Indonesia boosts development of property sector

The Indonesian government on Wednesday unveiled a fresh stimulus policy to help accelerate expansion of property sector in the country.

The new rules aim at encouraging developers to provide more houses for middle and low classes community amid rising demand in the country with over 250 million populations, Darmin Nasution, economic chief minister, disclosed here on Wednesday.

The government cut significantly the number of business license for developing one area from 33 to 11 and the period was shortened to 44 days from 769 to 981 with minimum size of location of 5 hectares, Nasution disclosed.

"The government needs to conduct breakthrough. So it decided to conduct the simplification on procedures,"he said.

Property sector is among the target of capital inflows into the country after the government relaxed tax amnesty program in June.

Most of shares of firms operating in property sectors have risen significantly at the Jakarta bourse since months ago as investors expect the assets repatriation will spur a huge inflow of capitals.

The central bank also supports the entry as it refrained from imposing easing policy last week despite subdued inflation and slowing global growth.

The government expects the country's economy would accelerate in a faster pace this year and next year, at 5.2 and 5.3 percent, respectively, amid contraction in some other countries.

The IMF has lowered its global growth forecast for this year and next year, 3.1 percent and 3.4 percent respectively, both 0.1 percent lower than its estimate in April. Enditem