TEMPO.CO, Banyuwangi - Head of the East Java Real Estate Indonesia (REI), Paulus Totok Lusida, said the price for a simple house in Java and Sumatra of Rp105 million per unit is far from realistic. "REI has proposed that the price for a simple home to be at Rp130 million per unit," said Paulus.
Moreover, the price was decided by the Public housing Ministry in June, far later than January's price issuance. In January, the US dollar exchange rate is at around Rp10,000 per US dollar. In August, the rate jumped to Rp12,000 per US dollar.
Therefore, it affects house sales, in which REI East Java could only realize 20-30 percent from the total demand of 500,000 units. REI is also pessimistic that the backlog demand will be met, given the notion of fuel price hike. "The realization will be so slow," Paulus stated.
Previously, the ministry issued a policy that a small-sized house of 36 square meters is tagged around Rp105 million. The policy came in as the demand for house in Indonesia had reached 13 million units. However, the government can only build up to 200,000 houses per year.