Property Sector Contributes Rp122.9 Trillion to National Investment
Jakarta: The property sector, particularly the housing, industrial estate and office subsectors, has contributed Rp122.9 trillion to national investment. This figure represents 7.2 per cent of total national investment realisation last year.
"If we look at the figures from the previous year, the realisation in the property sector contributed 7.2 per cent of total national investment realisation," said Rakhmat Yulianto, Director of Promotion Development at the Ministry of Investment/BKPM, as quoted by Antara on Thursday, 17 April 2025.
According to Rakhmat, property ranked fourth among the sectors making the most significant contributions throughout 2024. Besides property, the four subsectors in the top five for Foreign Direct Investment (PMA) and Domestic Direct Investment (PMDN) realisation last year were basic metal, metal goods, non-machinery and equipment industries (13.9 per cent or Rp238.4 trillion), followed by transportation, warehousing and telecommunications (11.1 per cent or Rp189.9 trillion), mining (10.8 per cent or Rp184.7 trillion), and other services (7 per cent or Rp120.8 trillion).
Overall investment realisation for January-December 2024 reached Rp1,714.2 trillion, an increase of 20.8 per cent year-on-year.
Furthermore, Rakhmat said the property sector, including housing, industrial estates and offices, also contributed 9.33 per cent to national investment realisation over the past five years. "Investment realisation was dominated by PMDN at Rp350.13 trillion or 65 per cent during 2020-2024," said Rakhmat.
Meanwhile, Jakarta, West Java, Banten, Bali and North Maluku were the top five destinations for PMA and PMDN investment during the 2020-2024 period. "Then if we look at foreign investor trends, Singapore, China and Hong Kong still play an important role as they hold significant value," he said.
On the other hand, investment worth Rp13,032.8 trillion is generally needed to achieve the national economic growth target of 8 per cent. During the 2015-2024 period, the real estate sector's GDP experienced average growth of 5.31 per cent. The real estate and construction sectors contributed 6.74 per cent to the national workforce during 2020-2024.
"For 2025-2029, we need funding, and our estimate is more than Rp13,000 trillion. This is also expected to create quality housing whilst generating 3.3 million jobs," he said.
"If we look at the figures from the previous year, the realisation in the property sector contributed 7.2 per cent of total national investment realisation," said Rakhmat Yulianto, Director of Promotion Development at the Ministry of Investment/BKPM, as quoted by Antara on Thursday, 17 April 2025.
According to Rakhmat, property ranked fourth among the sectors making the most significant contributions throughout 2024. Besides property, the four subsectors in the top five for Foreign Direct Investment (PMA) and Domestic Direct Investment (PMDN) realisation last year were basic metal, metal goods, non-machinery and equipment industries (13.9 per cent or Rp238.4 trillion), followed by transportation, warehousing and telecommunications (11.1 per cent or Rp189.9 trillion), mining (10.8 per cent or Rp184.7 trillion), and other services (7 per cent or Rp120.8 trillion).
Overall investment realisation for January-December 2024 reached Rp1,714.2 trillion, an increase of 20.8 per cent year-on-year.
Furthermore, Rakhmat said the property sector, including housing, industrial estates and offices, also contributed 9.33 per cent to national investment realisation over the past five years. "Investment realisation was dominated by PMDN at Rp350.13 trillion or 65 per cent during 2020-2024," said Rakhmat.
Meanwhile, Jakarta, West Java, Banten, Bali and North Maluku were the top five destinations for PMA and PMDN investment during the 2020-2024 period. "Then if we look at foreign investor trends, Singapore, China and Hong Kong still play an important role as they hold significant value," he said.
On the other hand, investment worth Rp13,032.8 trillion is generally needed to achieve the national economic growth target of 8 per cent. During the 2015-2024 period, the real estate sector's GDP experienced average growth of 5.31 per cent. The real estate and construction sectors contributed 6.74 per cent to the national workforce during 2020-2024.
"For 2025-2029, we need funding, and our estimate is more than Rp13,000 trillion. This is also expected to create quality housing whilst generating 3.3 million jobs," he said.