By: Nur ANiisa )*
The revival of the national property sector is beginning to show a clearer direction, coupled with strengthening economic indicators and consistent government policies. Therefore, 2026 is seen as a crucial year to restore this industry’s strategic role as a driver of growth and equitable prosperity. After a prolonged period of pressure, optimism is slowly growing that the property sector will once again become an economic powerhouse and a pillar of the national housing program, oriented towards the needs of the people.
The Housing Task Force assesses that the economic recovery that began to be felt in late 2025 is the main foundation for a property revival. Housing Task Force member Panangian Simanungkalit views the improvement in economic conditions in the fourth quarter of 2025 as a strong signal that the lowest phase has passed. He believes this recovery opens up room to accelerate the Three Million Homes Program, a key agenda of the administration of President Prabowo Subianto and Vice President Gibran Rakabuming Raka, particularly to address the need for adequate housing for low- and middle-income communities.
The relationship between economic growth and property is linear and mutually reinforcing. When the economy improves, the property sector almost always follows at a higher rate. Although public purchasing power has not yet fully recovered, the economic recovery trend is expected to continue throughout 2026, supported by macroeconomic stability, adaptive fiscal policy, and lower interest rates that create space for housing financing.
The property industry has experienced a prolonged slowdown over the past decade. Average national economic growth from 2014 to 2024 was around 4 percent, with the COVID-19 pandemic being the main depressing factor. However, the situation began to reverse at the end of 2025, when fourth-quarter economic growth reached 5.45 percent, an increase from 5.04 percent in the previous quarter. This trend is seen as a strong indication that the economic recovery has entered a more stable phase.
The next challenge is no longer escaping pressure, but rather maintaining momentum for sustainable growth. Government policies to create a conducive business climate are considered crucial. Assuming the economy grows in the range of 5.4 to 5.6 percent in 2026, the property sector has the potential to record more aggressive growth. Based on the concept of growth elasticity, property generally grows 1.5 to 1.7 times faster than the economy as a whole, so the opportunity for growth above 8 percent, or even approaching double digits, is wide open.
The government is seen as not standing still in maintaining the recovery momentum. The extension of the 100% Government-Paid Value Added Tax policy is a key instrument to stimulate demand, particularly in the residential segment. Furthermore, dialogue between the government and developers continues to be open to ensure that policies are formulated in line with on-the-ground conditions. This intensive communication is crucial for ensuring that the stimulus provided is truly effective and well-targeted.
In terms of governance, the Ministry of Housing and Settlements (PKP) affirmed its commitment to prioritizing a data-driven approach and cross-sector synergy. It ensured that every housing program and assistance program is designed with the principles of accountability and transparency, ensuring that the government’s presence is truly felt by the public. Monitoring and balance mechanisms must be in place to ensure that every rupiah of the budget is accounted for and produces a tangible impact.
The importance of developing subsidized flats as an affordable housing solution, particularly in urban areas with limited land, is emphasized. This effort is seen as a strategic step to address increasing urbanization while ensuring that low-income groups are not excluded from access to adequate housing. This policy is expected to become a key pillar of the national housing strategy towards 2026.
The past year has demonstrated concrete achievements that reinforce this optimism. Within the available budget, the housing program has achieved over 96 percent completion by 2025. The Self-Help Housing Stimulus Assistance Program has seen significant growth, construction of flats and special housing continues, and improvements to infrastructure, facilities, and utilities, including sanitation and slum management, have reached thousands of locations across various regions. These achievements reflect the government’s commitment to policy implementation and demonstrate that housing remains a national development priority.
The private sector’s contribution also strengthens the recovery ecosystem. Through corporate social responsibility programs, thousands of housing units have been successfully built as a manifestation of mutual cooperation between the business community. This collaboration is seen as concrete evidence that the property sector’s recovery relies not solely on the government but also on the active participation of business actors. This synergy is seen as crucial social capital for facing future challenges.
From a data and statistics perspective, the Central Statistics Agency (BPS) considers the data-driven approach implemented by the Ministry of PKP to be a step forward in policy formulation. Few ministries utilize data as the primary foundation for flagship programs. This approach is considered capable of ensuring that housing policies are truly relevant to community needs and have a measurable impact.
Ultimately, the property revival is not just about growth figures, but about how policies can provide decent, affordable, and sustainable housing for all levels of society. The government, business sector, and the public need to maintain this momentum through collaboration and joint oversight, so that the strategic policies designed not only revive the industry but also strengthen social justice and the quality of life for the people heading into 2026 and beyond.
)* The author is an Economic Literacy Activist