Coordinating Minister Airlangga Support For Innovation And Creativity Efforts In Property Industry Development

Illustration (Photo: Doc. Antara)

JAKARTA - The government through the Coordinating Minister for Economic Affairs Airlangga Hartarto fully supports new initiatives in the development of the national property industry.

According to him, this step can contribute in itself in supporting efforts to restore the housing sector, which tends to be still under pressure due to the pandemic in recent years.

"Creative and innovative thinking must continue to be encouraged during the economic recovery period, so it is hoped that it can continue and produce strong property industry developers," he said in an official statement quoted on Thursday, September 8.

Airlangga added that the government as a regulator has issued a number of important policies as a form of partisanship in this sector. For example, the granting of Loan to Value (LTV) and Financing to Value (FTV) is up to a maximum of 100 percent for property loans, for banks that meet the requirements for the Non-Performing Loan/Non Performing Financing ratio.

"The government has also imposed an extension of the VAT incentive of a maximum of 50 percent for houses or units with a maximum selling price of IDR 2 billion, and 25 percent for houses or units with a selling price of above IDR 2 billion to IDR 5 billion until September 2022," he said.

Airlangga added that the various policies that had been disbursed were expected to stimulate the housing sector to rise. The reason is, the property industry has contributed a lot in supporting the economy.

It was stated that the contribution to GDP in the second quarter of 2022 reached 9.14 percent for construction and 2.47 percent for real estates. Meanwhile, the Commercial Property Demand Index rose in the last quarter by 1.58 percent.

"The real estate sector experienced a positive sales growth of 15.23 percent in the second quarter driven by improving all-type home sales, especially large-type houses by 29.86 percent, small and medium-sized houses by 14.44 percent and 12.25 percent, respectively," concluded Coordinating Minister Airlangga.