Jakarta (ANTARA News) - Developers said that property industry in Indonesia was predicted to grow at 5 to 10 percent in 2008 only due to market uncertainty and various economic turbulences at home and abroad.
"The property industry is predicted to grow at five to ten percent only due to economic turbulences at home and abroad," Johannes Mardjuki, president director of PT Summarecon Agung Tbk, said here on Saturday.
The global turbulences as a result of the United States subprime mortgage and European financial crisis would affect the world`s economic growth.
He said that the sluggish world economic growth was believed to have impacted the Asian region, including Indonesia which was forced to revise its economic growth target at over six percent.
Mardjuki said that the US and European financial crisis could, however, be balanced by the high growth in China and India which grew over ten percent, thus still allowing the Asian market to grow well.
He said the increase in the world`s crude oil price which happened to reach US$100 per barrel some time ago also raised concern, though it had returned to US$80 per barrel now.
The increase had created a deficit in the government`s expenditure budget.
Therefore, developers were still cautious in setting a growth target in the property sector because the market situation was uncertain, he said. (*)