REI East Java Projects Property Sector In East Java To Grow By 20% In 2022
This article is adapted from Detik
The Regional Leadership Council of Real Estate Indonesia (DPD REI) East Java held a regional working meeting (rakerda) in the city of Batu, Malang on Tuesday and Wednesday (27-28/9). The performance projection of the property sector in East Java was also discussed during the agenda.
Chairman of DPD REI East Java Soesilo Efendy stated that the rakerda of REI East Java carried the theme 'Rise Together in the Era of Easy and Smooth Digital Permitting'. This theme aligns with the government's policy to launch the Online Single Submission, which includes permits for the property sector.
"The government's goal is to simplify. Because many systems are changing, achieving that goal requires a process," said Soesilo as quoted in a press release on Wednesday (28/9/2022).
Soesilo stated that REI East Java aims to encourage the successful socialization and implementation of this digital licensing process, following the procedures by developers in East Java.
In the rakerda, REI also held a talk show titled 'Digitalization of Permits in the Real Estate Sector After the Issuance of the Job Creation Law.' The talk show featured three speakers from the Ministry of Public Works and Public Housing (PUPR), the Ministry of Agrarian Affairs and Spatial Planning, and the Department of Housing, Settlements, and Works of East Java Province.
Soesilo explained that the talk show discussed solutions to the challenges in the property sector in East Java, including the implementation of the new system by the government. He mentioned that with the new system, entrepreneurs are required to meet accuracy, speed, and cost certainty. These three aspects, according to Soesilo, are still hindered in the OSS process due to various factors, including the lack of synchronization between regional and central human resources.
In another talk show, financing was discussed with the theme 'Recover Faster, Rise Stronger in Supporting Property Financing.' REI brought in speakers from the leadership of Bank BTN, BP Tapera, and the chair of the Sharia Economic Community (MES).
Soesilo stated that during the pandemic, many business sectors experienced a decline, and government support programs were very helpful. He outlined that REI members in various regions, such as Kediri, Banyuwangi, and Jember, have developed subsidized houses benefiting from the Subsidized Mortgage Program (KPR Bersubsidi). Meanwhile, in the Surabaya area and its surroundings, the construction of medium to lower-middle-class commercial cluster houses has been boosted by the 0% DP DTP program.
"REI is currently striving to continue, at least until December. Our target is a 20% growth in sales by the end of the year despite the increase in fuel prices and bank interest rates," Soesilo explained.
Soesilo stated that this target is not overly ambitious considering the national property growth is currently thriving. The General Insurance Association of Indonesia (AAUI) recorded a 36.4% growth in property insurance premiums in the first half of 2022. In Surabaya, local revenue increased due to the improved industry.
"Indeed, the property business is enjoyable. Property is related to 174 business sectors ranging from industry to Micro, Small, and Medium-sized Enterprises (UMKM)," Soesilo said.
Therefore, if the property industry flourishes, many sectors are affected. Conversely, upheavals in other industries also impact the property business. For example, the construction raw material industry, which currently puts pressure on developers due to the rising prices of steel even before the increase in fuel prices.
However, Soesilo remains optimistic that developers can plan strategic steps to overcome the pressures of rising fuel prices, bank interest rates up to 5 bps (4.5%), and rising raw materials. He emphasizes that the key lies in efficiency and speed to save costs. This is also supported by the use of prefabricated building materials.
"Including lightweight bricks. For speed, developers prefer to use lightweight bricks," Soesilo explained.
Blesscon has become the preferred brand of lightweight bricks among developers in East Java. The SNI label, which is only attached to Blesscon lightweight bricks, provides quality assurance that makes developers feel at ease. Henrianto, Commercial Director of PT Superior Prima Sukses, the manufacturer of Blesscon, ensures that product deliveries are made quickly. Currently, Blesscon has factories in Mojokerto, Lamongan, and Sragen.
"The coverage area is extensive. East Java developers whose areas are close to Central Java can be supported from Sragen. Thus, cutting time and shipping costs," said Henrianto."