Indef: Optimising Domestic Materials Key to Achieving 3 Million Houses

Jakarta (ANTARA) - Economist from the Institute for Development of Economics and Finance (Indef), Eko Listiyanto, stated that optimising construction materials produced by domestic manufacturers is one of the strategic keys to achieving the 3 Million Houses Programme amid geopolitical turbulence. “Indeed, the best approach is for the raw materials to rely on domestic sources, not just for roofing but also for other materials. This will relatively reduce dependence on global volatility, including price fluctuations,” Eko said when contacted by ANTARA in Jakarta on Monday. Optimising domestic construction materials to support the 3 Million Houses Programme can dampen the impact of global geopolitical uncertainty, as it avoids the need to import construction materials that may pass through conflict-prone regions. Eko also suggested that the economic policies of the 3 Million Houses Programme should be balanced with economic diplomacy to mitigate the effects of current global geopolitical volatility. For information, the Government projects that the 3 Million Houses Programme will revitalise the national economic ecosystem through the involvement of 185 downstream industries and drive the economy from micro-scale businesses to large corporations, providing multiplier effects and massive labour 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. 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 downstream industries divided into two main groups, namely the upstream and downstream sectors. This inter-sectoral integration is expected to drive sustainable economic growth during the construction period and post-handover.