"This sector not only absorbs a large number of workers, but also provides a multiplier effect on various derivative sectors such as the building materials and manufacturing industry as well as household appliances," expert staff for connectivity and service development at the ministry, Dida Gardera, said here on Friday.
As per data from the Central Statistics Agency (BPS), the real estate sector contributed Rp520.7 trillion (US$1 = Rp16,226) to the national GDP (gross domestic product) in 2024, reflecting a growth of 2.5 percent year on year (yoy).
The government is encouraging the growth of the sector, including through the target of building 3 million homes under the 2025–2029 National Medium-Term Development Plan (RPJMN), and the Government-borne Value Added Tax (PPN DTP) incentive for property, provided since 2023.
Director of promotion development at the Ministry of Investment, Rakhmat Yulianto, said that the property sector—especially the housing, industrial estate, and office sub-sectors—contributed Rp122.9 trillion, or 7.2 percent, of the total national investment realization last year.
According to Yulianto, property is the fourth-largest sector that contributed most significantly to investment realization in 2024.
In addition to property, four sub-sectors were included in the top five contributors to foreign direct investment (PMA) and domestic direct investment (PMDN) realization last year.
They comprised the basic metal industry, metal goods, non-machinery, and equipment (13.9 percent or Rp238.4 trillion); transportation, warehouse, and telecommunication (11.1 percent or Rp189.9 trillion); mining (10.8 percent or Rp184.7 trillion); and other services (7 percent or Rp120.8 trillion).
The overall investment realization from January to December 2024 stood at Rp1,714.2 trillion, an increase of 20.8 percent yoy.
The property sector, including housing, industrial areas, and offices, also contributed 9.33 percent to the realization of national investment over the past five years, Yulianto said.
Translator: Aji Cakti, Yashinta Difa
Editor: Aditya Eko Sigit Wicaksono
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