As the Indonesian central bank cut interest rate by 50 basis points to 11.75 percent, the country's property sector will benefit from the policy, chairman of the Indonesian Real Estate Lukman Purnomo Sidi said in Jakarta Tuesday.

"The decrease of interest rate by 50 basis point is an injection for the property sector to grow rapidly," he said.

The chairman said the sector targeted a 15 percent growth of establishment houses by year end from 100,000 units last year.

He said the 18 percent interest rate for credit in construction was too high, adding that 14 percent would be an appropriate figure.

High central bank benchmark interest rate is widely blamed for preventing bank credits into businesses and soaring interest on bank loans, which in turn discouraged markets in credit-backed businesses such as automotive sales and property.

Source: Xinhua