Prospects Of Infrastructure And Property Sectors Amid Global Recession Potential

Illustration. (Photo: Doc. Antara)

JAKARTA - Knight Consultant Frank Indonesia said that the stability of national economic growth is the key to the readiness and resilience of Indonesia's infrastructure and property sectors in facing the potential global recession in 2023.

"The readiness of these two sectors really depends on the stability of national economic growth this year," said Senior Research Advisor Knight Frank Indonesia Syarifah Syaukat or commonly called Sari as reported by Antara, Monday, January 9.

Sari assessed that the readiness and resilience of the infrastructure sector is very dependent on the smooth business of its supporting ecosystems, including property, public transportation (construction of toll roads, airports, ports, and so on).

Meanwhile, for the property sector. Its readiness and resilience are highly dependent on consumer absorption of property products. Meanwhile, consumer absorption will be reflected in national economic growth.

Currently, the absorption power through fairly stable demand can be seen from the warehousing sub-sector and industrial estates. Meanwhile, the hotel and retail sub-sectors seem to be starting to rise from weakening conditions due to the pandemic.

"The majority of sources of infrastructure project financing come from within the country, so it can be said that the global recession has quite an impact but is predicted not to be too significant. However, the increase in inflation is one of the effects on the performance of the infrastructure sector, namely through the impact of rising material prices," said Sari.

Meanwhile, he continued, for the property sector, considering that investment and markets are still dominated by domestic or domestic forces, so they are still relatively safe. It is hoped that resilience can also be reflected in the recent revocation of PPKM.

Previously, Finance Minister Sri Mulyani Indrawati stated that Indonesia needed to be aware of various potential risks, one of which was a recession.

The potential recession this year is starting to be reflected in the International Monetary Fund (IMF) which estimates that the 2023 global economy will only grow 2.7 percent.

The IMF's estimate of the global economy in 2023 is lower than its estimate for economic growth in 2022 which is 3.2 percent and even a 6 percent growth realization in 2021.