Property Sector Plays Strategic Role as National Economic Driver
JAKARTA - The Coordinating Ministry for Economic Affairs has revealed that the property sector plays a strategic role as a driving force for the national economy.
"This sector not only absorbs large amounts of labour, but also provides a multiplier effect on various derivative sectors such as building materials, the manufacturing industry, and household appliances," said Coordinating Minister for Economic Affairs Airlangga Hartarto in remarks delivered by Expert Staff for Connectivity and Services Development at the Coordinating Ministry for the Economy, Dida Gardera, in Jakarta on Friday, 23 May.
Data from the Central Statistics Agency (BPS) noted that the real estate sector contributed IDR 520.7 trillion to national GDP, with growth of 2.5 per cent year on year throughout 2024.
The government is encouraging the sector to continue growing through measures including a target of building three million houses under the 2025-2029 National Medium-Term Development Plan (RPJMN), as well as the extension of property Value Added Tax incentives (PPN DTP) in place since 2023.
Director of Promotion Development at the Ministry of Investment/BKPM, Rakhmat Yulianto, said that the property sector — particularly the housing, industrial estates and offices sub-sectors — contributed IDR 122.9 trillion, or 7.2 per cent of last year's total national investment realisation.
According to Rakhmat, property ranks fourth among sectors making the most significant contributions throughout 2024.
The four sub-sectors comprising the top five realisations of Foreign Investment (PMA) and Domestic Investment (PMDN) last year were: the basic metal industry, metal goods, non-machinery and equipment (13.9 per cent or IDR 238.4 trillion); transportation, warehousing and telecommunications (11.1 per cent or IDR 189.9 trillion); mining (10.8 per cent or IDR 184.7 trillion); and other services (7 per cent or IDR 120.8 trillion).
Overall investment realisation from January to December 2024 reached IDR 1,714.2 trillion, an increase of 20.8 per cent on a year-on-year basis.
Rakhmat added that the property sector, encompassing housing, industrial estates and offices, also contributed 9.33 per cent to national investment realisation over the past five years.
"This sector not only absorbs large amounts of labour, but also provides a multiplier effect on various derivative sectors such as building materials, the manufacturing industry, and household appliances," said Coordinating Minister for Economic Affairs Airlangga Hartarto in remarks delivered by Expert Staff for Connectivity and Services Development at the Coordinating Ministry for the Economy, Dida Gardera, in Jakarta on Friday, 23 May.
Data from the Central Statistics Agency (BPS) noted that the real estate sector contributed IDR 520.7 trillion to national GDP, with growth of 2.5 per cent year on year throughout 2024.
The government is encouraging the sector to continue growing through measures including a target of building three million houses under the 2025-2029 National Medium-Term Development Plan (RPJMN), as well as the extension of property Value Added Tax incentives (PPN DTP) in place since 2023.
Director of Promotion Development at the Ministry of Investment/BKPM, Rakhmat Yulianto, said that the property sector — particularly the housing, industrial estates and offices sub-sectors — contributed IDR 122.9 trillion, or 7.2 per cent of last year's total national investment realisation.
According to Rakhmat, property ranks fourth among sectors making the most significant contributions throughout 2024.
The four sub-sectors comprising the top five realisations of Foreign Investment (PMA) and Domestic Investment (PMDN) last year were: the basic metal industry, metal goods, non-machinery and equipment (13.9 per cent or IDR 238.4 trillion); transportation, warehousing and telecommunications (11.1 per cent or IDR 189.9 trillion); mining (10.8 per cent or IDR 184.7 trillion); and other services (7 per cent or IDR 120.8 trillion).
Overall investment realisation from January to December 2024 reached IDR 1,714.2 trillion, an increase of 20.8 per cent on a year-on-year basis.
Rakhmat added that the property sector, encompassing housing, industrial estates and offices, also contributed 9.33 per cent to national investment realisation over the past five years.