"If we want to have sustainable domestic economic growth, which is healthy, and high purchasing power, housing development strategy is crucial," Sri Mulyani stated here on Monday.
According to the minister, urban population growth in Indonesia has reached 4.1 percent, higher than other developing countries such as China (3.8 percent) and India (3.1 percent), which also faced the problem of urbanization.
Therefore, adequate housing in urban areas is urgently needed to provide multiplier effect to the domestic economy.
"We need more houses because of the urbanization process and high urban population growth. Housing sector would provide a huge multiplier effect, as it can boost the economy," she remarked.
Sri Mulyani noted that housing demand in Indonesia has reached 820 thousand to one million houses a year.
Some 40 percent of the demand could be met through the involvement of private sector, 40 percent though independent wealthy citizens, and some 20 percent through the governments subsidy to poor people.
The government in 2016 had allocated Rp24.4 trillion of its state budget for the development of 21,763 units of apartments and 158,367 stimulant assistances for housing quality improvement.
In 2017, the number of apartments has increased to 13,253 units and stimulant assistances to 108 thousand for housing quality improvement.
The government has also provided Rp9.2 trillion of funds for 83,493 low-income families in 2016 and Rp9.7 trillion of funds for 175 thousand low-income families in 2017 through Housing Finance Fund Management Center (PPDPP).
As of now, state-owned secondary mortgage company PT Sarana Multigriya Finansial (SMF) has received Rp27.39 trillion of funding, including Rp1 trillion of state capital participation (PMN) in 2017, for 570 thousand lenders.
"Under the state budget instrument, we hope we can support the remarkable growth of housing with unequal public and regional incomes," Sri Mulyani remarked.
(Reported By Satyagraha/Uu.S022/INE/KR-BSR/A014)