Jakarta (ANTARA) - Chairman of the Indonesian Chamber of Commerce and Industry (Kadin), Anindya Bakrie, said that the People's Business Credit (KUR) Program for the housing sector could absorb up to nine million workers.

This figure does not only include direct employment in the construction sector but also the domino effect on related industries.

He explained that the construction and housing sector is the fourth-largest labor absorber in the country, employing around eight million people, or six percent of the total workforce.

"Every house built can absorb an average of 5-6 workers and stimulate more than 140 related industrial sectors, from cement, steel, wood, to transportation services," he remarked on Tuesday (September 16).

Anindya believes that the high cost of capital in the market — with mortgage interest rates reaching 11-12 percent — is a major obstacle for developers.

Therefore, his party supported the Housing Business Credit (KUR) scheme with its 5 percent interest subsidy.

With a budget allocation of Rp130 trillion (US$7.7 billion) this year, he stated that this program has the potential to directly employ 4-5 million workers.

When combined with supporting industries such as cement, steel, ceramics, furniture, and logistics, the total job creation could reach nine million, he continued.

The KUR program is a government initiative that allocates Rp130 trillion this year to help people own houses.

This program aims to address the housing shortage and simultaneously stimulate national economic growth.

This KUR is divided into Rp117 trillion (US$6.9 billion) for the supply side and Rp13 trillion (US$769 million) for the demand side. The supply side includes housing developers, construction service providers, and building material MSMEs.

On the demand side, this credit can be utilized by individual MSMEs to support their business activities.

On the same occasion, Rosan Roeslani, Minister of Investment and Downstreaming, said that this program could significantly contribute to the economy.

By 2024, this sector could create 10 million jobs and contribute Rp94.5 trillion (US$5.5 billion) in investment, he informed.

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