3 Million Houses Programme Drives 185 Industries and Absorbs Workforce
Jakarta (ANTARA) - The government projects that the 3 Million Houses Programme will revive the national economic ecosystem through the involvement of 185 derivative industries and drive the economy from micro-scale businesses to large corporations, providing a multiplier effect and massive workforce absorption.
“The execution of the 3 Million Houses Programme triggers a chain reaction and multiplier effect that drives the economy from micro-scale businesses to large corporations,” said the Head of the Presidential Staff Office (KSP) Muhammad Qodari in Jakarta on Wednesday.
Muhammad Qodari explained that this multiplier effect arises due to a significant increase in demand for the domestic supply chain. This is believed to have a positive impact on business actors, both at the local and national levels.
The government notes that this housing development activates at least 185 derivative industries, divided into two main groups: upstream and downstream sectors. This inter-sector integration is expected to encourage sustainable economic growth during the construction period up to post-handover.
On the upstream side, the programme will increase the utilisation of domestic basic building material production. Some commodities directly affected include the cement, light steel, ceramics, bricks, roof tiles, and paint industries.
Meanwhile, economic activity on the downstream side will gain strong momentum after the handover of housing units to the public. This condition is predicted to benefit SMEs in furniture, household electronics producers, interior design service providers, as well as insurance and banking services.
Regarding employment, Muhammad Qodari revealed that building one landed house unit on average involves five to seven workers directly or indirectly. This figure indicates a huge potential for workforce absorption, given the target of building millions of units.
“This programme has created a new economic ecosystem that opens real job opportunities for the public,” said Qodari.
He explained that the programme also opens job opportunities for various supporting technical professions such as architects, civil engineers, and construction foremen. The presence of housing projects in various regions is expected to create new growth centres for professional workers in the construction sector.
The economic benefits of this programme are predicted to reach workers beyond the main construction process, including logistics drivers and factory workers for materials. In addition, informal sector players such as food vendors around project sites will also feel the positive impact from ongoing construction activities.