Below is a list with tagged columns and company profiles.

Today's Headlines Property

  • 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

    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

    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

    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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  • Office Space in Jakarta: Rising Demand, but Supply Rising More Swiftly

    Based on accounts of services providers in Indonesia's property market, demand for office space in Indonesia, and specifically in the capital city of Jakarta, shows good growth starting from the third quarter of 2017. Especially online businesses (for example the e-commerce industry) are showing rising appetite for office space.

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  • Ombudsman Urges Indonesian Consumers Not to Buy Meikarta Property

    The Lippo Group continues to aggressively promote its ambitious Meikarta project in Indonesian media and in various strategic locations. In fact, the group claims that pre-sales of apartment units has already reached 130,000 per August 2017, an impressive number. However, the project is controversial because the developer reportedly did not obtain all necessary permits and land that is required to construct the integrated township.

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  • Property Market of Indonesia: Batam & Medan Promising

    As the property market in Jakarta and surrounding cities remains bleak, Indonesian property developers are eager to expand in the regions outside of the island of Java. Two examples are Batam, an island located not far from Singapore that is equipped with booming urban and industrial zones, and Medan, the biggest city on Sumatra.

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  • Property in Indonesia: Meikarta's Land Acquisition at 16.8%

    So far the Lippo Group only managed to acquire 16.8% of the total land that is required to develop the ambitious Meikarta township project. Meikarta is designed to become a full-fledged township, equipped with high-class and modern residential, commercial, industrial, cultural and educational centers, located on a 500-hectare plot of land 34 kilometers to the east of Jakarta, including 100 hectares of open green space, 250,000 units of prime residential property, and 1,500,000 m2 of prime commercial space.

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  • Investment Climate Property Development: Tough Permit Process

    The Indonesian government aims to provide affordable housing for the nation's poorer (low-income) households through the One Million Houses program, a program that was launched in mid-2015 by Indonesian President Joko Widodo. However, property developers complain that in most regions it is tough to obtain all necessary permits to construct the houses.

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  • Indonesia's One Million Houses Program on Schedule in 2017

    So far this year Indonesia's "One Million Houses Program" is well on its way. Based on information from Indonesia's Public Works and Housing Ministry a total of 499,702 houses were constructed under the program in the first half of 2017, achieving 49.9 percent of the full-year target.

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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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