Below is a list with tagged columns and company profiles.

Today's Headlines Property

  • Jakarta's Kota Tua Revitalization Program Inaugurated by Joko Widodo

    At the end of last week, Jakarta Governor Joko Widodo (better known as Jokowi) inaugurated the Kota Tua revitalization program in North Jakarta. Kota Tua (Old Batavia) is the oldest part of Jakarta, spanning 1.3 square kilometres, and used to be the center of Dutch colonial rule in the 17th and 18th century (in the 19th century the Dutch moved its administrative center to the south). Today, Kota Tua still breathes a colonial atmosphere through the old architecture and museums, attracting tourists on a daily basis.

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  • Indonesia Investments' Newsletter of 16 March 2014 Released

    On 16 March 2014, Indonesia Investments released the latest edition of its newsletter. This free newsletter, which is sent to our subscribers once per week, contains the most important news stories from Indonesia that have been reported on our website in the last seven days. Most of the topics involve economic matters such as the impact of Joko Widodo's run for presidency on financial markets, an analysis of Indonesia's current account deficit, an updated overview of the coal mining sector, Bank Indonesia's BI rate policy, and more.

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  • Schroders Indonesia: Indonesian Investors More Confident in 2014

    According to a recent survey of Schroder Investment Management Indonesia, subsidiary of the British multinational asset management firm and a leading independent international asset management and private banking group, Indonesian investors feel more confident to invest in Indonesia in 2014. Director of Schroder Indonesia Michael Tjoajadi stated that confidence of Indonesian investors has increased due to improving economic conditions and the long-term prospects of Southeast Asia's largest economy.

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  • Survey: Property, Financial Discipline and Demand for Wealth Management

    According to research conducted by Citibank, Indonesians increasingly regard property as the most lucrative investment instrument, instead of cash, deposit or saving accounts. On second and third place come cash and insurance. Citibank conducts an annual survey through which the bank assesses Indonesians' ability to understand the importance of financial planning and implementing good financial discipline. The survey involves various groups based on gender, age, residency and income levels.

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  • Indonesian Construction Companies Post Strong Growth in 2013

    Four publicly listed - yet state controlled - construction companies recorded a combined 42 percent growth (year on year) in net profit in 2013. The combined net profit of these four companies - Wijaya Karya (Wika), Adhi Karya, Pembangunan Perumahan (PP) and Waskita Karya - totaled IDR 1.74 trillion (USD $146.2 million) last year. These numbers evidence the robust growth that Indonesia's property and infrastructure sectors experienced in 2013 and is expected to continue in 2014.

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  • Temporary Slowdown of Jakarta's Property Market due to 2014 Elections

    Jakarta's property market remains prospective despite Indonesia's slowing economy and the upcoming legislative and presidential elections (scheduled for 9 April and July 2014). Luke Rowe, Technical Advisor at Jones Lang LaSalle Indonesia, said that the apartment (particularly luxurious apartments) and condominium segments in Indonesia's capital city will continue to post growth as they have done in recent years. Generally, around 90 percent of the units of a new project are sold before construction is finished.

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  • Adhi Persada Properti Plans IPO on Indonesia Stock Exchange in 2015

    Adhi Persada Properti, subsidiary of majority state-owned construction company Adhi Karya, plans to conduct an initial public offering (IPO) on the Indonesia Stock Exchange (IDX) in 2015. The company hopes to reap IDR 600-700 billion (roughly USD $54 million) through this corporate action. However, Pulung Prahasto, Director of Adhi Persada Properti, declined to inform how many shares will be publicly listed as this is still a topic for internal debate. Adhi Persada Properti is engaged in property and real estate development.

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  • Indonesia Remains Asia's Leading Force in Office Space Development

    Growth in Jakarta's office space sector is expected to continue its upward trend. The Colliers International Asia Real Estate Forecast 2014, released by the leading global commercial real estate company, mentions a significant increase of new rental office space in the capital city of Indonesia. As such, Indonesia's office space sector (which is particularly centered in the big cities on Java such as Jakarta and Surabaya) is Asia's leader in terms of office space growth. However, this year's growth will not be as strong as in 2012 and 2013.

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  • Which Sectors are Vulnerable to Indonesia's Slowing Lending Growth?

    Bank Indonesia (Indonesia's central bank) has expressed that it will support slowing credit growth in the country's banking sector next year in order to foster a more stable financial environment amid a complex external and internal context. In recent years, credit growth in Indonesia has grown over 20 percent annually, while in 2013 it is expected to slow to between 18 and 20 percent amid a tighter policy regime. In 2014, Bank Indonesia targets credit growth between 15 to 17 percent. As a result banks will be more cautious in their lending approach.

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  • Slowing Economic Growth: What about Indonesia's Property Sector in 2014?

    Opinions about the growth prospects of Indonesia's property sector in 2014 have turned rather negative amid the country's slowing economic expansion, tighter monetary policy (mortgage restrictions and higher down payment rules), the depreciating rupiah and uncertainties about the country's legislative and presidential elections in mid-2014. In 2012 and the first half of 2013, Indonesia's property sector had been investors' darling showing spectacular growth amid a booming economy, high housing demand and a low interest environment.

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Latest Columns 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

    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)

    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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  • Foreign Ownership Landed Houses & Apartments in Indonesia (Update)

    Foreigners (expats) can buy a landed house or apartment in Indonesia (under the so-called 'right-of-use' category, locally known as hak pakai, which is weaker than the ‘right-of-ownership’ category or hak milik). However, the government set various requirements (including a minimum price). A new regulation stipulates a foreigner is not allowed to rent out his Indonesian property to other parties (authorities have the right to scrap the foreigner's 'right-of-use' title if he breaches this prohibition). Ferry Mursyidan Baldan, Indonesia's Agrarian and Spatial Planning Minister, provided an update on the issue of 'foreign property ownership in Indonesia'.

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  • Indonesian Consumer Group: Don't Buy Property at Jakarta's Land Reclamation Area

    The Indonesian Consumer Protection Foundation (YLKI) advises investors and consumers not to purchase property (yet) on the artificial islands that form part of the grand USD $40 billion land reclamation project (National Capital Integrated Coastal Development, abbreviated NCICD, also known as the Giant Sea Wall) off the coast of North Jakarta. Most property developers - including Agung Podomoro Land - have already started to advertise (and sell) property units on these islands despite these developers are yet to obtain all necessary permits.

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  • Corruption in Indonesia: Agung Podomoro Land & Pluit City

    One of Indonesia's largest listed property developers - Agung Podomoro Land - saw its shares plunge 10 percent on Monday (04/04) after the Corruption Eradication Commission (KPK), the country's anti-graft agency, named the company's President Director Ariesman Widjaja a suspect in a bribery case that also involves a Jakarta legislator. Allegedly, Muhammad Sanusi, legislator of the Jakarta provincial assembly and member of Prabowo Subianto's Great Indonesia Party (Gerindra), accepted money in exchange for support related to the Pluit City project.

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  • Indonesia's BI Rate Cut Not Enough to Boost Household Consumption?

    The decision of Indonesia's central bank (Bank Indonesia), last week, to cut its key interest rate (BI rate) by 0.25 percent to 7.00 percent and to cut the reserve-requirement ratio for commercial banks' rupiah deposits by 1 percent to 6.5 percent is a decision that should boost household consumption in Indonesia in 2016, improve people's purchasing power, give rise to a stronger automotive and property sector, and boost liquidity at local banks (hence providing room for an acceleration of credit growth in Southeast Asia's largest economy).

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  • Ceramic Industry of Indonesia Weakens on Slowing Property Sector

    Utilization of Indonesia's installed ceramic production capacity fell from 92 percent in 2014 to 62 percent in 2015, while the country's ceramic sales plunged 28.6 percent (y/y) to 350 million square meters over the same period. Elisa Sinaga, Chairman of the Indonesian Ceramic Industry Association (ASAKI), said ceramic sales have fallen over the past two years due to slowing economic growth and the sluggish property sector. Sales are expected to remain stagnant in 2016.

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  • Cement Industry Update: Semen Indonesia in a Good Position

    As cement sales in Indonesia are expected to rise nearly 10 percent (y/y) to 66.4 million tons in 2016 on the back of government-led infrastructure development, investment growth and accelerating GDP growth, three cement producers are set to benefit. The three market leaders in Indonesia's cement industry that should see higher sales are Semen Indonesia, Indocement Tunggal Prakarsa and Holcim Indonesia.

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  • Property Indonesia: Bumi Serpong Damai Expected to Perform Well

    Indonesian real estate developer Bumi Serpong Damai could be one of the country's property developers that benefits the most from an improving Indonesian economy in 2016 due to the firm's availability of land reserves in a number of regions. Purchasing power is expected to accelerate, authorities eager to boost mortgage lending, a possible BI rate cut somewhere in 2016, while many - among the young and large population - will buy their first house or apartment in the next couple of years.

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