President Jokowi Lauds Real Estate Association’s Performance amid Economic Slowdown

By Office of Assistant to Deputy Cabinet Secretary for State Documents & Translation     Date 9 Agustus 2023
Category: News
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President Jokowi accompanied by Cabinet Secretary Pramono Anung opens the 2023 National Conference of the Association of Real Estate Companies Indonesia (REI), at the Grand Ballroom of Sheraton Hotel, Jakarta, Wednesday (08/09). (Photo by: PR of Cabinet Secretariat/Jay)

President Joko “Jokowi” Widodo expressed appreciation to property and real estate sectors for staying robust and competitive amid global economic slowdown.

“I am glad that the sectors of property, real estate, and construction in Indonesia are able to remain strong, resilient, and more competitive during global economic slowdown”, he said during the opening of the 2023 National Conference of the Association of Real Estate Companies Indonesia (REI), at the Grand Ballroom of Sheraton Hotel, Jakarta, Wednesday (08/09).

According to the President, Indonesia’s real estate sector had made contribution of Rp2,300-Rp2,800 trillion to the country’s economy. The figure is equal to 16 percent of the country’s gross domestic product (GDP). He added that the REI also absorbed 13-19 million workforces.

“Why do many countries want to drive their economy through real estate and property sectors? It is because the sectors made huge contribution to the GDP. It also creates multiplier effect to 185 industrial subsectors; it is huge. There is no other industry with massive effect than property, real estate, and construction,” he said.

The President went on to say that property sector will bring multiplier effects to manufacturers of material, furniture, interior, electronics, kitchen appliance, and service industry.

“In term of material, the related industries such as cement, bricks, steel, and paint will be driven by property and real estate sectors. As for furniture and interior industry, demand for chairs, lamps, beds, toilets will be high since there are many new houses. In electronic industry, we are aware that new house needs TV, refrigerator, dispenser, and other house appliances. New house also needs kitchen appliances such as cookware, spoon, fork, and the like. Do not forget the service industry. Electrician, garbage man, gardener can be involved,” he added.

On that occasion, President Jokowi also said that robust economic growth also contributed to the resilience of property sector. For the record, Indonesia’s economy grew by 5.17 percent in the second quarter of this year and is among three countries with the highest economic growth in G20.

He also expressed hope that this National Conference can bring forth strategic measures to address challenges and take opportunities so that the REI can be more expansive and competitive. Without competitiveness, he added, no country can survive because all countries are in tight competition to improve the economy and secure investment.

“All countries are improving their services, speeding up permit and land acquisition process since we cannot depend only on the State Budget (APBN) to develop the country. Investment is the key,” he remarked. (FID/UN) (RAS/MUR)

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