REPUBLIKA.CO.ID, JAKARTA -- The Indonesian Government and Real Estate Indonesia (REI) should develop a synergy to realize a project announced by President Joko Widodo to build one million houses annually.

"The one-million houses program designated by the government cannot be realized if there is no synergy and unity for its realization," Public Works and Public Housing Minister Basuki Hadimuljono said in a press statement here Monday.

The government is expected to provide subsidies for interest on credits obtained for buying houses.

The interest rate is also expected to be reduced from 7.25 percent annually to 5 percent annually for a period of 20 years.

The government has allocated Rp220 billion in the revised State Budget 2015 for assistance in the down payment for housing credits.

Those who are entitled to the financial assistance are the buyers of modest houses who have a maximum salary of Rp4 million per month and the buyers of modest apartments who have a salary of Rp7 million per month.

The minister remarked that he expected a revision of government regulation on the construction of modest houses for low-income people.

Chairman of REI Eddy Husdi expressed hope that the Jokowi administration can encourage the property sector to contribute to the society optimally.

"The new government must be able to establish a balance between the national and regional levels and inter-regional level to create a better business climate," he added.

Meanwhile, the Indonesian Property Watch has suggested that the government prioritize the one-million program to meet the housing demands of the low-income group that has been forgotten by most developers.

"The Indonesian Property Watch has urged the government to continue the implementation of the one-million program, particularly considering the supply factor," Executive Director of Indonesia Property Watch Ali Tranghanda stated.

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