The finding was the result of a survey done by a researcher from the University of Indonesia (UI) some time ago, Setyo Maharso, chairman of Realestat Indonesia (REI), said.
In a press statement issued here on Wednesday in connection with REI`s plan to hold a national meeting from November 29 to December 1, Setyo said in the world in general the housing development sector (real estate industry) had in the past two or three decades played an increasing role in countries` economies.
"Several researches in the world that discussed the real estate sector implied that the role of the housing sector in a country`s economy is very significant," he said.
Quoting some examples he referred to the sector`s contribution in Germany and Japan that reaches 2.5 to 4.5 percent, Canada and the US around 5-9 percent, Britain around 17 percent and Australia around 28 percent.
In ASEAN countries it contributes between 21 and 23 percent in Malaysia, the Philippines and Singapore and around eight percent in Thailand, he said.
"The results of the study also shows Indonesia`s GDP in 2010 was recorded at Rp6,419 trillion. At the end of the second quarter of 2011 it was recorded at Rp1,811 trillion," he said.
In 2010 contribution from the financial, real estate and construction and corporate service sectors was recorded at an average of 16 percent. Contribution of real estate and construction sectors reached 9.4 percent.
In the second quarter of 2011, Setyo said the ratio of housing credit to GDP reached 9.10 percent. "With regard to Indonesia, based on spending on construction sector the housing sector contributes between 26 and 28 percent in the last four quarters. This is a bit higher than the credit ratio in the automotive sector to the GDP recorded at between 20 and 22 percent," he said.
REI national meeting organizer Reddy Hartadji meanwhile said he was optimistic the housing sector`s contribution to economic growth in Indonesia would remain high "as proven by the fact that housing and non-housing sector is ranked second after trading in terms of latest demand which is worth Rp282 trillion."
This shows that the Indonesian people have huge potentials to mobilize their spending for buying real estate products. "Latest demand for automotive products was only Rp114 trillion," he said.
REI`s meeting this year carries a theme of "Real Estate Industry Locomotive of National Economic Growth." (*)
Editor: Aditia Maruli Radja
Copyright © ANTARA 2011
