Maruarar Eyes Further BI Monetary Policy Easing, Here's His Request

The government is relying on several policies to boost support for the housing sector, including Bank Indonesia’s Giro Wajib Minimum (GWM) policy, which has unlocked Rp80 trillion. This policy is part of the government’s effort to expand housing financing amid substantial public need. Support comes not only from the Ministry of Housing and Settlement Areas (PKP) budget but also involves monetary authority policies. Minister of PKP Maruarar Sirait stressed that the GWM policy is not under his ministry’s authority. He therefore hopes for a broader relaxation of the policy, so more funds can be utilised to support government housing programmes. ‘Create it for economic growth. Is that the authority of the Minister of Housing? No. Whose authority is it? Bank Indonesia,’ Maruarar said at the BPS office, quoted on Friday. The GWM policy relates to funds that banks are required to place with Bank Indonesia. When some of this liquidity space can be directed to support economic financing, sectors requiring credit can obtain additional support. For the housing sector, additional financing space is crucial because public need is not just about house construction. Access to credit also determines people’s ability to buy or build homes. Maruarar placed GWM alongside other instruments currently supporting the housing sector. The government also runs subsidised housing and Housing Micro Credit (KUR), while the ministry budget forms part of direct state support. ‘Previously there was no BI GWM, how much was it? Rp80 trillion? Now there is BI GWM of Rp80 trillion. Previously our budget last year was Rp5 trillion, now it’s Rp12.5 trillion,’ Maruarar said. The scale of this support means the housing sector no longer relies on a single source of financing. The government is trying to combine the state budget with monetary policy and bank financing to expand the sector’s capacity. When calculated alongside other instruments, the total direct and indirect support for the housing sector is said to reach nearly Rp200 trillion. This figure includes Rp55 trillion for subsidised housing, Rp50 trillion for Housing Micro Credit, Rp80 trillion from GWM, and the Ministry of PKP’s state budget allocation of Rp12.5 trillion.