Housing as an asset produces housing service for the future. Moreover, the fundamental price of housing is equal to the present value of future housing service stream. If we attach importance to the asset aspect of housing, it seems natural to ask whether we can extract a signal or guide to future price developments from the movement of asset prices.
Further description of the journey of Indonesia’s economy in 2014 has been prepared in a 2014 Indonesia Economy Report book (LPI), which you all will receive at the end of this event. 35. We invite all of you to thoroughly observe the contents of the book, which is the eminent regular publication of Bank Indonesia.