Real Estate Sector Among Biggest Contributors to GDP

Speaking at the 2023 XVII National Conference of Real Estate Indonesia (REI) in Gandaria, South Jakarta on Wednesday, (09/08/23), President Jokowi  said that he was pleased that the real estate industry was one of the biggest contributors to the country’s Gross Domestic Product (GDP), according to reporting from Tempo.

“The annual contribution in 2018-2022 reached IDR 2,300 to 2,800-trillion. This is huge and contributes 16-percent of our GDP. And the labour force involved reaches 13 to 19-million,” the President said in his remarks.

According to him, many countries want to boost their economy through the property business given the sector’s high contribution to GDP. He also assessed that the business brings a multiplier effect on 185-other industrial sub-sectors, report Tempo.

“[It has] a multiplier effect on 185 sub-sectors of all industries including cement, bricks, iron, and paint. All these sectors are running when the property and real estate industry is running,” the President added.

However, he warned against such businesses that could not survive due to the onslaught of the COVID-19 pandemic and the economic crisis. He cited an example of a giant real estate company in China that collapsed as a result of these two factors, owing up to IDR 4,400-trillion.

“Once again, be careful about this. Everything has to be controlled, on how much the backlog is. We cannot just develop [real estate] when our backlog is gone. The management has to be controlled, and thank God, the situation is not happening in Indonesia,” Jokowi said.

Source: Tempo

Photo: BPMI Setpres/ Muchlis Jr

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