Jakarta. Dozens of senior property figures from the Real Estate Indonesia Advisory Council (BPO-REI) recently convened in Jakarta to discuss key industry challenges and expressed unified support for the government’s target of 8 percent economic growth.

The meeting, attended by 37 veteran REI members, took place at the residence of REI Honorary Chairman MS Hidayat on October 29, where participants voiced their support for the current REI leadership and shared recommendations on licensing bottlenecks, market recovery, and consumer purchasing power.

“It has been a long time since we met like this. We discussed government policies, the property market amid weakening consumer demand, and provided input for REI’s leadership. Such meetings will be held every five months to ensure continuous constructive feedback for policymakers,” said Hidayat, who served as REI Chairman (1989–1992) and Industry Minister (2009–2014).

Hidayat reaffirmed that REI’s senior members were committed to helping achieve the government’s ambitious 8 percent growth goal under President Prabowo Subianto’s administration, emphasizing that the property sector remains a vital growth engine, supporting more than 185 related industries across the real economy.

BPO-REI Chairman Paulus Totok Lusida outlined several recent government measures -- including the 3 million homes program, the extension of the property VAT exemption until 2027, the increase of subsidized housing quotas to 350,000 units in 2025, and the elimination of BPHTB (land and building acquisition tax) and PBG (building approval fees) for low-income housing.

“Beyond helping low-income families, we’re also advocating incentives for middle-income buyers -- homes priced up to Rp 500 million ($30,000) -- by proposing commercial-interest mortgages exempt from VAT. We hope this will be approved through a presidential regulation,” Totok said.

He also raised the issue of balanced housing regulations, which require developers to build affordable, mid-range, and luxury housing within the same project area. Several alternative schemes were discussed, including conversion payments and provincial-level balancing quotas, though Totok acknowledged that revising existing laws would not be easy.

The meeting also addressed the sluggish apartment market, where high service charges have dampened demand. Participants proposed capping fees for apartments priced below Rp 1 billion ($60,000) at around Rp 12,000 per square meter to make ownership more affordable.

“The goal is to encourage more people to buy and live in apartments. We hope there will be a solution to the service-charge issue for lower-middle-class housing,” Totok said.

Senior REI member Soelaeman Soemawinata agreed that high living costs in apartments -- including commercial tariffs for electricity and water -- have discouraged buyers.

“It’s unfair that apartment utilities are charged at commercial rates. These should be converted to residential tariffs,” he said, adding that revitalizing the apartment market could also ease traffic congestion and fuel consumption in major cities.

BPO-REI member Adrianto Adhi raised concern over the Agrarian Ministry’s plan to restrict the conversion of agricultural land for property development. He warned that Agrarian Minister Nusron Wahid’s policy -- basing land status on physical condition rather than zoning -- could create serious uncertainty.

“If land is still physically classified as rice fields, it can’t be repurposed for real estate. This poses a major challenge for developers,” Adrianto said.

Hidayat responded that, as a public official, the minister must remain bound by existing laws.

“All decisions carry legal consequences, so policies must comply with prevailing legislation,” he said.

Prominent industry leaders James Riady and Sugianto Kusuma (Aguan) also encouraged REI members to support government housing programs, including low-interest housing loans worth Rp 130 trillion ($7.8 billion) allocated for 2025.

“This Rp 130 trillion fund must be fully utilized by REI members,” James said.

Aguan added that REI should also assist with nationwide home renovation programs, helping low-income households improve unsafe living conditions.

Other senior figures attending included Siswono Yudo Husodo, Suharso Monoarfa, Yan Mogi, Agusman Effendi, Setyo Maharso, Eddy Hussy, Alex Tedja, Nanda Widya, and Herman Sudarsono -- signaling unified industry support for the government’s housing and economic revitalization agenda.