The Fate Of 30 Million Property Sector Workers Depends On Government Stimulus

JAKARTA - In the midst of the pressure of the corona virus pandemic or COVID-19, developers are trying to maintain business continuity along with the fate of 30 million workers in the property sector and its derivative industries. Their fate is determined by the stimulus provided by the government.

Chairman of the Property Division of the Indonesian Employers Association (Apindo), Sanny Iskandar, said that the continuity of the property business in a pandemic condition will also have an impact on labor issues.

According to Sanny, if the property industry and its derivative industries are disrupted, approximately 30 million workers will potentially be affected based on the results of a limited study by the Indonesian Chamber of Commerce and Industry (Kadin) and Real Estate Indonesia (REI).

Furthermore, Sanny said, the COVID-19 pandemic made it difficult for property entrepreneurs, because companies continued to incur operational costs. Meanwhile, the income is nil. However, employers continue to strive so that this sector is independent.

"So we all have to make every effort so that the property industry is not disturbed because there are 30 million workers who could potentially be affected. This is a very large number and is not playing games," he explained in Jakarta, Thursday, May 14.

Sanny said, one way to prevent companies from laying off employees is with stimulus assistance from the government. The stimulus referred to is the exemption of minimum costs for electricity, water and credit restructuring at banks.

Meanwhile, General Chairman of the DPP Real Estate Indonesia (REI), Totok Lusida, asked property business actors to be 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.

Totok said that what property entrepreneurs need most now is the restructuring of 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.

Not only that, Totok said, his party also asked for a stimulus for electricity and water. He admitted that he had written to PLN not to be charged a minimal fee, especially for malls, hotels and offices.

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

Deputy Chairman of Kadin for Property, Hendro Gondokusumo said the position of the property sector is closely related to other sectors (backward linkage) and affects the growth of other sectors (forward linkage). Thus, making the property sector have a central role in development.

"Of the 175 industrial sectors that have direct and indirect links to the property sector, the property industry has a 33.9 percent share of the final demand. So this is what makes the property industry the locomotive of national economic growth," he said.

According to him, this figure shows a high multiplier effect where if the property sector increases, it will have a direct impact on 33.9 percent of the related sectors. In fact, the contribution of Indonesia's property sector to GDP is still small compared to other countries in ASEAN.

The contribution of national property to GDP in 2019 was 2.77 percent, while Thailand could reach 8.3 percent, Malaysia 20.53 percent, the Philippines 21.09 percent and Singapore 23.34 percent.

"With a small GDP contribution, the national property sector has such a big influence on the associated industry. We hope that in the future this sector will get more attention. Moreover, it is directly related not only to employees, but also directly affects the people, especially with regard to housing. , "he explained.

Hendro also said that in the current situation, the movement of the domestic property sector must be optimized. According to him, 90 percent of Indonesia's property industry is local, even 100 percent for simple houses.

"This is very strategic to move our economy. Property is one of the industries that can enter remote areas in Indonesia and revive the local economy with its development," he explained.