Overcoming Backlog, The Government Must Immediately Issue A Law For People's Houses

Illustration. (Photo: Doc. Antara)

JAKARTA - The role of the property sector, especially housing for the Indonesian economy, is considered to have a very big impact, especially since the housing sector has proven that it is able to contribute in realizing the dream of Low-Income Communities (MBR) to have decent houses. For this reason, the Government is asked to intervene to support the housing sector through the issuance of laws such as Mortgage Banking or Housing Financing.

Property Observer Panangian Simanungkalit said in 1950, Indonesia's 1st Vice President M. Hatta stated that in the next 50 years or in 2000, Indonesia is expected to be free from home ownership. In fact, when the 2nd President of Indonesia Suharto stepped down, the number of home shortages in Indonesia was only 5.3 million units. However, Panangian continued, now the number of housing backlogs in Indonesia has soared to reach around 12.7 million units.

To overcome this widening gap, it is necessary to take real sides with the Government, one of which is by immediately issuing the Mortgage Banking Law.

"Is it possible that the [Government] state intervened to make a new version of the Banking Law, including the Sharia Bank Law, Conventional Bank Law, and the Mortgage Banking Law, both sharia and conventional. In the end, the presence of the populist is a tool that will help the government in the people's home program," explained Panangian in Jakarta, Monday, October 23.

Panangian detailed, when at the end of the term of office of the 2nd President of Indonesia, Suharto, the number of house financing in one year reached around 200,000 housing units (KPR). Unfortunately, these achievements continued to fall to 40,000 units, in line with the crisis. Slowly, now the distribution has risen back to the position of 200,000 housing units per year after President Joko Widodo carries the One Million House Program.

"So this housing does need the Government's alignment with whether or not the Government must immediately issue the Mortgage Banking Law. Moreover, now the backlog numbers are very high and the next target is how to distribute up to 1.3 million mortgages so that the zero backlog target in 2045 can be achieved," said Panangian.

According to Panangian, the government's alignment also urges to be carried out because the acceleration of the housing sector will help the national economy.

"The housing sector is related to about 180 other sub-sectors. So if at this time only, the contribution of the housing sector to the national economy is only 2%, imagine if the percentage could be boosted, the impact would be even more devastating," he concluded.