Below is a list with tagged columns and company profiles.

Today's Headlines Property

  • Profile of Summarecon Agung: A Leading Indonesian Property Developer

    The company profile of Summarecon Agung (SMRA) has been added to our catalogue of Indonesian Companies in the Business Section. Summarecon Agung is an Indonesian real estate construction and development company. Having around 40 years of experience, the company is one of the leading property firms in Indonesia, particularly with regard to township development. Its projects include residential as well as commercial development (supported by infrastructure and facilities), shopping malls, hotels and golf courses.

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  • A Small Rebound Seen in Indonesia's Cement Consumption in October

    After experiencing slowing growth in recent months, Indonesian cement sales in October 2013 increased 7.9 percent (year-on-year) to 5.58 million metric tons according to data from the Indonesia Cement Association (ASI). As such, cement sales rebounded from the 5.3 percent growth (yoy) in the previous month. The October growth rate was mainly caused by increased cement demand from islands other than Java. In particular, demand from Sumatra rose significantly. Indonesia's second most populous island bought 1.15 million tons of cement.

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  • Profile of Kawasan Industri Jababeka: Indonesian Industrial Estate Developer

    Kawasan Industri Jababeka is an Indonesian industrial estate developer that also has stakes in the country's power generation and infrastructure sectors. Between 70 and 80 percent of the company's total sales are derived from its real estate sales. Currently, the company owns strategic land banks on three locations in Indonesia (all on the island of Java): Kota Jababeka, Cilegon Industrial Park, and Tanjung Lesung. Kawasan Industri Jababeka was the first publicly listed industrial estate developer in Indonesia.

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  • 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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  • Real Estate Indonesia: Open up Property Sector to Foreign Ownership

    Real Estate Indonesia (REI) advises the Indonesian government to open up the country's property sector to foreign ownership as this is considered to benefit the Indonesian economy through the collection of taxes and foreign exchange earnings. According to Teguh Kinarto, vice-chairman of the REI's Central Board, the state can gain a lot of revenues through taxes, such as the property tax of 10%, luxury tax of 20%, as well as various other taxes. Currently, foreigners can only buy the right to use property in Indonesia, not the right to own.

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  • Indonesia Turns into Bullish Market as Quantitative Easing Continues

    The Federal Reserve's decision not to change its quantitative easing program seems to have led to a bullish market in Asia. Indonesia's benchmark stock index (IHSG) rose 4.37 percent to 4,658.2 points after the first session on Thursday's trading day (19/09). All sectoral indices were up, with the property sector in leading position. Big cap stocks, in particular, performed well. Investors are relieved that the Fed did not alter its stimulus program. Thus, funds are expected to continue flowing to emerging markets, including Indonesia.

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  • Fitch Ratings: Slower Growth in Indonesia's Property Sector

    Fitch Ratings, the global rating agency, expects slower growth in Indonesia's property sector for the next 12 months. However, for the longer term, the institution still maintains a positive outlook as Indonesia is characterized by high urbanization, a rapidly expanding middle class and low mortgage rates. Since the revival in 2011, the average selling price of Indonesia's residential properties increased by about 30 percent year-on-year, particularly in the Greater Jakarta area.

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  • Luxury House Prices in Jakarta Rise 34% (YoY) in Second Quarter 2013

    According to property consulting services company Jones Lang LaSalle, Jakarta is showing the steepest increase in prices of luxury houses among several Asian cities that have been monitored. In the second quarter of 2013, prices of luxury houses in Jakarta increased 34.2 percent year on year, followed by Beijing with a 18.7 percent price growth rate. The only city that saw a depreciation of luxury house prices was Singapore (-2.1 percent). Luxury house prices in Jakarta grew nine percent compared to the first quarter of 2013.

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  • Indonesian Government Wants more Tax out of Property Sector in 2014

    Business players in Indonesia's property sector are not happy with the government's intention to collect more tax from the sector in 2014 and onwards. The property sector has been one of the fastest growing sectors in Indonesia's economy in recent years as demand for property has surged significantly among Indonesia's expanding middle class, resulting in massive profit numbers for Indonesian property companies. Meanwhile, the government of Indonesia has been busy taking efforts to increase tax revenues.

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  • Pembangunan Perumahan: Indonesian Building Construction Company

    Pembangunan Perumahan (better known as PP) is a government-controlled construction and investment company in Indonesia. The company's lines of businesses consist of construction services in building and infrastructure, property, engineering, procurement and construction (EPC), as well as investment. PP was the second-largest company in terms of largest net income in Semester I-2013. Being a state-controlled entity, it benefits from the government's increased focus on infrastructure development. 

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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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