The Public Works and Public Housing (PUPR) Ministry expects that the property sector can support the Indonesian economy amid the global recession in 2023, as the sector is estimated to survive during that period.

“The property sector is expected to support Indonesia’s economy once again to continue to grow next year,” Ministry’s Public Works and Housing Infrastructure Financing Director General, Herry Trisaputra Zuna, remarked.

Despite this, the property sector encounters a certain challenge, he stated during the event titled “Housing Economic Outlook and Prospect in 2023” streamed online, Monday.

This challenge involves the rise of benchmark interest rate that will potentially increase the homeownership credit (KPR) interest rate and lower the people’s purchasing power over housing.

To this end, housing financing stimulus aid, intervention, and program by the government became crucial for the growth of the property sector and the economy in Indonesia.

“If we often hear about the economy with declining trend, the property sector remains positive. Then, there are 174 sectors that are derivatives from housing,” he highlighted.

In terms of justification, there is no doubt when it comes to the housing sector since in the event of a crisis, the housing sector should be a tool to encourage economic growth.

This is also an implementation of the mandate of the 1945 Constitution to help the people, who do not yet own a home in receiving proper personal housing.

The provision of housing currently encounters a major roadblock to resolve the backlog of 12.71 million housing.

“The government, in this case the PUPR Ministry, aims to realize the gradual improvement of people’s access through the provision of safe, affordable, and decent housing,” Zuna remarked.

During the event, he also stated that housing financing development in 2023 will target three groups: informal low-income population, urban population and millennials.

Source: Antara News