Celios Economist: Vulnerable Property Sector To 2023 Recession

Director of the Center of Economic and Law Studies (Celios) Bhima Yudhistira. (Photo: Doc. Antara)

JAKARTA - The property sector is predicted to be one of the sectors vulnerable to the global recession in 2023.

The sector is indeed experiencing major challenges, especially because the increase in fuel oil prices (BBM) has triggered an increase in construction costs to raw materials.

"The sector that will be affected by economic pressure is the property sector, of course. This property is also affected by the increase in construction costs, raw materials, as well as mortgage interest rates," said Director of the Center of Economic and Law Studies (Celios) Bhima Yudhistira when contacted by VOI, Monday, October 31.

Therefore, Bhima assessed that the government needs to support this sector in order to survive through the storm of the global recession which is expected to occur in 2023. Moreover, this sector is related to hundreds of other sub-sectors.

"This property sector needs support. Because property is related to 175 sub-sectors ranging from ceramics, glass, bricks," he said.

It is not only large property companies that need government assistance, said Bhima, there are many MSMEs in the property sector who also need support from the government.

Furthermore, Bhima revealed, the support needed by the property sector included additional interest subsidies. Then also add down payment subsidies.

"And there are special interest rates for construction loans related to people's housing. In addition, the government can also encourage even larger social benefits," he explained.