Jakarta: State-owned lender Bank Tabungan Negara (BTN) President Director Maryono pointed to the dismal ratio of home loans (KPR) to the national gross domestic product (GDP) in Indonesia at 2.9 percent, well below its potential.
"The ratio of KPR to the GDP is only 2.9 percent, lower than Malaysia's 38.4 percent and 22.3 percent of the Philippines. The low ratio is indicative of the fact that there is still ample room to develop the housing business. Promoting the property sector will also have a ripple effect on 136 other property sub-sectors, he remarked here on Wednesday.
Based on research conducted by the bank's Housing Finance Center (HFC), the BTN House Price Index (BTN HPI) in the first quarter of 2019 increased 7.34 percent to 163.90 than the corresponding time frame last year.
The first-quarter BTN-HPI recorded a faster growth in comparison with 6.44 percent in the same quarter last year, he noted.
The BTN-HPI had once come under pressure during the 2015-2018 period. The index plunged, from 14.30 percent during the first quarter of 2015 to 11.49 percent in the first quarter of 2016, and further dropped in the first quarter of 2017 and 2018 to merely 6.44 percent.
"However, we remain optimistic that the property prices will further increase this year, along with the completion of infrastructure projects," he stated.
On the basis of the HFC data, Maryono remarked that at least six districts and cities recorded BTN HPI that was above the average national BTN HPI, specifically Batang, Central Java, at 253.29; Jember, East Java, 252.20; Batam, Riau Islands, 232.28; Bantul, Yogyakarta, 221.62; and Banyumas, Central Java, 232.28.
East Jakarta stood sixth, at 215.50. Several recently completed infrastructure projects, including toll road and railway lines, are found in East Jakarta.
Maryono is upbeat that the property stakeholders' serious efforts will reduce the property backlog, presently recorded at 11.4 million. (Antara)