Jakarta, CNBC Indonesia – Chief Economist at PT Bank Syariah Indonesia Tbk Banjaran Surya Indrastomo revealed that the domestic property sector is still facing a number of obstacles that are hampering its continued growth. On the other hand, he added, real estate financing is still maintained. Even though it fell in 2020-2021 to IDR 45.83 trillion, it rose again to IDR 47.67 trillion in 2022.
During the Covid-19 pandemic, he said, incentives provided support for the national property industry to continue to grow. Although, he admitted, the property industry's contribution to Indonesia's GDP is still limited.
“In this context, it can be seen that in 2022 there will be a rebound. In 2023, until the second quarter we see that it is still in an upward trend. In the third quarter there was a correction, perhaps the effect of interest rates and other costs, so there was a slight decline,” he said in an interview specifically with CNBC Indonesia, Wednesday (7/2/2024).
“Then we saw that the government at the end of last year encouraged home ownership credit to be maintained. To ensure that this sector, which was previously mentioned, has employed many people and contributed positively to the economy, and concerns 185 industrial subsectors, we must think that this sector actually has potential to be even faster,” added Banjaran.
However, he continued, there are a series of obstacles facing the domestic property industry.
“In the Bank Indonesia survey, the biggest obstacles are licensing and interest rates, like it or not, this is experienced by all business sectors. Then there is the high DP (down payment) and taxation,” he said.
“If 2 or 3 of these 4 can be addressed, it will be able to help increase house purchases. Apart from that, a note that needs to be highlighted is that the property or real estate sector is the main driver of domestic investment,” said Banjaran.
He said that investment in the property sector in many countries, including ASEAN, had become the main key to boosting the economy and financial markets.
“In Indonesia, this proportion has not yet been seen. In Malaysia it is already double digits, let alone Singapore. We are still below 2 digits,” he said.
“Echoing (repeating) Mr. Joko's statement, the property industry must be seen as an area for further investment. But there is no strategic solution that focuses on housing downstreaming, which encourages more production,” said Banjaran.
[Gambas:Video CNBC]
Next Article
Property Becomes a Strategic Project, Developer Boss Reveals the Evidence
(dce/dce)