Housing boost for Indonesian producers

Housing boost for Indonesian producers
Published: 24 February 2011

According to local news sources, the Indonesian President Susilo Bambang Yudhoyono has suggested that the construction of millions of very cheapest housing for the poorest and poor people in the country has to be a priority, which if enacted would provide a substantial boost for local cement producers, one estimate suggesting a 2-3Mt annual sales boost, without factoring-in related infrastucture developments.

"We can build several million homes with the very cheapest prices within one year and will continue to do so," the president said. The head of state proposed that the prices of the cheapest houses would range from IDR5m to IDR10m per unit (US$600-1200), because they would be classified into temporary residence before the owners moved to a more permanent home.

According to the president, the funds for constructing the very cheapest houses could come from related state enterprises, corporate social responsibility funds, and those allocated from the government budget. The construction of the most inexpensive houses is one of six new programs, proposed by the president.