MilikiRumah, a proptech firm active in Singapore and Indonesia, has announced a private equity fundraise of US$50 million for its MilikiRumah Rent-To-Own Fund 1.

The fund is backed by investors including Ruifeng Wealth Management, Tembusu Partners, and Trigger Asset Management.

The fund aims to develop residential properties for end-user occupancy in Greater Jakarta.

It targets a 20% internal rate of return for investors, which include family offices and private equity firms from Singapore and other economic hubs.

MilikiRumah operates under Rightkey Capital Pte Ltd, a Singapore-registered entity.

The funds will be used to develop affordable landed houses in partnership with local real estate developers.

🔗 Source: MilikiRumah

🧠 Food for thought

1️⃣ Bridging Indonesia’s housing gap through innovative financing represents a massive untapped market

Indonesia’s mortgage-to-GDP ratio stands at only around 3%, revealing an immense runway for growth compared to more developed markets where this ratio typically reaches 20-30% 1.

This gap exists despite government initiatives like the “One Million Houses” program which constructed 3.2 million housing units over four years but still struggles to meet the nation’s housing deficit 1.

The focus on underbanked non-fixed income earners is particularly strategic as traditional banks in Indonesia typically reject mortgage applicants with debt-to-income ratios above 50%, leaving millions without access to home financing 1.

By creating a pathway to homeownership for these underserved segments, MilikiRumah is addressing both a social need and a significant business opportunity in a country where less than 50% of Jakarta’s adult population owns a home.

The $50 million fund targets Greater Jakarta’s historically appreciating real estate market while building financial inclusion, combining social impact with the potential for attractive returns.

2️⃣ Singapore’s public housing success offers a proven template for private sector adaptation

Singapore’s Housing & Development Board (HDB) model has achieved remarkable results with 90% homeownership nationwide and approximately 75% of residences being public housing 2.