FLPP Trimming Policy Can Be Overcome DIY Developers

By : Aldi Firhand Alqudri | Monday, July 31 2017 - 15:29 IWST

Residence Illustration

INDUSTRY.co.id - Yogyakarta - Chairman of the Board of Real Estate Region of Indonesia Special Region of Yogyakarta Nut Andi Wijayanto believes budget reduction policy Housing Financing Liquidity Facility will not affect the disbursement of mortgage loans in this area.

"The current Housing Financing Liquidity Facility (FLPP) currently being replaced by SSB (interest rate subsidy) for us should not be a constraint," said Chairman of the Yogyakarta Regional Board of REI, Nur Andi Wijayanto in Yogyakarta, Monday (7/31/2017). )

According to him, the policy is not very influential because enthusiasts of subsidized housing segment in DIY is quite high. Moreover, although the FLPP mortgage budget is cut, the government raised the SSB KPR budget from Rp312 billion to Rp615 billion.

He hopes that the FLPP switch to the SSB will ensure the subsidy requirement for all home production for low-income communities built by developers.

According to Andi, since the beginning of 2017 residential sales of members of REI DIY has indeed been directed to target the lower middle segment. This is due to lower middle-class housing sales at a price of Rp 300 million to below is the only segment of property sales that did not contract in 2016, compared to other segments.

As for the sales of middle and upper segment housing with the price of Rp500 million upward in 2016 had a contraction of 30-40 percent decrease dah until now still slows down.

Total construction of houses in 2017 targeted REI DIY as much as 1,500 units or an increase from the realization of 2016 which reached 1360 units. Of the target, he said, as many as 500 units are intended for the middle to lower (middle low) and 1,000 units for middle up (middle up).

With the high demand of middle to lower class houses in DIY, he is optimistic that the target of building 500 subsidized houses can be achieved this year.

"We believe it is achieved because the sales of lower middle segment homes, especially the subsidized reached 50 percent," said Andi.