuing new housing permits across all regencies and cities. This policy requires local governments to complete disaster risk assessments and adjust their spatial planning documents before new permits can be issued ³

. The decision affects numerous ongoing projects and has sparked concerns within the property development sector.

Impact on Property Projects

The moratorium has put projects worth over Rp3.5 trillion at risk, according to the Indonesian Association of Housing and Settlement Developers (Himperra) ²

. While some developers like PT Perdana Gapuraprima Tbk (GPRA) have stated that their current projects remain unaffected as they had obtained necessary permits before the moratorium ¹

Source 1

https://industri.kontan.co.id/news/moratorium-izin-properti-di-jabar-tak-ganggu-proyek-perdana-gapuraprima-gpra

, the overall industry faces significant challenges.

Sector Implications

The property sector is already experiencing slowdown due to decreasing purchasing power. The additional regulatory hurdle comes at a time when mortgage growth has slowed to 6.9% year-on-year as of November 2025, below the overall loan growth rate of 7.9% ³

. Industry experts warn that this policy could further dampen the sector's growth.

Developer Perspectives

Different developers are affected in varying ways. For instance, GPRA has confirmed that their projects in West Java continue as planned since they had secured permits prior to the moratorium ¹

. However, Himperra estimates that the moratorium could significantly impact investment in the region.

Regulatory Context

The moratorium is part of a broader effort to improve spatial planning and disaster risk management in West Java. Governor Dedi Mulyadi's administration aims to ensure that new housing developments are compliant with updated spatial plans and have undergone thorough risk assessments ³

.