LaNyalla: The Job Creation Law Will Revive The Property Sector, Encourage Cheap Housing In The Middle Of Cities

Chairman of the DPD RI, LaNyalla Mahmud Mattalitti. (Photo: Twitter @@ LaNyallaMM1)

JAKARTA - Chairman of DPD RI AA LaNyalla Mahmud Mattalitti asked the government to pay attention to eight important things in the property sector. These eight important sectors range from the realization of the Public Housing Savings program (Tapera) to various facilities in the property sector for low-income people (MBR).

"The property sector is very important, considering that this sector has a strategic role to increase the growth of 175 related industries. In which 38 sectors are directly related and 137 sectors are not directly related. And nationally it is able to absorb around 30 million workers," said LaNyalla in his written statement, Monday December 28th.

This was conveyed by LaNyalla when giving a speech at the opening of the FGD with the theme 'Encouraging National Economic Recovery through the Housing Sector', today. LaNyalla was present virtually because he already had a recess schedule so he could not attend in person.

The opening of the FGD was also attended by Vice President KH Ma'ruf Amin who acted as the keynote speaker, Minister of Public Works and Public Housing of the Republic of Indonesia Basuki Hadimoeljono, Minister of Agrarian Affairs and Spatial Planning RI / Head of the National Land Agency Sofyan Djalil, Chairman of OJK Wimboh Santoso, Chair of Committee IV DPD RI Sukiryanto, Chairman of Committee II DPD RI Yorrys Raweyai and Director General of State Assets of the Ministry of Finance Isa Rachmatarwata and General Chairperson of DPP REI Totok Lusida.

LaNyalla said that the housing sector needs special attention. Moreover, the property sector is one of the sectors affected by the corona virus pandemic (COVID-19).

"The blow to this sector is very much felt during the current COVID-19 pandemic. For example, commercial homes fell by 50 percent to 80 percent, offices fell 74.6 percent, malls fell 85 percent, while hotels were hit the hardest with a 90 percent decline. , "explained LaNyalla.

The former head of the East Java Chamber of Commerce and Industry hopes that the omnibus law of the Job Creation Law can again encourage the property industry. LaNyalla believes that Law No.11 of 2020 can restore the property market that has been affected by the pandemic.

"Because of the new regulations on the premium market in the Job Creation Law, where foreigners are given the convenience of buying apartments," said LaNyalla.

"And for the Low Income Community or MBR segment, the Job Creation Law mandates the establishment of the Agency for the Acceleration of Housing Management, thus opening up opportunities for the availability of cheap housing in the middle of the city," he added.

LaNyalla also discussed eight important topics in the property sector discussed in this FGD. According to him, the eight topics are the hopes of business actors in the property sector.

"We hope that, on this occasion, the eight topics will receive attention from the government, in this case the ministries and institutions that are present in this FGD," said LaNyalla.

The Eight Topics of LaNyalla

As for the eight topics, the first is relaxation for subsidized public housing for low-income people (MBR). Then second, the realization of the Public Housing Savings program (Tapera).

"Third, the housing finance program for ASN, TNI and Polri; Fourth, budget allocation for public housing subsidies for MBR; Fifth, tax relaxation in the property sector; Sixth, reduction in interest on construction loans and mortgage loans or KPR," explained LaNyalla.

"The seventh relaxation of interest payments and principal installments for MBR consumers and the eighth is the substance of implementing regulations for Law Number 11 of 2020 concerning Job Creation, so that it is truly in line with the vision to facilitate investment and create jobs," continued the Universitas Brawijaya graduate.

LaNyalla also hopes that this FGD will generate ideas that can be beneficial to the Indonesian economic sector, particularly in the property sector. Because according to the Chairman of the DPD, in this forum there was collaboration and direct meetings with several entities and policy makers in the financial and housing and land sectors.

"So it is very appropriate if the FGD this time is aimed at the acceleration of the National Economic Recovery which is currently the focus of the government to drive the domestic economy," concluded LaNyalla.

Meanwhile, the Chairman of the DPP REI emphasized the high interest rates of commercial banks, which did not follow the decline in the benchmark interest rate from Bank Indonesia.

"BI's interest rate is 3.5 percent, commercial banks should be in the range of 6 percent, but in fact it's now 12 to 13 percent," Totok concluded.