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Prabowo team vows to bulk up property sector to quarter of GDP
Pointing to China as an example, Prabowo’s team says housing and the related construction sector could become a major driver of economic activity in Indonesia.
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A subsidized housing complex is seen on Aug. 1, 2024, in Puuwatu district of Kendari, Southeast Sulawesi. (Antara/Andry Denisah)
T
he housing program is poised to become a central driver of economic activity under president-elect Prabowo Subianto, who aims to have the sector contribute a quarter to the national economy and support his ambitious goal of 8 percent gross domestic product growth.
Hashim S. Djojohadikusumo, Prabowo’s brother and head of the president-elect’s housing task force, highlighted that the housing sector had been identified as an economic growth engine, inspired by the success of countries like China.
“From the 1980s to 2017, China’s housing sector contributed 25 percent to its GDP. For 35 years, China's economy grew at approximately 10 percent, driven by housing and related sectors, including construction,” Hashim said on Thursday, as quoted by Kontan.
The housing sector currently contributes only about 3 percent to the national economy.
Hashim suggested that the government supply at least 37 million housing units to close the housing gap and improve living standards.
According to Hashim, 27 million homes are currently considered uninhabitable, while Statistics Indonesia (BPS) reported a housing backlog of 9.9 million units in 2023. The backlog has been growing by 800,000 units per year because of the growth of new households in need of a home.
In his presidential election campaign, Prabowo pledged to build 3 million houses annually to address the country’s housing deficit, tripling the target set by President Joko “Jokowi” Widodo.
