Property 'the most hit' by govt policies

Property 'the most hit' by govt policies

JAKARTA (JP): Several monetary policies introduced after the
floating of the rupiah in mid-August has hit much of the property
sector, the Indonesian Association of Real Estate Developers
(REI) has said.

The association's chairman, Edwin Kawilarang, said in a
statement Thursday that property development was mostly curtailed
by the bank credit limitations imposed by Bank Indonesia, the
central bank.

The government's tight monetary policy and high interest rates
imposed by the central bank following the floating of the rupiah
also burdened the property sector, he said.

"The tight monetary policy, preceded by the hiking of the Bank
Indonesia certificate to 30 percent a month, has knocked down
real estate," Edwin said.

The property sector, like any other business sector in
Indonesia, was also burdened by the weakened rupiah, the high
cost of getting government licenses and bureaucracy.

Edwin said his association would hold a national congress and
seminar on Nov. 24 and Nov. 25, to discuss ways of getting out of
the crisis.

"Through the congress and seminar, REI wants to relay the
importance of easing liquidity and lowering bank lending rates to
revive the property sector," Edwin said.

He said his association would also call on the government to
introduce regulations on long-term financing for property, like
secondary mortgage facilities.

"The formation of an employee home savings fund should be
materialized soon so that low-paid employees still have access to
housing loans despite the tight liquidity policy," Edwin said.
(rid)