Below is a list with tagged columns and company profiles.

Today's Headlines Property

  • 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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  • IPO Urban Jakarta Propertindo on the Indonesia Stock Exchange

    IPO Urban Jakarta Propertindo on the Indonesia Stock Exchange

    Urban Jakarta Propertindo, a Jakarta-based property developer that focuses on the integration between property development and the availability of public transportation, will offer 600 million shares - equivalent to 16.85 percent of the company's total shares - to the public through an initial public offering (IPO) on the Indonesia Stock Exchange.

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  • A Closer Look at Bank Indonesia's Latest LTV Ratio Relaxation

    A Closer Look at Bank Indonesia's Latest LTV Ratio Relaxation

    At the latest policy meeting (29/06) Bank Indonesia decided to relax the loan-to-value (LTV) and financing-to-value (FTV) ratios in the country's property sector (effective per 1 August 2018). By lowering down payment obligations for the consumer, the central bank aims to make it more attractive for consumers to purchase property using House Ownership Credit (Kredit Pemilikan Rumah, KPR), hence boosting overall credit growth as well as Indonesia's macroeconomic growth.

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  • Dynamic Credit Set to Enter Indonesia's Mortgage Market

    Dynamic Credit Set to Enter Indonesia's Mortgage Market

    Dynamic Credit, a Netherlands-based innovative asset management and direct lending firm, is set to become a new player in Indonesia's mortgage industry. Through local subsidiary Dynamic Credit Asia it will sell mortgages to Indonesian consumers using funds from local institutional investors. Tonko Gast, CEO at Dynamic Credit, said Indonesia's rapidly growing middle class leads to a rising pool of retirement and insurance funds. However, the availability of fixed-income investments are limited in Southeast Asia's largest economy.

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  • Property in Indonesia: Astra & Hongkong Land to Launch New Project

    Property in Indonesia: Astra & Hongkong Land to Launch New Project

    Astra International, one of Indonesia's largest diversified conglomerates, announced it will develop a luxurious residential apartment complex, called Arumaya, in South Jakarta in cooperation with Hongkong Land, a Hong Kong-based multinational property investment, management and development group. The complex is estimated to require investments worth IDR 1 trillion (approx. USD $75 million).

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  • Property in Indonesia: More Expats Rent Houses in South Jakarta

    Property in Indonesia: More Expats Rent Houses in South Jakarta

    According to commercial real estate company Colliers International Indonesia, more expatriates are renting houses in Indonesia, specifically (South) Jakarta, since the second half of 2017. The rising number of expats who rent houses in Indonesia is due to expansion plans of manufacturing and automotive companies.

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  • Property in Indonesia: Coworking Space Becomes Increasingly Popular

    Property in Indonesia: Coworking Space Becomes Increasingly Popular

    The property sector of Indonesia has been sluggish ever since the nation's property boom ended in late 2013. The same goes for the office space segment. Stagnant economic growth around 5 percent (y/y) since 2014 has led to limited growth of demand for office space in Indonesia. But for some this is a positive context. Coworking space - a shared working environment - is becoming increasingly popular.

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  • Not a Good Year for Indonesia's Ceramic Manufacturers

    Not a Good Year for Indonesia's Ceramic Manufacturers

    There still seems no light to appear at the end of the tunnel for ceramic manufacturers in Indonesia. The ceramic industry is largely dependent on the property sector. However, as Indonesia's property sector growth has remained insignificant so far in 2017, there is few room for ceramic sales growth. Moreover, local ceramic producers have to compete with cheap imports from abroad.

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Latest Columns Property

  • Property Development Indonesia: West Jakarta Gaining Popularity

    Property Development Indonesia: West Jakarta Gaining Popularity

    When walking around the Taman Anggrek Mall and Central Park Mall in West Jakarta, you will see several big property projects being built: a new mall (Neo Soho Mall), apartment complexes (Neo Soho Apartments and Taman Anggrek Residences) and a new office tower (Soho Capital). In terms of property development in Indonesia, West Jakarta now seems developers' favorite location. Hari Raharta, Secretary-General of the Indonesian Real Estate Developers Association (REI), informed, however, West Jakarta has seen solid property development since the opening of the Jakarta-Tangerang toll road back in 1984.

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  • Indonesian Property Companies in Focus: Alam Sutera Realty

    Indonesian Property Companies in Focus: Alam Sutera Realty

    Alam Sutera Realty, an Indonesia-based real estate development company, is plagued by overall declining growth in Indonesia's property sector. In the first half of 2016 Alam Sutera recorded IDR 966.5 billion (approx. USD $74 million) in pre-sales, only 19.3 percent of the company's full-year target. What are the strategies of this company to combat the slowdown?

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  • Indonesian Financial Institutions in Focus: Bank Tabungan Negara

    Indonesian Financial Institutions in Focus: Bank Tabungan Negara

    Indonesian listed financial institution Bank Tabungan Negara should benefit from the government's Housing Loan Liquidity Facility (in Indonesian: Fasilitas Likuiditas Pembiayaan Perumahan, or FLPP), a government-subsidized mortgage program for those low-income citizens who have never bought a house before. This scheme should boost House Ownership Credit (Kredit Pemilikan Rumah, or KPR) in Southeast Asia's largest economy. Good news for Bank Tabungan Negara, which is the market leader in Indonesia's mortgage loans sector.

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  • Indonesian Property Developers in Focus: Surya Semesta Internusa

    Indonesian Property Developers in Focus: Surya Semesta Internusa

    Indonesian listed property developer Surya Semesta Internusa is experiencing difficult times. The firm's three main business segments - construction, property and hospitality - are all under pressure. In the first six months of 2016 net profit of the developer plunged 64.3% (y/y) to IDR 91.5 billion (approx. USD $7 million), far below analysts' forecasts. The decline was mainly caused by a fall in its net revenue. Net revenue of Surya Semesta Internusa fell 16.6 percent (y/y) to IDR 2.08 trillion (approx. USD $159 million).

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  • Indonesian Construction Companies in Focus: Total Bangun Persada

    Indonesian Construction Companies in Focus: Total Bangun Persada

    Today, Indonesia's House of Representatives passed the Tax Amnesty Bill into law. Indonesian authorities expect this bill to bring home trillions of rupiah (hundreds of million of US dollars) that partly flow into Indonesia's property sector. Total Bangun Persada, one of Indonesia's leading construction companies, is one of the companies that can benefit from these inflows. CIMB Securities expects the company's revenue to grow 6.8 percent (y/y) to IDR 2.52 trillion (approx. USD $189 million) in 2016.

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  • Indonesian Companies in Focus: Bumi Serpong Damai

    Indonesian Companies in Focus: Bumi Serpong Damai

    Indonesian real estate developer Bumi Serpong Damai, part of the Sinar Mas Group, has ample room for expansion. According to its latest quarterly financial report, the company owns 3,954.88 hectares of land that has not been developed yet, 70 percent of which is located near BSD City, an ambitious urban planning scheme that combines housing, business and commercial properties not far from Indonesia's capital city of Jakarta. The company also has land banks in Jakarta, Bogor, Surabaya, Palembang, Balikpapan and Samarinda.

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  • 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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  • Indonesian Companies in Focus: Logistics Firm Mega Manunggal Property

    Indonesian Companies in Focus: Logistics Firm Mega Manunggal Property

    Mega Manunggal Property, an Indonesia-based logistics property company that is primarily focused on the development and provision of logistics facilities related to warehouses and office buildings, is expected to see rising net income and revenue in the years ahead supported by growing demand for modern warehouses, logistics services, enhanced operational efficiency, and an increase in rental prices. Mega Manunggal Property is part of the Argo Manunggal Group, a group that is active in various sectors including textile, steel, property, mining, and insurance.

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  • 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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  • Indonesian Companies in Focus: Pembangunan Perumahan (PP)

    Indonesian Companies in Focus: Pembangunan Perumahan (PP)

    Corporate earnings of Indonesian state-controlled construction and investment company Pembangunan Perumahan (abbreviated PP) are in line with analysts' forecasts. In the first quarter of 2016, PP's revenue rose 30.6 percent (y/y) to IDR 2.58 trillion (approx. USD $195 million), while net profit rose 5 percent (y/y) to IDR 98 billion (approx. USD $7.4 million) from the same quarter one year earlier. These figures indicate the company experienced a solid start of the year.

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