Housing Development Task Force Says Housing Construction Has Major Economic Impact
Cikarang, West Java – The chairman of the Housing Task Force, Hashim Djojohadikusumo, has stated that residential development can deliver substantial benefits to the national economy.
“Housing has an extraordinary impact on our economy, with multiplier effects ranging from 1.5 to 5 times. This means that every rupiah we spend on housing also has an extraordinary impact,” said Hashim during a site visit in Cikarang, West Java, on Sunday.
He explained that currently approximately 27 million families in Indonesia still live in unsuitable housing (RTLH). Meanwhile, the number of families waiting for adequate housing ranges from 9 million to 15 million.
Therefore, Hashim said, the government’s 3 Million Homes programme can help address economic problems, as property development involves 185 economic sectors, thereby serving as an engine for economic growth.
Hashim estimates the housing sector can contribute between 1.5 and 2 per cent to national economic growth.
He expressed optimism that the housing sector can assist the government in achieving its economic growth target of 8 per cent, given that the government is pursuing massive housing development.
The government is currently developing 45 hectares of land owned by the Ministry of Communication and Digital Affairs in Depok, West Java; 41 hectares owned by the Ministry of Defence in Central Jakarta; and 30 hectares in Cikarang, West Java, which was gifted by the Lippo Group.
“I am very confident that we will achieve 8 per cent growth, because from housing alone we have calculated 1.5 to 2 per cent,” he said.
Hashim noted that housing development will involve various parties actively, both from the government and private sectors.
CEO of Danantara Indonesia Rosan Roeslani also expressed full support for the housing development efforts underway, particularly on the land provided by the Lippo Group to the government.
Rosan stated that the company is preparing a budget of up to Rp16 trillion to support the development of vertical housing on the land.