Jakarta, CNBC Indonesia – The number of housing needs (backlog) in Indonesia is still quite high. The 2020 Indonesian Socio-Economic Survey (Susenas) figures are estimated to reach 12.75 million units.
It is not an easy matter to reduce the backlog figure which has reached 12.7 million units. There must be collaboration between the government, property developers and banks.
“The reduction in the backlog is still very small compared to President Jokowi's target of 1 million houses a year. If we look at this condition from the budget. So we are proposing that propertynomics be a priority,” said General Chair of Indonesian Real Estate (REI) Joko Suranto in a special interview with CNBC Indonesia , Wednesday (7/2/2024).
According to Joko, regarding the backlog number which is still very high, there are a number of strategies that can be implemented. The first is the banking strategy in creating the right program so that Indonesian people can own a home. He said banks must see this backlog as a large market.
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Photo: CNBC Indonesia/Muhammad Sabki
Condition of cheap housing in Citayem, Depok, West Java, Thursday (15/03/2018). There are a lot of cheap houses growing in the outskirts of Jakarta which are alternative locations for building cheap houses but unfortunately their condition is not maintained and have even become abandoned buildings because many developers have not continued because there is still a lack of interest from buyers and road access is still difficult. (CNBC Indonesia/Muhammad Sabki) |
“A high backlog means the market is there. Banks should think about creating products that can provide bridges and make the process easier so that it becomes a roadmap for reducing backlogs,” he said.
He admitted that currently a number of ways have been implemented by banks so that Indonesian people can easily own a house. For example, providing a low down payment (DP), adjusting the value of home ownership credit (KPR) to the consumer's income, and a mortgage installment program of up to 35 years.
However, the problem now is that the backlog figures do not only come from low-income communities (MBR), but also the middle class. Joko said community groups with incomes above IDR 8 million per month should also receive government attention.
“The current subsidy is only for FLPP (Housing Financing Liquidity Facility) but above that IDR 8.1 million or IDR 12 million they also have to get access,” he said.
Meanwhile, Chief Economist of Bank Syariah Indonesia (BSI) Banjaran Surya Indrastomo added that from the banking side, they already have various programs to help reduce housing shortages. BSI itself is said to have a musyarakah program which makes it easier for people to own a house.
“You have to look for a common pattern that is a win-win solution. We from sharia banking have schemes such as musyarakah ownership accompanied by rent, slowly increasing ownership,” he added.
[Gambas:Video CNBC]
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