JAKARTA - The Coordinating Ministry for Economic Affairs revealed that the property sector plays a strategic role as a driving force for the national economy.
"This sector not only absorbs large amounts of labor, but also provides multipliers of effect on various derivative sectors such as the building and manufacturing materials industry, household appliances," said Coordinating Minister for Economic Affairs Airlangga Hartarto in his remarks delivered by Expert Staff for Connectivity and Services Development of the Coordinating Ministry for the Economy Dida Gardera in Jakarta, quoted by Antara, Friday, May 23.
Data from the Central Statistics Agency (BPS) noted that the real estate sector contributed IDR 520.7 trillion to the national GDP with a growth of 2.5 percent year on year throughout 2024.
The government encourages this sector to continue to grow, among others, through the target of building 3 million houses in the 2025-2029 National Medium-Term Development Plan (RPJMN), as well as the extension of property Value Added Tax incentives (PPN DTP) since 2023.
Director of Promotion Development of the Ministry of Investment/BKPM Rakhmat Yulianto said that the property sector, especially housing sub-sectors, industrial estates and offices, had donated Rp122.9 trillion or 7.2 percent of last year's total national investment realization.
According to Rakhmat, property ranks fourth in the sector that contributed the most significantly throughout 2024.
BACA JUGA:
Apart from property, the four sub-sectors included in the top five realizations of Foreign Investment (PMA) and Domestic Investment (PMDN) last year were the basic metal industry, metal goods, non-machinery and equipment (13.9 percent or Rp238.4 trillion); transportation, warehouses and telecommunications (11.1 percent or Rp189.9 trillion); mining (10.8 percent or Rp184.7 trillion); and other services (7 percent or Rp120.8 trillion).
The overall realization of investment from January to December 2024 is IDR 1,714.2 trillion, an increase of 20.8 percent on an annual basis (year-on-year / yoy).
In addition, Rakhmat said, the property sector, including housing, industrial estates and offices, also contributed 9.33 percent to the realization of national investment over the past five years.
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