Below is a list with tagged columns and company profiles.

Today's Headlines Houses

  • Property in Indonesia: Government Revises Luxury Goods Tax

    Property in Indonesia: Government Revises Luxury Goods Tax

    The Indonesian government has revised its luxury goods tax policy (in Indonesia known as PPnBM) for (luxury) property. Previously, apartments with a selling price of at least IDR 10 billion (approx. USD $700,000) and houses with a selling price of at least IDR 20 billion (approx. USD $1.4 million) were subject to a 20 percent luxury goods tax. The latest revision has now raised the minimum price of the property to IDR 30 billion (approx. USD $2.1 million) for all types of property.

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  • Housing Backlog Indonesia to Fall to 6.8 Million Units by 2019?

    Housing Backlog Indonesia to Fall to 6.8 Million Units by 2019?

    The government of Indonesia may succesfully curb the nation's housing backlog figure to 6.8 million units by 2019. Providing adequate housing for the poorer segments of Indonesian society is one of the key tasks of the Indonesian government (for example through its 'one million houses' [per year] program). In 2015 Indonesia's housing backlog declined by 16 percent (y/y) to 11.4 million units according to the data from Indonesia's Statistics Agency (BPS). With enough effort of the government and private sector the figure should continue to drop in the foreseeable future.

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  • Bank Indonesia Studies Relaxation of Loan-to-Value Ratio in Property Sector

    Bank Indonesia Studies Relaxation of Loan-to-Value Ratio in Property Sector

    Bank Indonesia, the central bank of Indonesia, is studying whether it should relax the loan-to-value (LTV) ratio for the purchase of a house through the house ownership credit scheme (in Indonesian: kredit pemilikan rumah, abbreviated KPR). Furthermore, Bank Indonesia may allow the KPR scheme for the purchase of a second house that is still under construction. These measures would be efforts to boost credit growth, particularly in the property sector, and boost overall economic activity in Indonesia.

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  • Indonesia's House Ownership Credit (Kredit Pemilikan Rumah) to Grow in 2016

    Indonesia's House Ownership Credit (Kredit Pemilikan Rumah) to Grow in 2016

    Indonesia's banking sector expects that House Ownership Credit (Kredit Pemilikan Rumah, abbreviated KPR) will grow strongly in 2016 as Indonesian people's purchasing power and consumer confidence is estimated to improve amid accelerated economic growth. The majority of home buyers in Indonesia use KPR from a financial institution to finance the purchase of a house. However, interest rates on KPR are high and therefore a burden for many property buyers (although the government provides subsidy for the low-income group that uses KPR to finance a first-time property purchase).

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  • New Regulation: Foreigners Can Own Landed Houses in Indonesia

    New Regulation: Foreigners Can Own Landed Houses in Indonesia

    Indonesia's Cabinet Secretary announced on Tuesday (12/01) that Indonesian President Joko Widodo signed a government regulation on 22 December 2015 (Government Regulation No. 103/2015 on House Ownership of Foreigners Residing in Indonesia) that allows foreigners to own landed houses in Indonesia for a period up to 80 years. This regulation is designed by the Indonesian government in order to provide more legal certainty to foreigners regarding property ownership.

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  • AkzoNobel Targets Indonesia as New Growth Market

    AkzoNobel Targets Indonesia as New Growth Market

    AkzoNobel, the Dutch multinational that is primarily engaged in the fields of decorative paints, performance coatings and specialty chemicals, stated that it has shifted its focus from China to Southeast Asia, particularly Indonesia and Vietnam. Ton Buchner, Chief Executive Officer of AkzoNobel, said growth in China has lost its decade-long momentum and thus AkzoNobel will reduce investment realization in China and instead focus on new growth markets in Southeast Asia.

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  • Impact of Higher Subsidized Fuel Prices on Indonesia’s Property Sector

    The Indonesia Property Watch (IPW) expects that property prices in Indonesia will rise in early 2015 as a result of the recent subsided fuel price hike. On 18 November 2014, the Indonesian government raised prices of subsidized low-octane gasoline and diesel by more than 30 percent in an effort to create more fiscal room for economic and social development. The central bank responded to this move by raising its key interest rate (BI rate) by 25 basis points to 7.75 percent in an attempt to combat accelerated inflation.

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  • Joko Widodo Suggests to Allow Foreigners to Buy Property in Indonesia

    Joko Widodo Suggests to Allow Foreigners to Buy Property in Indonesia

    Indonesian presidential candidate Joko Widodo, more popularly known as Jokowi, intends to increase the government’s tax revenue by allowing foreigners to buy luxury apartments, worth at least IDR 2.5 billion (approximately USD $211,864), in the larger cities of Indonesia and on the island of Bali (a popular tourist destination). Currently, foreigners cannot buy property in Indonesia. However, indirect structures, such as the use of their Indonesian wife’s name or an agent are common, meaning that the state loses out on luxury tax income.

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  • Growth of Residential Property Prices in Indonesia Still Slowing in Q1-2014

    The Residential Property Price Survey still indicates slowing growth of Indonesian residential property prices (in the primary market) in the first quarter of 2014. The Residential Property Price Index grew 1.45 percent (quarter to quarter) in the first quarter of 2014 or 7.92 percent year-on-year, lower than the growth that was recorded in the previous quarter of 1.77 percent (qtq) or 11.51 percent (yoy). The slowdown occurred in all types of homes, but in particular the medium and large homes segment.

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  • Metropolitan Land: a Residential and Commercial Property Developer

    Metropolitan Land: a Residential and Commercial Property Developer

    A preliminary company profile of Metropolitan Land (MTLA) has been added to our Indonesian Companies' section. The company is an Indonesian-based real estate and property developer that focuses on residential and commercial property for Indonesia's middle-low, middle and middle-up segments of Jakarta and the areas around Jakarta that are characterized by high population growth rates. The company's real estate development includes residential houses, shop houses, condominiums, hotels, shopping malls as well as sport centers.

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Latest Columns Houses

  • Foreigners Can Buy Property in Indonesia, But Will They?

    Foreigners Can Buy Property in Indonesia, But Will They?

    Indonesia opened the property market to those foreigners who reside (legally) in Indonesia. However, it also set tough requirements regarding foreign ownership of Indonesian property. Moreover, it remains nearly impossible for expats to obtain a local mortgage to finance the purchase of property. Although local credit may actually not be attractive for foreigners as interest rates are high in Indonesia, it is interesting to take a closer look at why Indonesian banks reject to sell mortgages to foreigners and whether foreigners are actually enticed to buy property in Indonesia?

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  • Foreign Ownership Landed Houses & Apartments in Indonesia (Update)

    Foreign Ownership Landed Houses & Apartments in Indonesia (Update)

    Foreigners (expats) can buy a landed house or apartment in Indonesia (under the so-called 'right-of-use' category, locally known as hak pakai, which is weaker than the ‘right-of-ownership’ category or hak milik). However, the government set various requirements (including a minimum price). A new regulation stipulates a foreigner is not allowed to rent out his Indonesian property to other parties (authorities have the right to scrap the foreigner's 'right-of-use' title if he breaches this prohibition). Ferry Mursyidan Baldan, Indonesia's Agrarian and Spatial Planning Minister, provided an update on the issue of 'foreign property ownership in Indonesia'.

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  • Buying a House in Indonesia Made Easier as BI Supports Economic Growth

    Buying a House in Indonesia Made Easier as BI Supports Economic Growth

    Soon it will be made easier to buy property in Indonesia as the country’s central bank (Bank Indonesia) plans to ease down payment (DP) requirements for mortgages. Today (22/05), Bank Indonesia Governor Agus Martowardojo told reporters that the DP obligation for first-home buyers will be lowered from 30 percent to 20 percent of the property’s value. This relaxation should have a positive effect on the performance of Indonesia’s financial institutions and property developers as demand for loans and property is assumed to grow.

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  • Joko Widodo to Launch Indonesia’s One Million Houses Program in April

    Joko Widodo to Launch Indonesia’s One Million Houses Program

    One of the ambitious targets of the Indonesian government is the realization of the “One Million Houses Program”. Through this program - scheduled to be launched on 30 April 2015 in Central Java by President Joko Widodo - the government aims to provide adequate housing facilities to low income citizens. Over half of these houses will be built using funds from the country’s state budget. State funds will also be used to finance the Housing Loan Liquidity Facility, government-backed mortgages for low-income people.

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  • Overview of the Booming Residential Property Sector of Indonesia

    Overview of the Booming Residential Property Sector of Indonesia

    Indonesia's residential property market has shown robust growth in recent years as demand from the country's rapidly expanding middle class for mid-level and luxury property increased steadily amid a low interest rate environment and robust national economic growth. Demand for property is also backed by high consumer confidence as a recent Nielsen survey shows that Indonesians are among the world's most confident consumers. Indonesians' consumer confidence was at a four-year high in the fourth quarter of 2013.

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  • Bank Indonesia Amends LTV/FTV Ratio to Safeguard Financial Stability

    Bank Indonesia amended its regulation concerning the Loan To Value (LTV) and Financing To Value (FTV) ratio for property credit and property-backed consumer loans. The LTV/FTV ratio is the ratio between the value of credit/financing that can be allocated by a bank and the corresponding value of collateral in the form of property when the loan is allocated. Property is real property that includes houses, vertical housing (apartments, flats, condominiums and penthouses), home offices and home stores.

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  • Bank Indonesia Plans New Rule to Avert Possible Property Bubble

    Bank Indonesia Plans New Rule to Avert Possible Property Bubble

    In order to avert a potential bubble in Indonesia's property sector, Bank Indonesia (the central bank of Indonesia) is planning to further tighten its monetary policy in the sector. After having raised the minimum down payment requirement on housing loans to 30 percent for first home ownership (thus a loan-to-value ratio of 70 percent) in June 2012, Bank Indonesia now intends to prohibit credits for the purchase of a second, third (or more) house that has not been built yet (still in the preconstruction phase). This new rule is expected to be introduced this month.

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