Property Entrepreneurs Request Government Firmness On Credit Restructuring

JAKARTA - Chairman of the DPP Real Estate Indonesia (REI), Totok Lusida asked the government to be firm about the restructuring of credit for the property sector in the midst of the coronavirus pandemic or COVID-19. This is because the bad effects of this pandemic have been felt by all sectors, including property.

According to Totok, property business actors are ready to carry out the government's request not to terminate their employees. However, this must be supported by certainty that the restructuring in accordance with OJK Regulation (POJK) Number 11 / POJK.03 / 2020 can run smoothly.

Furthermore, Totok explained, it is also important to obtain stimulus for property business actors. This is because loans in the property sector account for 17.9 percent of total loans in Indonesia. There are approximately IDR 1,000 trillion from IDR 5,000 trillion or nearly 20 percent.

"The current condition, we are not asking because the company has collapsed. But indeed we have to help the workforce, so we need to get a stimulus in debt restructuring in banks. What property is doing in the sense that there are developers, end users and banks, "he said, in a video conference with journalists, Thursday, May 13.

Totok said what was needed most now was restructuring the postponement of principal and interest payments. According to Totok, this is important so that the cash flow owned by employers can be used to pay employee salaries.

Furthermore, Totok said, banks should not hang around for too long or not provide clarity regarding this credit relaxation.

"With the lack of firmness in instructing the government even though it is a private bank, because the domino effect is greater in the property sector, we need certainty, if it is not certain that a long time ago, developers who are under REI or Kadin in the property sector will even disturb Apindo's troubles," he said.

In addition, according to Totok, his party is also a stimulus to ask for electricity and water. He admitted that he had written to PLN not to be charged a minimum fee, especially for malls, hotels, offices.

"Why do I ask that there is no minimum burden for PLN and regional PDAMs? Because it was not me who told the mall to close. It was also the government who ordered the mall to close. But PLN, as a government property, still charges a minimal fee, right? It is burdensome. Employees do not enter, they are paid. But subject to a minimum load, "he said.