Below is a list with tagged columns and company profiles.

Today's Headlines Property

  • Cosy Homestay for Sale in Bantul (Yogyakarta) - Astuti Gallery Homestay

    A homestay in Bantul (in the special region of Yogyakarta, one of the busiest tourist destinations in Indonesia) has just come on the market, and it could be a very interesting investment object for those who are active in the tourism industry (or those who seek to expand their business into the tourism industry).

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  • Monetary Policy: Bank Indonesia Offers More Accommodative Policies

    At its latest monetary policy meeting, completed on 18 February 2021, Indonesia’s central bank (Bank Indonesia) decided to cut its benchmark interest rate (the seven-day reverse repurchase rate) by 25 basis points (bps) to 3.50 percent, a historically low level for Southeast Asia’s largest economy. Also the deposit facility and lending facility rates were cut by 25 bps to 2.75 percent and 4.25 percent, respectively.

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  • 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

    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

    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, 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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Latest Columns Property

  • Tax Amnesty Funds Yet to Impact on Indonesia's Property Sector

    The tax amnesty program of Indonesia is yet to have an impact on Indonesia's property sector. Earlier, analysts and stakeholders expected part of the asset repatriations into Indonesia (under the government's tax amnesty program) to flow to property, either property ownership or property development projects. Although tax declarations and additional government revenue under the amnesty program were a success, the repatriation of assets that were stashed overseas has been weak. However, some stakeholders are optimistic that repatriated funds will flow to Indonesia's residential property in Q2-2017.

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  • Office Space in Jakarta: Time for Offering Discounts & Promotion

    Having an office in the center of Jakarta is usually an ambition of foreign and local businessmen in Indonesia. An office in Jakarta's Central Business District, the heart of the capital, is a strategic location (located close to the headquarters of numerous other companies that are active in Indonesia) and it adds a certain status to your company even though you will have to battle severe traffic congestion each time you visit or leave the office (but it is fair to say that also in the other parts of Jakarta traffic is immense).

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  • Foreign Investment in Property Sector of Indonesia Rose in 2016

    The year 2016 was a good one in terms of foreign investment in Jakarta's residential property sector even though Indonesia's property market remained sluggish. Various foreign property developers - including China's state-owned China Communications Construction Group (CCCG), Japanese firms Mitsubishi Corporation and Tokyu Land Corporation as well as Hong Kong's HongKong Land and Malaysia's Sime Darby Group - announced to engage in big property projects (in and around the capital city of Jakarta) that have a combined value of USD $2.8 billion.

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  • 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

    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 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 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

    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 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?

    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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