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Experts Predict Slow Development of Housing Projects

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18 April 2017 00:46 WIB

TEMPO.CO, Jakarta - A number of businesses experts provided an evaluation on the performance of subsidized housing development. Experts asserted that the low percentage of housing construction achievement is mainly caused by a number of obstacles faced in the beginning of 2017.

Chairman of the Indonesian Real Estate Company Association (REI) Soelaeman Soemawinata, said that the first quarter of 2017 will witness high demands for housing loans, better known as KPR The prediction was made following REI's evaluation on a number of regional transactions.

"We recently visited South Kalimantan where there's 6,000 units [of public housing], South Sulawesi that has 8,000 units filed for KPR although not all applications were approved," Soelaeman said on Monday, April 17, 2017.

According to Soelaeman, the condition indicated that banks have not prepared themselves in facing a sudden surge in KPR demands. It also showed that banks are experiencing backlogging due to lack of alternative banks, such as regional banks.

"Bank BTN experienced the most notable backlogging, which we hope can be resolved. Starting from this month, we will hold routine meetings with BTN in order to evaluate the realization of their actual KPR FLPP," Soelaeman said.

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