Property Sector Deemed Strategic for National Economy
The government considers the property sector to still hold a strategic position in supporting the national economy because its activities are connected to around 183 industrial sub-sectors, ranging from cement, steel, ceramics and glass to banking and housing finance.
Pujo Setio, Secretary to the Deputy for Trade and Digital Economy Coordination at the Coordinating Ministry for Economic Affairs, said that this extensive interconnectedness means growth in the property industry produces a multiplier effect on economic activity and employment.
“The property sector has a very broad multiplier effect on the economy. Its ecosystem involves around 183 sub-sectors, from the cement, steel, ceramics and glass industries to banking through mortgage financing. Strengthening the property sector therefore also means strengthening economic activity and the domestic supply chain,” Pujo said at The People’s Choice 2026 by Golden Property Awards in Jakarta.
According to him, the real estate and construction sectors cumulatively contribute around 9%–14% to national gross domestic product and absorb millions of workers.
This extensive interconnectedness means that housing policy does not only affect developers, but can also ripple through to the building materials industry, construction services, the financial sector and household consumption.
The government is currently using a number of instruments to sustain property demand, including the Government-Borne Value Added Tax incentive, the housing finance liquidity facility for low-income communities, and a loan-to-value policy of up to 100% for property loans and financing.
The loan-to-value policy of up to 100% for property loans or financing has been extended until 31 December 2026.
However, according to Pujo, strengthening demand needs to be accompanied by greater use of domestic products so that property sector growth has a larger impact on national industry.
Future residential area development is also considered to need to be increasingly integrated with energy infrastructure and various supporting facilities, so that property growth also helps create a more productive and sustainable domestic supply chain.
Amid government efforts to maintain purchasing power, property consumer behaviour is also showing changes. Consumers are increasingly considering product quality, developer track record, area facilities and potential investment value before buying a home.
One indication of this can be seen in The People’s Choice 2026 voting held by Rumah123 together with Indonesia Property Watch.
A total of 111,000 consumers participated with around 427,000 votes to determine their choices for housing projects, home design, household appliances, building materials and supporting infrastructure.
With that number, each participant on average cast votes in three to four categories.
Indonesia Property Watch CEO Ali Tranghanda said this pattern shows that consumers no longer only use brand popularity as a consideration when choosing property products.
“Today’s consumers are no longer swayed by popularity or massive promotion. They take into account track record, quality of execution and long-term investment value,” Ali said.
This change in behaviour poses a challenge for developers because competition is no longer confined to price and location. Material quality, home design, area facilities and financing services are increasingly part of consumer considerations.
Discussions involving building material and energy industry players at the event also highlighted the widening range of factors that determine the appeal of a residential area, from construction quality and home appliances to the availability of facilities supporting daily activities.
Rumah123 Senior Commercial Advisor Maria Herawati Manik said the high participation in the voting also shows that consumers are increasingly active in assessing brands related to the process of owning and using a home.
“Every month millions of people open Rumah123 to look for a house, calculate their mortgage capacity and even apply for a mortgage. Reaching 427,000 votes is a strong signal that Indonesians are increasingly proactive in monitoring the brands that accompany their home ownership and occupancy journey,” she said.
This change in consumer character means competition in the property sector is widening. It is not only between housing projects, but also among producers of cement, paint, sanitaryware, smart home devices, electrical systems and electric vehicle charging infrastructure providers.
At The People’s Choice 2026, 55 awards were given across eight main categories and a number of special categories based on consumer voting results.
Ciputra Group received the Developer of the Year title, while Grand Wisata became Project of the Year. In the financing sector, balé by BTN received the Best Digital Mortgage Super Apps award.
Other awards covered housing projects from various regions as well as supporting industry brands, from building materials and household appliances to electric vehicle charging solutions.
99 Group CEO Darius Cheung said the increased consumer involvement shows that competition standards in the property industry are increasingly determined by the experience and assessment of end users.
“The People’s Choice 2026 is not merely an awards ceremony, but an affirmation of a new standard for the Indonesian property market,” he said.
Given the property sector’s extensive links to other industries, developers’ ability to maintain consumer demand while increasing the use of domestic products will be an important factor in determining the sector’s impact on the national economy.