Below is a list with tagged columns and company profiles.

Today's Headlines Property Development

  • Property Sector of Indonesia Subdued, Tax Amnesty to Impact?

    Property Sector of Indonesia Subdued, Tax Amnesty to Impact?

    After the ending of Indonesia's tax amnesty program, property players in Southeast Asia's largest economy remain optimistic that inflows of fresh funds - originating from the tax amnesty program - will give a boost to Indonesian property sector in the second half of 2017. This should then cause some momentum, meaning property developers dare to kick-start new projects. Considering weak demand for property in Indonesia over the past couple of years, many local property developers have been postponing projects.

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  • Indonesia Relaxing LTV; Demand for House Ownership Credit (KPR) to Grow?

    Indonesia Relaxing LTV; Demand for House Ownership Credit (KPR) to Grow?

    By relaxing the loan-to-value (LTV) ratio, the central bank of Indonesia (Bank Indonesia) expects to see House Ownership Credit (Kredit Pemilikan Rumah, abbreviated KPR) growth to accelerate by an additional 5 percent. Up to April 2016, KPR growth was recorded at 7.61 percent (y/y) only, down significantly from the years 2012-2013 when - amid the glory years of property development in Indonesia - KPR growth touched figures of between 30 - 49 percent (y/y). Back then concerns emerged whether Indonesia was about to experience a price bubble in the property sector.

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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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  • Optimism about Indonesia's Property Sector, despite Tax Amnesty Bill Delay

    Optimism about Indonesia's Property Sector, despite Tax Amnesty Bill Delay

    Stakeholders in Indonesia's property sector may regret to learn that Indonesia's House of Representatives (DPR) decided to postpone deliberations on the tax amnesty bill until (at least) April 2016. This tax amnesty bill, originally planned to be implemented in early 2016, offers attractive tax rates to those tax evaders who declare untaxed wealth and repatriate their funds to Indonesia. If implemented in early 2016, then the bill was estimated to generate up to USD $4.4 billion in additional tax revenue in 2016. Meanwhile, part of repatriated funds would find their way into the nation's property sector.

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  • Indonesia's Residential Property Sector Still in Slowdown-Mode

    Indonesia's Residential Property Sector Still in Slowdown-Mode

    The latest survey of Indonesia's central bank (Bank Indonesia) shows that price growth and sales growth in Indonesia's residential property sector continued to slow in the fourth quarter of 2015. The Q4-2015 residential property price index rose by a mere 0.73 percent (quarter-to-quarter) from a growth pace of 0.99 percent (q/q) in the preceding quarter. Indonesian property developers expect that this slowdown will continue at least throughout the first half of 2016.

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  • Fitch Ratings' Indonesia Property Watch Report: Pessimistic View

    Fitch Ratings' Indonesia Property Watch Report: Pessimistic View

    In its latest Indonesia Property Watch report, Fitch Ratings states that housing demand in Indonesia remained weak in the third quarter of 2015, leading to property developers' decision to postpone a number of new projects. Low commodity prices and high inflation (up to Q3-2015) led to sluggish demand and tepid economic growth in Southeast Asia's largest economy. Fitch Ratings said residential property price growth in Indonesia continued to slow for the eight consecutive quarter and believes prices are to remain muted in the coming year.

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  • Fitch Ratings: Indonesia's Property Demand Will Not Improve Soon

    Fitch Ratings: Indonesia's Property Demand Will Not Improve Soon

    Global credit agency Fitch Ratings stated in its latest Indonesia Property Watch report that demand in Indonesia's property sector will not improve in the short-term. Whereas the Indonesian government implemented policies to cool the property market in 2013 (as authorities were concerned about the emergence of a bubble), it has recently shifted its stance and implemented measures to boost the market amid the country's economic slowdown. However, Fitch Ratings does not expect a quick rebound.

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  • Economic Policy Package: Indonesian Government to Revise Luxury Tax for Houses

    Economic Policy Package: Indonesian Government to Revise Luxury Tax for Houses

    In line with the recently unveiled economic policy package, Indonesian Finance Minister Bambang Brodjonegoro said that the government plans to revise its luxury tax policy for houses. Currently, houses worth over IDR 2 billion (approx. USD $140,000) are subject to a 20 percent luxury tax. The government now plans to raise this threshold to IDR 10 billion (approx. USD $700,000). Indonesia’s luxury tax was introduced in Suharto’s New Order regime in an effort to curtail inequality within Indonesia’s society.

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  • Foreign Ownership Indonesian Property; Is it Possible?

    Foreign Ownership Indonesian Property; Is it Possible?

    Without giving details about the time frame, Indonesian Finance Minister Bambang Brodjonegoro said that the government will soon allow foreigners to own luxurious apartments in Indonesia. This move would be the government’s latest move to boost the slowing economy. Currently, private foreign individuals cannot purchase property or own land in Indonesia. This prohibition has been in place for many years as Indonesian authorities were concerned that foreign ownership of Indonesian property and land would surge significantly.

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  • Property in Indonesia: Demand for Apartments in Jakarta Still Strong

    With continued economic growth in Indonesia, thus giving rise to higher per capita GDP, the property market is still expanding rapidly, particularly in the bigger cities such as Jakarta (the political and economic center of Indonesia). By 2015, 46 new property projects will add nearly 25,000 new apartments in Jakarta (‘strata title’, a term that refers to the multi-level apartment blocks and horizontal subdivisions with shared areas) with a combined value of about IDR 23 trillion (almost USD $2 billion).

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Latest Columns Property Development

  • Impact of Indonesia's Infrastructure Development on Property Sector

    Impact of Indonesia's Infrastructure Development on Property Sector

    With the Indonesian government showing its commitment to push for infrastructure development, the property sector of Indonesia is expected to get a boost as infrastructure development opens access to new areas. For example, Indonesia's first high-speed train project that is to connect Jakarta and Bandung (in West Java) is expected to give rise to new economic centers and cities along the 142 kilometers-long railway. Moreover, existing property in the proximity of a new infrastructure project should lead to significantly rising property prices.

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  • Analysis Indonesia’s Property Market; Overview & Foreign Ownership

    Analysis Indonesia’s Property Market; Overview & Foreign Ownership

    The residential property sector of Indonesia remains attractive in 2015 despite several factors having managed to slow growth over the past two years. In this column I discuss the factors that have slowed growth in Indonesia’s property sector and how Indonesian authorities (such as the central bank and Financial Services Authority) responded to these challenges through new regulations. Lastly, I provide an update on the recently announced plan of the Indonesian government to allow foreign ownership of luxurious apartments.

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