Jakarta, CNBC Indonesia – General Chair of Indonesian Real Estate (REI) Joko Suranto hopes that the government will not ignore the domestic housing/property industry. Because, he said, home ownership is an indicator of prosperity.
“Don't add to the oil and gas subsidy, which currently amounts to IDR 74.1 trillion, when in fact the subsidy related to oil and gas reaches more than IDR 200 trillion. If it's only IDR 71.4 trillion, that means it's equivalent to “Rp. 2.2 million per day was burned down because of traffic, the distance from home, because there was no transportation infrastructure,” said Joko in a special interview with CNBC Indonesia, Wednesday (7/2/2024).
“If a ministry is able to harmonize the orchestration of the housing sector so that it is more planned with infrastructure, transportation, and can be integrated with social and educational aspects, then the social burden of oil and gas subsidies can decrease,” said Joko.
“Because property is great. If you subsidize oil and gas, the money won't come back. But if the subsidy is pushed into housing, then it will become goods, namely houses, then the value of the house will rise, then the impact on output will also rise, then the money will come back,” ” he said.
Moreover, continued Joko, there are 185 industrial subsectors and more than 7 million workers related to the property sector in the country.
“If there is this understanding, then alignment will emerge,” he said.
Joko said, with the housing backlog figure currently still around 12.7 million, the potential for growth in the housing or property industry in Indonesia will still be high until it reaches a Golden Indonesia (2045).
Because of this, he also invited the banking sector to produce products that could provide easy access to home ownership financing, especially for low-income people.
[Gambas:Video CNBC]
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