15.5 million people live in uninhabitable houses, what are the government’s efforts?

JAKARTA, KOMPAS.com – Sustainability of the business sector property become one of the main focuses of the Government in line with the national economic recovery mission as well as the many needs House livable.

The reason is that currently the urban population in Indonesia has reached 56.7 percent and is expected to increase to 66.6 percent in 2035 and reach 72.8 percent in 2045.

“There are still 15.5 million people living in uninhabitable house in 2020. To that end, the property sector will continue to be encouraged to actively contribute in providing residence appropriate for the community,” said Coordinating Minister for the Economy Airlangga Hartarto, quoted in a press release, Saturday (25/02/2022).

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Moreover, the property sector has multiplier effect high, both from the side forward linkageas well as backward linkage to 174 industrial sub-sectors.

Then contributed to the absorption of direct labor in the property industry and even reached 19 million people. A number of positive impacts are either direct or indirect.

To maintain the growth momentum in the property sector in 2022, the Government will implement a number of strategic policies, such as fiscal incentives to stimulate the property sector.

As part of the national economic recovery program, the Government-borne VAT (DTP) incentive Housing area will be given for submission in the January to September 2022 Tax Period.

In addition, legal certainty and Government support will continue to be implemented in the form of simplification of regulations and licensing, including ease of investment in the property sector, as regulated in the Job Creation Act.

Coordinating Minister Airlangga also appreciated the relaxation measures that had been given during the pandemic, including credit guarantee policies and restructuring.

So that credit distribution can grow positively at the beginning of Quarter IV-2021 with a controlled NPL ratio in the range of 3 percent.

The financial sector is also expected to continue to optimize its function as an intermediary, especially in supporting the property sector as well as being a companion for economic recovery in the real sector.

Among other things, through several activities including increasing financial literacy and market deepening, as well as access to finance for all Indonesian people.

“The government remains committed to supporting the sector housing area and the financial sector to synergize and be optimistic so that the national economic recovery can run well,” concluded Airlangga.

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