Jakarta. Joko Suranto, Chairman of the Indonesian Real Estate Association (REI), estimates that President Prabowo Subianto’s 3-million-house initiative will boost national economic growth by 0.5 percent and create up to 12 million jobs, promoting income distribution and addressing the housing shortage.

"The absorption of labor will distribute income, creating a significant multiplier effect across hundreds of industries in the downstream sector," Joko said on Tuesday.

He highlighted the large impact of the housing sector, which he estimates can employ 14 to 17 million workers and drive growth in 185 related industries. "Building 1 million houses can create 4 million jobs. With 3 million houses, we’re looking at 12 million jobs," he added.

Joko views this initiative as a new epicenter for economic growth, providing benefits in labor absorption, income distribution, stunting reduction, poverty alleviation, and increased purchasing power.

This program is also expected to help reduce Indonesia’s housing backlog, which currently stands at 12.3 million units and has persisted for over a decade.

President Prabowo Subianto has an ambitious goal of building 2 million houses in Indonesian villages each year. The former army general also wants to build 1 million apartment units in cities annually.