JAKARTA - Senior Economist of the Institute for Development of Economics and Finance (Indef) Aviliani suggested that the government needs to increase public income to maintain purchasing power for housing without the need for Housing Financing Liquidity Facilities (FLPP).
"So the first homework going forward is how the government increases people's income, because if the income community has increased, automatically there is no need for FLPP," said Aviliani, quoted from ANTARA, Tuesday, June 4.
In addition, he also asked the government to control house prices so that they can still be reached by the public.
He conveyed that currently most of the people are informal sector workers whose income is inadequate and non-permanent, making it difficult to gain access to banking services, especially home loans because it is a long-term loan.
With increased income, Aviliani hopes that banks will be willing to provide loans to the public so that access to financing for housing can be easier.
In addition, he said that now people's purchasing power for housing is still low, especially for houses worth under Rp500 million.
As many as 80 percent of the people also choose to build their own house if it has costs.
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According to him, currently more demand is shown for luxury houses worth IDR 2 billion which can only be purchased by groups of people who already have a fixed income and adequate financial capacity.
Meanwhile, in terms of supply, Aviliani said that property developers also tend not to be interested in building simple houses due to small profits.
Considering these various factors, he also argues that collecting mandatory contributions for Public Housing Savings (Tapera) based on Government Regulation (PP) 21 of 2024 concerning the Implementation of Tapera does not need to be carried out.
"So it is the urgency of Tapera for now that we see it is not urgent," he said.
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