Indonesia: Infrastructure Supports Property Sector to Grow 15 Percent

• May 16, 2017

TEMPO.CO, Jakarta – The property industry is predicted to grow by 12 to15 percent in 2017.The big number of government infrastructure projects that is currently underway will assist the growth of the industry, according to Director for Consumer of Bank Tabungan Negara Handayani. “The government is pushing to build infrastructures that can improve the connectivity between the main cities and secondary cities. This will help support the property industry,” Handayani said on Tuesday, May 16.

As for railway connectivity, the government is currently planning to build 3,258 kilometers railway tracks by 2019 and has completed the 487 kilometers of it. Besides, the government has managed to complete the development of 56 harbors and five airports from the total 2019 target of 306 harbors and 15 airports.

The state is also expected to finish the 35,000 megawatts (MW) project by 2019. Until last year, a 195 MW was able to be completed with 8,200 MW in construction and 9,700 MW in preparation. 

“If it’s all completed in 2019, it will elevate the property industry,” she said.

Handayani also mentioned the recent economic stability which can be seen through competitive housing loans (KPR) interests during the first quarter of 2017.

Source: https://en.tempo.co/read/news/2017/05/16/056875816/Infrastructure-Supports-Property-Sector-to-Grow-15-Percent