Bappenas Chief: Housing Sector Has a Major Multiplier Effect

Jakarta (ANTARA) – National Development Planning Minister and head of the National Development Planning Agency (Bappenas) Rachmat Pambudy said the housing sector has a major multiplier effect because it can drive various industries and related economic activity.

He said accelerating housing development needed to be supported by integrated planning, the use of data and technology, and appropriate area development.

“The property industry can be an indicator of whether the economy is recovering or declining. Housing development, through the work you [the Housing Minister] are doing, can attract and stimulate other industries. It should not stop simply because of the year or an election. There is still an opportunity to build in 2027, 2028 and 2029. The Ministry of National Development Planning/Bappenas will always support this work, especially key programmes such as housing and residential areas,” he said during a meeting with Housing and Settlements Minister Maruarar Sirait and ministry officials, according to a Bappenas statement issued in Jakarta on Thursday.

At the meeting, the Bappenas chief called for strengthening the national housing ecosystem as a key step towards speeding up the provision of homes for the public while also driving economic growth.

Rachmat said housing development required clear strategies and policies to ensure that government programmes were implemented in a focused and sustainable manner.

Strengthening the ecosystem was considered important both to address the housing backlog and to ensure development targets were met by the end of the national planning period.

“If we have a strategy and clear policy, then the programmes will also be clear. We have faced the challenge of the housing backlog for years. If the ecosystem is established and the strategy is clear, it will attract and drive many things,” the Bappenas chief said.

“You have created an ecosystem and developed a strategy; with a clear strategy and clear programmes, there will be results. Please make these results part of the acceleration effort. We will look more closely at speeding things up to meet the targets for 2027–2028,” the National Development Planning Minister said.

Housing and Settlements Minister Maruarar Sirait also outlined progress on various housing programmes, including home construction and renovation, subsidised housing finance, and strengthening the supporting ecosystem.

“ Housing programmes are also intended to have a wider economic impact through the involvement of micro, small and medium-sized enterprises (MSMEs) and the use of domestic products,” Maruarar said.