JAKARTA, JAKTIMES.COM – President Joko Widodo appreciates the resilience of Indonesia’s property, real estate, and construction sectors amid the global economic slowdown. Furthermore, these sectors are also deemed by President Jokowi to be increasingly competitive and make a significant contribution to the national economy.
“I am pleased that amidst the global economic slowdown, Indonesia’s property, real estate, and construction sectors are robust, resilient, and increasingly competitive. When we observe their contribution, from 2018 to 2022, it reached Rp2,300-2,800 trillion annually, which is substantial and accounts for 16 percent of our economic GDP – a significant contribution,” stated President Jokowi during his speech at the opening of the 17th National Assembly (Munas) of the Indonesian Real Estate Companies Association (REI) in 2023, held at the Grand Ballroom of the Sheraton Gandaria City Hotel in Jakarta on Wednesday, August 9, 2023.
Aside from the economic contribution, the President continued, the property, real estate, and construction sectors also involve a substantial workforce in their economic circulation, employing around 13-19 million individuals. According to the President, this contribution to the Gross Domestic Product (GDP) and the workforce has led many countries to aspire to boost their economies through the property sector.
“Why do many countries aim to drive their economies through real estate efforts? Because the contribution to their GDP is very high in all countries,” he added.
Furthermore, the property, real estate, and construction sectors can also have a multiplier effect on 185 other subsectors. These subsectors span from building materials such as cement, iron, and bricks, to furniture, electronics, and household appliances.
“Let’s not forget the service industry, from electricians, waste collectors, gardeners, to septic tank cleaners – they all can thrive,” he continued.
The Head of State explained that the property sector cannot sustain itself in all countries, due to either the Covid-19 pandemic or economic issues. The President provided an example of a major property company in another country that collapsed due to significant debts. Therefore, he urged property companies in the country to pay attention to backlog and the needs of the people in their efforts.
“Fortunately, this is not the case in Indonesia because our needs are still substantial. The housing ownership backlog is still 12.1 million, which is an opportunity, a chance that can be pursued by all REI members,” he said.
Furthermore, the President also assessed that the opportunity in Indonesia’s property sector remains vast as the growth of new families reaches 700,000 to 800,000 per year. Additionally, the national economic performance remains favorable, with steady growth above 5 percent.
“Just announced this past Monday, our economic growth is 5.17 percent, and we have been growing above 5 percent for 7 consecutive quarters. Among the G20 countries, only Indonesia, India, and China have achieved growth above 5 percent,” he elaborated (Wan)
