If the property sector develops, other related fields will also grow because the middle-class constitutes a large number of people that constantly increases.Jakarta (ANTARA News) - Bank Indonesia believes that the property and automotive sectors will be able to boost economic growth in the future, especially in the second semester this year.
Director of Macro-Prudential Policies of Bank Indonesia Yati Kurniati said here on Thursday that the property and automotive sectors will serve as the driving forces of economic growth and will help other sectors grow, as well.
"If the property sector develops, other related fields will also grow because the middle-class constitutes a large number of people that constantly increases," she explained.
Kurniati also pointed out that to boost growth in the property and automotive sectors, the central bank has adjusted its loan-to-value policy.
"The relaxation of the loan-to-value policy is expected to improve growth in the property and automotive sectors," she affirmed.
So far, banks continue to play an important role in terms of funding to boost growth in the property and automotive sectors, amid global and domestic economic pressures, Kurniati stated.
Moreover, she admitted that some property developers relied on bond issuance and foreign loans.
Economic growth in 2015 and 2016 will be supported by the automotive sector, which still recorded an increase in production and demand, she remarked.
"The growth of the middle-class will raise demand for vehicles next year," Kurniati added.
In addition, Bank Indonesia predicted that the countrys economy will grow between 5.0 and 5.4 percent in 2015 and between 5.4 and 5.8 percent in 2016.
"The growth will be supported by structural reform, which is being carried out," she noted.(*)
Editor: Heru Purwanto
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