BTN is wary of Evergrande’s effect on the Indonesian property sector

Reporter: Maizal Walfajri | Editor: Herlina Kartika Dewi

KONTAN.CO.ID – JAKARTA. The debt crisis of the giant developer Evergrande China could have an impact on Indonesia. Setiyo Wibowo, Director of Risk Management and Transformation BTN said BTN continues to observe this case.

Moreover, China’s property market is quite large. Evergrande alone as the number two developer in the country has a debt of around Rp 5,000 trillion or only 5% of China’s property market. This value is not much different from the total bank lending of Rp 5.563 trillion as of July 2021.

“In the short term (short time) it can have an impact on the Indonesian market, although it is relatively limited. But in the long term, we have to be careful. If China reaches the mortgage crisis, it might also have an impact on the Indonesian market,” said Setiyo, Friday (8/10).

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It reflects on previous experience. In 2012 to 2013, Indonesia experienced a crisis in the steel sector. This is also spurred by the steel crisis from China.

At that time, the Chinese government closed various steel companies. As a result, steel business players from China are looking for new markets and entering Indonesia in droves. So that the Indonesian steel industry was also disturbed and the crisis.

“In Indonesia, property-related matters are possible, but we are still observing, but the mortgage industry is related to land certification. Hopefully, the government can provide protection to the domestic housing sector,” he concluded.