Below is a list with tagged columns and company profiles.

Today's Headlines Property

  • 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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  • Alam Sutera Realty: Riding on Indonesia's Booming Property Sector

    Alam Sutera Realty ASRI Company Profile Indonesia Investments

    Alam Sutera Realty (ASRI) is an Indonesian real estate company that develops and manages a large-scale township which includes residential and commercial properties as well as ancillary facilities and infrastructure. The company has large real estate projects in Serpong, Cibitung, Cianjur (all on Java), Tanjung Pinang (Riau) and Sanur (Bali). In the first half of 2013, the company's profits increased by 52 percent to IDR 800 billion (USD $80.0 million) as Indonesia's property sector has been booming.

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  • Companies Post Mixed Financial Results in Indonesia's Cement Sector

    Although the combined performance of the four listed Indonesian cement companies in the first six months of 2013 is good with net profit rising 13.7 percent from the same period in 2012, the individual companies posted mixed results. Net profit of Semen Indonesia, Indonesia's largest cement producer, rose 22.9 percent, while net profit of Indocement Tunggal Prakarsa, the country's second-largest cement producer, rose 11.8 percent. The other two cement producers, Holcim Indonesia and Semen Baturaja, posted a decline in net profit.

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  • Indonesia's Manufacturing Industry Most Popular Foreign Investment

    Two sectors of the Indonesian economy stand out as most popular destinations of foreign investments in the first six months of 2013. These are Indonesia's manufacturing sector and the construction, property and real estate sector, which grew 46.7 percent and 100.6 percent respectively compared to the same period in 2012. Based on data of the Indonesia Investment Coordinating Board (BKPM), foreign direct investments in Indonesia increased 23 percent to USD $14.1 billion in the first semester of 2013.

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  • Company Profile Adhi Karya: Reaping Benefits of Indonesia's Property Boom

    Indonesia Investments has updated the financial highlights of state-controlled enterprise Adhi Karya (ADHI). The company is engaged in construction services, infrastructure development, property, real estate and engineering, and procurement & construction. Its infrastructure projects include roads, bridges, irrigation, power plants and ports, while its building projects include high rise buildings, hotels, hospitals and schools. Shares and net income of the company have surged in 2012 amid Indonesia's booming property sector.

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Latest Columns Property

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

    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

    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

    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?

    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

    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

    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

    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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  • Economic Policy Package Indonesia: What are the Stimulus Measures?

    Economic Policy Package Indonesia: What are the Stimulus Measures?

    In response to the ailing global economy, Indonesian President Joko Widodo has unveiled a new economic policy package that aims to boost economic growth of Indonesia amid a highly uncertain global context. On Wednesday (09/09), Joko Widodo (often called Jokowi) provided some details about the first phase of this new stimulus package during a speech at the State Palace in Jakarta.

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  • Analysis Indonesia’s Property Market; Overview & Foreign Ownership

    Analysis Indonesia’s Property Market; Overview & Foreign Ownership

    The residential property sector of Indonesia remains attractive in 2015 despite several factors having managed to slow growth over the past two years. In this column I discuss the factors that have slowed growth in Indonesia’s property sector and how Indonesian authorities (such as the central bank and Financial Services Authority) responded to these challenges through new regulations. Lastly, I provide an update on the recently announced plan of the Indonesian government to allow foreign ownership of luxurious apartments.

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  • Indonesia Lowers Down Payments for Car, Motorcycle & Property Purchases

    Indonesia Lowers Down Payments for Car, Motorcycle & Property Purchases

    In a bid to boost economic activity in Indonesia, the central bank (Bank Indonesia) revised several regulations involving down payments for the purchase of cars and motorcycles as well as the maximum loan-to-value (LTV) ratios for first or more home purchases by Indonesian citizens. Yati Kurniati, Director of Bank Indonesia’s Macroprudential Department, said that the central bank implemented the looser monetary policy in the property and automotive sectors in an effort to boost credit growth, hence boosting the whole economy.

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