Thu, 23 Dec 2010

Jakarta (ANTARA News) - Real Estate Indonesia (REI) is optimistic the property sector will grow by up to 15 percent in 2011 compared to 10-12 percent this year.

"The key to the property sector`s growth for middle- and low-cost houses is in regulations and next year the problem is expected to be finished while the macro-economic condition would also be good. So we are optimistic the sector will grow that high," REI`s general chairman Setyo Maharso, said to newsmen at the Property Outlook 2011 here on Wednesday.

He said the development of middle- and high-cost houses meanwhile would fully depend upon market mechanism and the condition of the country`s macro-economy.
Referring to several macro-economic indicators such as the stable rupiah exchange rate at around Rp9,100 per US dollar and controlled rate of the SBI despite high
inflation Setyo said he was optimistic the predictions would be met.

"The 4.5 percent growth in 2009 was already enough to bring stability on the property market. Now in 2010 the economy is projected to grow up to 5.90 percent. This is even better. The World Bank meanwhile predicts Indonesia`s economy will grow 6.2 percent in 2011," he said.

He said the banks that distribute house credits (KPR) have also varied and provided affordable interest rates for consumers.

For the middle and low class the government meanwhile has provided a Housing Financial Liquidity Facility. "So if the regulations are already in place what should we wait. This is certainly positive," he said.

So, in general the Indonesian property sector would continue to record good investment growth. Even, the country`s market is being targeted by foreign investors although regulations for this are not yet conducive, he said.

REI recorded until December 2010 realization of welfare houses by its members across the country is estimated to reach 120,000 units with most consumers using housing credits from BTN Bank.

Realization of houses built using subsidized and non-subsidized credits from BTN until September 2010 reached 107,673 units with payments reaching Rp7.4 trillion.(*)