REI Optimistic Property Sector Grows 10 Percent This Year

INDUSTRY.co.id - Jakarta - Real Estate Indonesia (REI) Chairman Soelaeman Soemawinata predicts that property business this year will grow and better compare to last year.

"This year I hope to be 10 percent. If we are optimistic move, "said Soelaeman in Jakarta yesterday.

According to him, many things that affect the optimism of property growth this year. One of them is licensing. Currently, the government has cut licenses. He hopes it will have an impact on the property sector so permissions will be easier.

"Because the faster the implementation, the faster marketed, the faster built, because we already promise with customer," he said.

According to him, some developers also expressed optimism for the growth of the property sector better this year.

Property sector growth will be driven by the housing sub-sector, especially from the middle class. Total capitalization is estimated to reach Rp 40 trillion from all sub-sectors. The estimated figure is up 25 percent compared to the realization in 2017 which amounted to Rp 32 trillion.

From the regulatory policy side, Soelaeman considers Bank Indonesia's policy to be accurate, such as loan to value (LTV) policy based on the weakening of property condition. However, he also hopes for spatial LTV policy by region. The policy requires accurate data and information from REI.

According to him, spatial LTV policy is needed because regional economic conditions in Indonesia vary.

"If LTV can be spatially operated on the basis of information from us which must be cooperated with Bank Indonesia by providing accurate data, I think it could be better because it can encourage property throughout Indonesia because the economic character is different," said Soelaeman.