Indonesia Becomes the World's Best Property Investment Destination
- VIVA/M Ali Wafa
Jakarta – The Indonesian Coordinating Minister for Economic Affairs Airlangga Hartarto claims Indonesia has become the best property investment destination in the world.
"The property industry is a driver of the Indonesian economy," Miniter Hartarto said through his official statement, on Saturday.
The contribution of the property industry to the Gross Domestic Product (GDP) in the second quarter of 2023 was recorded at 9.43 percent for the construction sector, and 2.40 percent for the real estate sector, the Minister continued.
According to the Minister, the property industry also provides a multiplier effect for its supporting industries, as well as influencing the development of the financial sector and significant employment.
Menteri Koordinator Bidang Perekonomian, Airlangga Hartarto
- Kemenko Perekonomian
In terms of demand, the demand index for commercial property in the rental category grew by 5.87 percent Year-on-Year (yoy) and the demand index for commercial property in the sale category increased by 0.36 percent yoy, in the second quarter of 2023, the Minister said.
This increase in the demand index, according to the Minister of Industry, can be a positive momentum for the commercial property industry, including potentially increasing property activity and sales in Indonesia as a whole.
The Minister also mentioned: "To encourage increased demand and investment in the property sector, the Government has issued various policies such as Loan to Value of 100 percent and Financing to Value for property loans which are valid until December 31, 2023,"
"Indonesia has become the best property investment destination in the world. With a population of around 273 million, and the demographic bonus that will haplen in the next few years, the demand for property in Indonesia, especially for smart and green cities, will also increase," Minister Hartarto concluded.
