Economic bubble conditions that had led to the global economic crisis were generally created by activity in the property sector like in the US in 2008, he said on the sidelines of "Property Expo 2011" here on Saturday.
He said economic bubble conditions were also spurred by the perception that people in the middle or upper income brackets liked to buy high-priced homes.
"That habit grows mostly from the desire for high prestige," he said.
While the fact is, he said, that buying a home at a price far higher than normal in the market could create higher inflation.
"In view of that we asked Bank Indonesia some time ago to ask developers to control their property prices for the middle and high class so that they will not become too high," he said.
He said developers could make a profit but "it must not be too big to ignore the medium and low class of the community who also need homes," he said.
The minister said around eight million new homes are still needed to be built in the country.
With regard to efforts to accelerate housing development and reduce the demand for houses for the middle and low class he said his office was ready to realize the one million unit help-build housing program until 2014.
"The program is aimed at the middle and lower class as the price offered is very cheap namely Rp25 million a unit. The price is affordable because we give a subsidy," he said.
(Uu.H-YH/HAJM)
Editor: Priyambodo RH
Copyright © ANTARA 2011
