Energetic analysis of various production systems in West Javan agricultural landscape: looking for sustainable system | Indonesia Research Intitute Japan
Energetic analysis of various production systems in West Javan agricultural landscape: looking for sustainable system
Muhamad, Dendi1); Parikesit2); Okubo, Satoru3)
1) Institute of Ecology, Padjadjaran University Jalan Sekeloa Selatan 1, Bandung, 40132, West Java, Indonesia e-mail: dendi@unpad.ac.id; zo_den@yahoo.com 2) Departmen of Biology, Institute of Ecology, Padjadjaran University Jalan Sekeloa Selatan 1, Bandung, 40132, West Java, Indonesia. e-mail: 2) parikesit@unpad.ac.id; 3) Department of Ecosystem Studies, Graduate School of Agricultural and Life Sciences, The University of Tokyo. Yayoi 1-1-1, Bunkyo-ku, Tokyo 113-8657, Japan e-mail: aokubos@mail.ecc.u-tokyo.ac.jp
Abstract
To indicate the sustainability of agricultural landscape from its energy efficiency, energtic analysis study of various producion system was carried out in a village, West Java. Data were collected using questionnaires and direct measurements. We analyzed the energy efficiency of each system and interactions among them through energy flows, and evaluated the dependency of all systems on internal and external energy in the agricultural landscape. Regardless of important role of local resources, much amount of external materials such as inorganic fertilizers and pesticides were used in most ricefields accounted for 46
% of total inputs. The systems, thus, had low efficiency about 2.78 and depended on external inputs from outside of the agricultural landscape. On the contrary, in bamboo tree gardens and mix tree gardens, use of external materials such as pesticide and chemical fertilizer was significantly small (no more than 20 % of total inputs), particularly in bamboo tree gardens (about 4 % of total inputs). Both tree gardens had higher energy efficiency (bamboo tree garden: 28,89 and mix tree garden: 19.41) and lower external dependency than ricefield systems. In kebun-talun system, which is an unique rotation system of bamboo tree garden and “kebun” or upland field, dependency on external inputs was intermediate (38 % of total inputs) compared to ricefield, bamboo tree garden and mix tree garden since farmers used external materials only in kebun phase where the amount was still lower than ricefield. Regarding energy efficiency which is about 20.74, the system was smaller than bamboo but higher than mix tree garden and much higher than rice fields. There was relation among the four systems in terms of energy flow. To increase the sustainability by reduce high dependency on external inputs in ricefields, a new energy flow retrieved from tree gardens should be considered.
Key Words:external dependency; sustainability, input-output; kebun-talun; energy efficiency.
Introduction
To study the agricultural production systems efficiency as an indicator of agricultural landscape sustainability, energy analysis in various production systems was carried out in a rural area, West Java. The village is located in a fringe area of Bandung City which is a rural area in a mosaic of urban-rural landscape. Thus, the village also one of typical agricultural landscape that consist of divers production systems, namely rice fields, upland fields, bamboo tree gardens (bamboo-taluns), mix tree gardens (taluns), and kebun-talun system. The energy base analysis was choose due to the fact that all the materials which used in agricultural production systems basically came from sunlight energy that had been converted to chemical substances (food) by the plants (Pimentel et al., 1983). In other words, energy is essential for accomplishing any works, without energy no action or process could occur and therefore no goods or services could be produce. These means that using energy base analysis, efficiency in different agricultural production systems could be compared and analyzed. Then, Base on
Fluck (1992) and Ramakrishnan (1990) perspective, the most useful approach in energy analysis to determine energy efficiency is to combine energy flow and input-output analysis. Then, from the energy efficiency the system’s sustainability could indicated.
There are three main objectives in this research. First, is to know and understand interaction among production systems which form an energy flow in agricultural landscape. Second, is to analyze the energy input-output of each production systems. The last, is to compare energy efficiency among different production systems, which one has is the most efficient in term of energy to indicate its sustainability.
In order to evaluate energy efficiency of different agriculture production systems, a research framework was established. Basically, energy analysis in this research begin by choose a boundary (Fluck, 1992). Agricultural landscape of the study site was imagined as an ecosystem that has boundary. The boundary was an imaginary line around the administrative boundary of the research site village. This imaginary boundary was used in order to distinguish between local (internal) and external, so there would be inputs which were used and there would also be outputs which were resulted by the components inside the systems. Then, as a system, the agricultural landscape was consisting of several components (production systems) and between this components that would be interaction that form energy flows. In this energy analysis the inputs for an agricultural production system were typically identified and quantified. Then, the energy to provide the inputs were determined and summed, and compared with the output, as energy ratio (Fluck, 1992; Leach, 1976; Pimentel, 1980, Pimentel et al., 1983). This ratio of energy outputs per inputs was used to state the agricultural production system efficiency in order to indicate its sustainability.
Materials and methods
Data about input and output of each production system were collected using questionnaires and direct measurements. Base on preliminary survey and land ownership census, numbers of households in Karamat Mulya village were randomly selected using the formula from Lynch et al. (1974).
N.Z2 .P(1-P)
n =
N.d² + Z².P(1-P)
n = Number of sample (selected households) N = Number of population
Z = Value of normal variable (1,96)
P = Proportion of highest possibility (0,50) d = Error sampling (0,10)
Base on the formula, the selected households consist of: 72 house hold own ricefield, 23 house hold own upland field, 44 house hold own bamboo talun, 40 house hold own mix talun, and 48 house hold own talun which still conducted kebun-talun systems in last five years were selected to be interviewed using questioner. The aspects included in the questionnaires were: household profile; type(s) of energy used by households; type(s) of energy used as inputs by households in their agricultural production systems; source, mode of procurement, and usage quantity; type(s) of energy which were outputs from their agricultural production systems; usage (subsistence or to be sold); usage quantity and selling destination; and accessibility to exports the outputs destination; management intensity, and management of agricultural residues).
After all of the data were collected, then convert this input and output data in to energy base unit per area size per time unit. Researches which was used as reference for the energy conversion factors in this research are: Leach (1976), Cox and Atkins (1979), de Wit (1979) Mitchell (1979), Cervinka (1980), Pimentel (1980), Ruthenberg (1980), Fluck and
Baird (1980); Doering (1980), Lockeretz (1980), Rutger and Grant (1980), Kuether and Duff
(1981), Uhl and Murphy (1981), Freedman (1982), Dazhong & Pimentel (1984; 1990), Han et
- (1985), Christanty (1989), Gajaseni (1994), Nguyen and Hynes (1994), Singh and Behl (1999), Sundkvist, et al. (1999). The data presented in this study were analyzed using Statistical Package for Social Sciences (SPSS version 11.0) Software. The analysis includes frequency, correlation between variables, and cross tabulation.
Results and discussion
The study site, Karamat Mulya Village, Soreang District, West Java, is located a fringe area of Bandung City (West Java Province city capital). Karamat Mulya village is a rural area in a mosaic of urban-rural landscape of Bandung Metropolitan. The village is located in elevation 700 – 1200 meter above sea level. In general, the topography of the study site is undulating hilly area to flat area. The landscape consists of several components, tree garden (talun) areas (consist of kebun-talun, bamboo talun, and mix talun) located in the hill area and rice field and upland field in more relative flat area until flat area. The village located around (±) 23km south west from Bandung (Picture 1).
The results from this research are illustrated in Picture 2, which is the quantified energy flow among agriculture production systems in the study site’s agricultural landscape. As can be seen from the picture there are many interactions between the agricultural production systems.
From the quantified energy flow (picture 2), it could be clarified that there are interaction among the four systems in terms of energy flow, however, it was small portion: it was rare case to use organic materials derived from taluns in ricefields, even though there are energy flow in form of run-off and falling leaf (litter) which brought by the wind or rain from he taluns (on the steep and upper area) to ricefieds (on the gentle and lower area) (which is appeared as the dash line on Picture 2).
Base on the energy flow which shown in Picture 2, an energy input-ouput matrix was made (Table 1). Then, from the input-output matrix energy efficiency of each agricultural production system could be calculated (Table 2).
Table 1. Energy Input-output Matrix of different agricultural production systems in Karamatmulya Village’s Agricultural Landscape (MJ ha-1 year-1)
Table 2. Energy Efficiency of different agricultural production systems in Karamatmulya Village’s Agricultural Landscape (MJ ha-1 year-1)
Regardless of important role of local resources, much amount of external materials such as inorganic fertilizers, pesticides and tools were used in most rice fields and upland fields (kebun phase in kebun-talun system) accounted for arround 45 % to 50% of total inputs. The ricefield systems, thus, had low efficiency about 2.8 and depended on external inputs from outside of the village. Even though, the ricefield energy efficiency in the research site is still higher compare to ricefield that used diesel in Madras, India (energy efficiency: 1.7) and ricefield that used machinery in Thailand (energy efficiency: 0.3) (Gajaseni, 1994; and Norman, 1977). On the other hand, if it was compare with traditional ricefield in Thailand, the efficiency is almost same, which is 2.7.
On the contrary, in bamboo tree gardens (bamboo taluns) and mix tree gardens (mix taluns), use of external materials was significantly small (about 20 % of total inputs), particularly in bamboo taluns (arround 4 % of total inputs). Both taluns had higher energy efficiency (bamboo talun: 28.89 and mix talun: 19.41) and lower external dependency than annual crop production systems (ricefield and upland field).
In kebun-talun system, which is an unique rotation system of bamboo talun and kebun or upland field, dependency on external inputs was intermediate (about 38 % of total inputs) compared to annual and perennial tree crop production systems since farmers used external materials only in kebun phase where the amount was still lower than ricefields. Regarding energy efficiency which is about 20.74, the system was smaller than bamboo talun but higher than mix talun and much higher than ricefields.
The efficiency of kebun-talun system in the research site is not so different with shifting cultivation system which has five to ten years rotation in India (Maikhuri, 1994). According to his reseach findings, the eficiency of shifting cultivation system was decreasing due to the shorten periode of rotation. So its efficiency from highest to lowest are arround 16,4 to 36,1 as the rotation periode increased. Thus, could be infere that the kebun-talun system efficency is still between the interval of shifting cultivation system’s efficency in India. In other words, the talun system, especially the kebun-talun system in the research site are under good condition.
It was clarified that although tree gardens (taluns), which were dominant agricultural land-use, had high energy efficiency, its contribution to the production systems of ricefields was low (less than 10 %). To reduce high dependency on external inputs in ricefields, a new energy flow retrieved from taluns should be considered in landscape-based sustainability.
Conclusions
- There are interaction among the four systems (ricefield, kebun-talun, bamboo tree garden, mix tree garden) in terms of energy flow, however, it was small portion.
- Base on partial analysis of each producton system, it could be clarified (in term of energy base unit) :
- Ricefield : have the highest yield productivity but have the highest dependency to external inputs and the lowest energy efficiency.
- Bamboo tree garden: have the lowest yield productivity but have the lowest dependency to external inputs and the highest energy efficency
- Mix tree garden: have intermediate yield productivity and high dependency to external inputs with intermediate energy efficiency
- Kebun-Talun: have high yield productivity and intermediate dependency with high energy efficiency
In order to established a more sustainable agricultural landscape, the four production system (mentioned above) should be maintained and integrated.
In order to increase the sustainability, the high dependency on external inputs (particularly in ricefields) should be decreased, a new energy flow retrieved from tree gardens should be considered.
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Authored by : Fitri Aulia | 22 December 2020
Recent Property Development
The Covid-19 pandemic has dealt a quite severe blow to the property business sector in 2020. During the PSBB period, business activities were very sluggish and it can be said that some business actors suffered severe losses.
However, entering the new normal period, the economic activity in several sectors including property has begun to revive from the previous period. The role of the government triggers the revival of Indonesia’s property business activities.
Government Stimulus
The assistance provided by the government is in the form of subsidies or incentives for interest subsidies to debtors of public housing credit (KPR), which is contained in the Minister of Finance Regulation (PMK) Number 138 / PMK.05 / 2020 and amendments to PMK 85 / PMK.05 / 2020 regarding the guidelines for providing interest subsidies in the effort to implement the National Economic Recovery program.
In early March 2020, the Government decided to increase the allocation of housing financing assistance by IDR 1.5 trillion for Low-Income Communities (MBR). This was stated by the Director General of Infrastructure Financing of the Ministry of Public Works and Public Housing (PUPR) Eko Djoeli Heripoerwanto in a webinar, Wednesday (29/7/2020).
In addition, the Government also has Bank BTN as their partner-collaboration to implement their OMH Program aimed at Low-Income Communities (MBR) with low interest rates and low installments for the purchase of a prosperous tread house and a welfare apartment.
Bank BTN noted, in 2015 they have provided housing financing assistance totaling 474,099 units. Then in 2016 as many as 595,540 units, in 2017 to 666,806 units, in 2018 to 755,093 units, and in 2019 to 735,749 units.
As of September 2020, BTN has provided home ownership credit support (KPR) of 93,448 units which cost as much as Rp. 15.6 trillion. These support provided by BTN is significant for the survival of the business property sector.
BTN commitment on supporting business property has not slackened. In fact, during the pandemic, BTN continuously provides support for the government program.The distribution of subsidized KPR is still a mainstay of BTN for the One Million Houses program.
Source : Bank BTN (visit : https://www.btn.co.id/id/Conventional/Product-Links/Produk-BTN/Kredit-Konsumer/Pinjaman-Bangunan/KPR-BTN-Subsidi)
Positive Trend in Q3 2020
There is a positive trend during Q3 2020 after it drastically dropped earlier in the year, indicates there is potential for the revival of Commercial Property Demand in Q4 2020 and the next Q1 2021.
Source : Bank Indonesia
Hotels and convention halls are two sectors whose demand has risen quite drastically in the Q3 after falling badly in the previous quarter. This demonstrates positive potential for its development in the future. Meanwhile, the demand of apartment remains low and still struggles to revive until now.
Growth of Commercial Property Demand in Jabodetabek
Overall in Jabodetabek, the commercial property sector also experienced a positive increase during Q3 2020.
In Jakarta, all commercial property demands show positivism with hotels being the most prominent in their development at Q3 2020. After previously shows a negative number, the total index in Q3 has at least increased to be positive.
Source : Bank Indonesia
Meanwhile, the growth in the total commercial property index jumped drastically in Bogor, Depok and Bekasi. Same case with Jakarta, its hotel sector are also the most prominent in reviving, at least in the Q3 2020.
Source : Bank Indonesia
As we can see on charts above, the hotel segment shows a great improvement in demand. This was driven by various kinds of promotions offered by hotels to adapt in this situation such as providing huge discount, staycation packages, working from hotels offer, and wedding reception packages.
Why Hotels?
As Indonesia gradually eases lockdown restrictions, the hotel occupancy rates across the country including Jakarta, have slowly started to pick up. However this is not without several efforts and sacrifices driven by people in the hotels sector to improve and revive the hospitality business sector in Indonesia.
To get through this hard times, efficiency and innovation are the main keys. Therefore, there are several trends created specifically to adapt to this era. Hotels competing with each other to offer a flood of discounts. To further intensify its sales strategy, there are several e-commerce platforms that is becoming a great place to advertise rooms and staycation packages, such as Traveloka. The Buy Now Stay Later also sticks to this trend.
Hotels discounts on Traveloka (Source : Traveloka)
Another new trend is the Work From Hotel (WFH). As you might know, the abbreviation of WFH was initially stands for Work From Home. To connect the dots, Working From Hotel then exist and created because there are more and more office workers are getting bored with the atmosphere of their house and desperate to look for a new atmosphere. It’s a trend where hotels prepare rooms, complete with equipment and facilities to work (e.g : Wi-Fi , stationer, and free printing facilities,etc).
Source : Instagram @harrisfxsudirman and @arunasenggigi
During the transitional PSBB period, indoor wedding receptions are allowed to be held again after previously was banned temporarily due to the massive increase of the Covid-19 spread. This becomes the opportunity that triggers the revival for the hotel business.
However, this permission is also accompanied by the requirement to fulfill and comply with the health protocols made by the government. These includes the limitation of attendees to a maximum of 25 percent of normal capacity. Then, the seating distance for visitors is set at least 1.5 meters. Visitors are also prohibited from passing by or changing seats. The eating and drinking utensils must be sterilized, while the serving of food is prohibited from using a buffet. Last but not least, the wedding staffs are required to wear a mask, face shield and gloves.
One of the breakthrough in this trend was the make of “Virtual Wedding” ever since June 2020. As this was the case held by The Sunan Hotel Solo, which offer a virtual wedding service package for 44.5 million. The event is only attended by the couple and their family members, meanwhile guests are able to attend the wedding virtually through various platforms such as Zoom, YouTube, Facebook and Instagram, while enjoying food sent by the hotel to their residences.
Source: The Sunan Hotels Solo
Finally, we might conclude that the property business in Indonesia has the potential to develop more despite the massive impact it has taken from pandemic outburst. Combining the stakeholders effort and the government’s support to stimulate this sector are expected to help revive the business sector in the future.
References
Bank Indonesia. (2020). Perkembangan Properti Komersial (PPKOM).
Kementerian Pekerjaan Umum dan Perumahan Rakyat. (2020, November 3). Tingkatkan Kepemilikan Hunian Layak, Realisasi Program Sejuta Rumah Hingga Akhir Oktober 2020 Capai 601.637 Unit. Retrieved from https://www.pu.go.id/berita/view/18970/tingkatkan-kepemilikan-hunian-layak-realisasi-program-sejuta-rumah-hingga-akhir-oktober-2020-capai-601-637-unit
Kementerian Pekerjaan Umum dan Perumahan Rakyat . (2020, January 3). Capaian Pembangunan Rumah Tembus 1,25 Juta Unit. Retrieved from https://perumahan.pu.go.id/berita/view/227/capaian-pembangunan-rumah-tembus-1-25-juta-unit
Kompas. (2020, July 29). Alokasi Tambahan Rp 1,5 Triliun untuk Perumahan Terkait 3 Program. Retrieved from https://properti.kompas.com/read/2020/07/29/191334021/alokasi-tambahan-rp-15-triliun-untuk-perumahan-terkait-3-program?page=all
BUMN inc. (2020). Target Penyaluran KPR Bank BTN Naik Menjadi 300.000 Unit Per Tahun. Retrieved from http://bumninc.com/target-penyaluran-kpr-bank-btn-naik-menjadi-300-000-unit-per-tahun/?more=2
Authored by : Fitri Aulia | 22 December 2020
Recent Property Development
The Covid-19 pandemic has dealt a quite severe blow to the property business sector in 2020. During the PSBB period, business activities were very sluggish and it can be said that some business actors suffered severe losses.
However, entering the new normal period, the economic activity in several sectors including property has begun to revive from the previous period. The role of the government triggers the revival of Indonesia’s property business activities.
Government Stimulus
The assistance provided by the government is in the form of subsidies or incentives for interest subsidies to debtors of public housing credit (KPR), which is contained in the Minister of Finance Regulation (PMK) Number 138 / PMK.05 / 2020 and amendments to PMK 85 / PMK.05 / 2020 regarding the guidelines for providing interest subsidies in the effort to implement the National Economic Recovery program.
In early March 2020, the Government decided to increase the allocation of housing financing assistance by IDR 1.5 trillion for Low-Income Communities (MBR). This was stated by the Director General of Infrastructure Financing of the Ministry of Public Works and Public Housing (PUPR) Eko Djoeli Heripoerwanto in a webinar, Wednesday (29/7/2020).
In addition, the Government also has Bank BTN as their partner-collaboration to implement their OMH Program aimed at Low-Income Communities (MBR) with low interest rates and low installments for the purchase of a prosperous tread house and a welfare apartment.
Bank BTN noted, in 2015 they have provided housing financing assistance totaling 474,099 units. Then in 2016 as many as 595,540 units, in 2017 to 666,806 units, in 2018 to 755,093 units, and in 2019 to 735,749 units.
As of September 2020, BTN has provided home ownership credit support (KPR) of 93,448 units which cost as much as Rp. 15.6 trillion. These support provided by BTN is significant for the survival of the business property sector.
BTN commitment on supporting business property has not slackened. In fact, during the pandemic, BTN continuously provides support for the government program.The distribution of subsidized KPR is still a mainstay of BTN for the One Million Houses program.
Source : Bank BTN (visit : https://www.btn.co.id/id/Conventional/Product-Links/Produk-BTN/Kredit-Konsumer/Pinjaman-Bangunan/KPR-BTN-Subsidi)
Positive Trend in Q3 2020
There is a positive trend during Q3 2020 after it drastically dropped earlier in the year, indicates there is potential for the revival of Commercial Property Demand in Q4 2020 and the next Q1 2021.
Source : Bank Indonesia
Hotels and convention halls are two sectors whose demand has risen quite drastically in the Q3 after falling badly in the previous quarter. This demonstrates positive potential for its development in the future. Meanwhile, the demand of apartment remains low and still struggles to revive until now.
Growth of Commercial Property Demand in Jabodetabek
Overall in Jabodetabek, the commercial property sector also experienced a positive increase during Q3 2020.
In Jakarta, all commercial property demands show positivism with hotels being the most prominent in their development at Q3 2020. After previously shows a negative number, the total index in Q3 has at least increased to be positive.
Source : Bank Indonesia
Meanwhile, the growth in the total commercial property index jumped drastically in Bogor, Depok and Bekasi. Same case with Jakarta, its hotel sector are also the most prominent in reviving, at least in the Q3 2020.
Source : Bank Indonesia
As we can see on charts above, the hotel segment shows a great improvement in demand. This was driven by various kinds of promotions offered by hotels to adapt in this situation such as providing huge discount, staycation packages, working from hotels offer, and wedding reception packages.
Why Hotels?
As Indonesia gradually eases lockdown restrictions, the hotel occupancy rates across the country including Jakarta, have slowly started to pick up. However this is not without several efforts and sacrifices driven by people in the hotels sector to improve and revive the hospitality business sector in Indonesia.
To get through this hard times, efficiency and innovation are the main keys. Therefore, there are several trends created specifically to adapt to this era. Hotels competing with each other to offer a flood of discounts. To further intensify its sales strategy, there are several e-commerce platforms that is becoming a great place to advertise rooms and staycation packages, such as Traveloka. The Buy Now Stay Later also sticks to this trend.
Hotels discounts on Traveloka (Source : Traveloka)
Another new trend is the Work From Hotel (WFH). As you might know, the abbreviation of WFH was initially stands for Work From Home. To connect the dots, Working From Hotel then exist and created because there are more and more office workers are getting bored with the atmosphere of their house and desperate to look for a new atmosphere. It’s a trend where hotels prepare rooms, complete with equipment and facilities to work (e.g : Wi-Fi , stationer, and free printing facilities,etc).
Source : Instagram @harrisfxsudirman and @arunasenggigi
During the transitional PSBB period, indoor wedding receptions are allowed to be held again after previously was banned temporarily due to the massive increase of the Covid-19 spread. This becomes the opportunity that triggers the revival for the hotel business.
However, this permission is also accompanied by the requirement to fulfill and comply with the health protocols made by the government. These includes the limitation of attendees to a maximum of 25 percent of normal capacity. Then, the seating distance for visitors is set at least 1.5 meters. Visitors are also prohibited from passing by or changing seats. The eating and drinking utensils must be sterilized, while the serving of food is prohibited from using a buffet. Last but not least, the wedding staffs are required to wear a mask, face shield and gloves.
One of the breakthrough in this trend was the make of “Virtual Wedding” ever since June 2020. As this was the case held by The Sunan Hotel Solo, which offer a virtual wedding service package for 44.5 million. The event is only attended by the couple and their family members, meanwhile guests are able to attend the wedding virtually through various platforms such as Zoom, YouTube, Facebook and Instagram, while enjoying food sent by the hotel to their residences.
Source: The Sunan Hotels Solo
Finally, we might conclude that the property business in Indonesia has the potential to develop more despite the massive impact it has taken from pandemic outburst. Combining the stakeholders effort and the government’s support to stimulate this sector are expected to help revive the business sector in the future.
References
Bank Indonesia. (2020). Perkembangan Properti Komersial (PPKOM).
Kementerian Pekerjaan Umum dan Perumahan Rakyat. (2020, November 3). Tingkatkan Kepemilikan Hunian Layak, Realisasi Program Sejuta Rumah Hingga Akhir Oktober 2020 Capai 601.637 Unit. Retrieved from https://www.pu.go.id/berita/view/18970/tingkatkan-kepemilikan-hunian-layak-realisasi-program-sejuta-rumah-hingga-akhir-oktober-2020-capai-601-637-unit
Kementerian Pekerjaan Umum dan Perumahan Rakyat . (2020, January 3). Capaian Pembangunan Rumah Tembus 1,25 Juta Unit. Retrieved from https://perumahan.pu.go.id/berita/view/227/capaian-pembangunan-rumah-tembus-1-25-juta-unit
Kompas. (2020, July 29). Alokasi Tambahan Rp 1,5 Triliun untuk Perumahan Terkait 3 Program. Retrieved from https://properti.kompas.com/read/2020/07/29/191334021/alokasi-tambahan-rp-15-triliun-untuk-perumahan-terkait-3-program?page=all
BUMN inc. (2020). Target Penyaluran KPR Bank BTN Naik Menjadi 300.000 Unit Per Tahun. Retrieved from http://bumninc.com/target-penyaluran-kpr-bank-btn-naik-menjadi-300-000-unit-per-tahun/?more=2
Authored by : Fitri Aulia | 22 December 2020
Recent Property Development
The Covid-19 pandemic has dealt a quite severe blow to the property business sector in 2020. During the PSBB period, business activities were very sluggish and it can be said that some business actors suffered severe losses.
However, entering the new normal period, the economic activity in several sectors including property has begun to revive from the previous period. The role of the government triggers the revival of Indonesia’s property business activities.
Government Stimulus
The assistance provided by the government is in the form of subsidies or incentives for interest subsidies to debtors of public housing credit (KPR), which is contained in the Minister of Finance Regulation (PMK) Number 138 / PMK.05 / 2020 and amendments to PMK 85 / PMK.05 / 2020 regarding the guidelines for providing interest subsidies in the effort to implement the National Economic Recovery program.
In early March 2020, the Government decided to increase the allocation of housing financing assistance by IDR 1.5 trillion for Low-Income Communities (MBR). This was stated by the Director General of Infrastructure Financing of the Ministry of Public Works and Public Housing (PUPR) Eko Djoeli Heripoerwanto in a webinar, Wednesday (29/7/2020).
In addition, the Government also has Bank BTN as their partner-collaboration to implement their OMH Program aimed at Low-Income Communities (MBR) with low interest rates and low installments for the purchase of a prosperous tread house and a welfare apartment.
Bank BTN noted, in 2015 they have provided housing financing assistance totaling 474,099 units. Then in 2016 as many as 595,540 units, in 2017 to 666,806 units, in 2018 to 755,093 units, and in 2019 to 735,749 units.
As of September 2020, BTN has provided home ownership credit support (KPR) of 93,448 units which cost as much as Rp. 15.6 trillion. These support provided by BTN is significant for the survival of the business property sector.
BTN commitment on supporting business property has not slackened. In fact, during the pandemic, BTN continuously provides support for the government program.The distribution of subsidized KPR is still a mainstay of BTN for the One Million Houses program.
Source : Bank BTN (visit : https://www.btn.co.id/id/Conventional/Product-Links/Produk-BTN/Kredit-Konsumer/Pinjaman-Bangunan/KPR-BTN-Subsidi)
Positive Trend in Q3 2020
There is a positive trend during Q3 2020 after it drastically dropped earlier in the year, indicates there is potential for the revival of Commercial Property Demand in Q4 2020 and the next Q1 2021.
Source : Bank Indonesia
Hotels and convention halls are two sectors whose demand has risen quite drastically in the Q3 after falling badly in the previous quarter. This demonstrates positive potential for its development in the future. Meanwhile, the demand of apartment remains low and still struggles to revive until now.
Growth of Commercial Property Demand in Jabodetabek
Overall in Jabodetabek, the commercial property sector also experienced a positive increase during Q3 2020.
In Jakarta, all commercial property demands show positivism with hotels being the most prominent in their development at Q3 2020. After previously shows a negative number, the total index in Q3 has at least increased to be positive.
Source : Bank Indonesia
Meanwhile, the growth in the total commercial property index jumped drastically in Bogor, Depok and Bekasi. Same case with Jakarta, its hotel sector are also the most prominent in reviving, at least in the Q3 2020.
Source : Bank Indonesia
As we can see on charts above, the hotel segment shows a great improvement in demand. This was driven by various kinds of promotions offered by hotels to adapt in this situation such as providing huge discount, staycation packages, working from hotels offer, and wedding reception packages.
Why Hotels?
As Indonesia gradually eases lockdown restrictions, the hotel occupancy rates across the country including Jakarta, have slowly started to pick up. However this is not without several efforts and sacrifices driven by people in the hotels sector to improve and revive the hospitality business sector in Indonesia.
To get through this hard times, efficiency and innovation are the main keys. Therefore, there are several trends created specifically to adapt to this era. Hotels competing with each other to offer a flood of discounts. To further intensify its sales strategy, there are several e-commerce platforms that is becoming a great place to advertise rooms and staycation packages, such as Traveloka. The Buy Now Stay Later also sticks to this trend.
Hotels discounts on Traveloka (Source : Traveloka)
Another new trend is the Work From Hotel (WFH). As you might know, the abbreviation of WFH was initially stands for Work From Home. To connect the dots, Working From Hotel then exist and created because there are more and more office workers are getting bored with the atmosphere of their house and desperate to look for a new atmosphere. It’s a trend where hotels prepare rooms, complete with equipment and facilities to work (e.g : Wi-Fi , stationer, and free printing facilities,etc).
Source : Instagram @harrisfxsudirman and @arunasenggigi
During the transitional PSBB period, indoor wedding receptions are allowed to be held again after previously was banned temporarily due to the massive increase of the Covid-19 spread. This becomes the opportunity that triggers the revival for the hotel business.
However, this permission is also accompanied by the requirement to fulfill and comply with the health protocols made by the government. These includes the limitation of attendees to a maximum of 25 percent of normal capacity. Then, the seating distance for visitors is set at least 1.5 meters. Visitors are also prohibited from passing by or changing seats. The eating and drinking utensils must be sterilized, while the serving of food is prohibited from using a buffet. Last but not least, the wedding staffs are required to wear a mask, face shield and gloves.
One of the breakthrough in this trend was the make of “Virtual Wedding” ever since June 2020. As this was the case held by The Sunan Hotel Solo, which offer a virtual wedding service package for 44.5 million. The event is only attended by the couple and their family members, meanwhile guests are able to attend the wedding virtually through various platforms such as Zoom, YouTube, Facebook and Instagram, while enjoying food sent by the hotel to their residences.
Source: The Sunan Hotels Solo
Finally, we might conclude that the property business in Indonesia has the potential to develop more despite the massive impact it has taken from pandemic outburst. Combining the stakeholders effort and the government’s support to stimulate this sector are expected to help revive the business sector in the future.
References
Bank Indonesia. (2020). Perkembangan Properti Komersial (PPKOM).
Kementerian Pekerjaan Umum dan Perumahan Rakyat. (2020, November 3). Tingkatkan Kepemilikan Hunian Layak, Realisasi Program Sejuta Rumah Hingga Akhir Oktober 2020 Capai 601.637 Unit. Retrieved from https://www.pu.go.id/berita/view/18970/tingkatkan-kepemilikan-hunian-layak-realisasi-program-sejuta-rumah-hingga-akhir-oktober-2020-capai-601-637-unit
Kementerian Pekerjaan Umum dan Perumahan Rakyat . (2020, January 3). Capaian Pembangunan Rumah Tembus 1,25 Juta Unit. Retrieved from https://perumahan.pu.go.id/berita/view/227/capaian-pembangunan-rumah-tembus-1-25-juta-unit
Kompas. (2020, July 29). Alokasi Tambahan Rp 1,5 Triliun untuk Perumahan Terkait 3 Program. Retrieved from https://properti.kompas.com/read/2020/07/29/191334021/alokasi-tambahan-rp-15-triliun-untuk-perumahan-terkait-3-program?page=all
BUMN inc. (2020). Target Penyaluran KPR Bank BTN Naik Menjadi 300.000 Unit Per Tahun. Retrieved from http://bumninc.com/target-penyaluran-kpr-bank-btn-naik-menjadi-300-000-unit-per-tahun/?more=2