“I think growth is happening across the board. What’s certain is that public spending will increase rapidly, and the property sector will perform well,” Sadewa said in response to journalists’ questions at the Indonesian Presidential Palace, Tuesday (September 30).
He added that the government has encouraged banks to lower credit or financing interest rates by placing Rp200 trillion (approximately US$11.9 billion) in government funds from Bank Indonesia into five state-owned banks: Bank Mandiri, BNI, BRI, BTN, and BSI.
“I believe this will gradually flow into the property sector, where there’s a clear guarantee when people borrow. It hasn’t reached the sector yet, but I don’t think it will be long before it does,” Sadewa said.
Once the government-disbursed funds reach the property sector, Sadewa believes purchases of building materials such as cement will increase, and food and beverage consumption will also rise.
“So, all sectors should experience faster growth. This is what we’re trying to integrate into the system. It’s not selective; it’s up to the banks and the market to decide,” he explained.
“I’m not as smart as the economic actors when it comes to determining what works best for them. What I do is create conditions that allow them to optimize the resources and pursue the businesses they want,” he added.
Meanwhile, at the same location but in a separate session, Coordinating Minister for Economic Affairs Airlangga Hartarto also expressed optimism about a positive economic trend by the end of 2025.
“First, we see that government spending will be positive, which is good. Second, we’re continuing to monitor the inflow of investments as planned,” Hartarto said.
“Third, the stimulus released in the fourth quarter amounted to nearly US$2 billion, or around Rp30 trillion (approximately US$1.79 billion), which will certainly be very helpful,” the minister noted.
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Translator: Genta Tenri Mawangi/Mentari Dwi Gayati, Katriana
Editor: Azis Kurmala
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