Below is a list with tagged columns and company profiles.

Today's Headlines Property

  • Meikarta, One of Indonesia's Troubled Property Projects?

    Although in local media Indonesian property developer Lippo Cikarang is aggressively advertising its ambitious Meikarta project to the consumer, there is uncertainty whether the developer indeed collected all necessary permits required to construct the new township. Meikarta is marketed as a 500-hectare property development project with 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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  • Property Sector Indonesia: Mortgage Growth Remains Bleak

    The property sector of Indonesia remains somewhat depressed. This is reflected by sluggish demand for house ownership credit (in Indonesian: kredit pemilikan rumah, abbreviated as KPR) and apartment ownership credit (kredit pemilikan apartment, or KPA) so far this year. According to data from Indonesia's central bank (Bank Indonesia) KPR and KPA credit disbursement growth stood at 7.7 percent on a year-on-year (y/y) basis in May 2017, slowing from a 7.8 percent (y/y) growth pace in the preceding month.

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  • Indonesia Abroad: Sinarmas Land Expanding its Property in London

    Real estate development company Sinarmas Land Ltd, a unit within the Sinar Mas Group, purchased a big office building in Central London for the price of nearly USD $269 million. Sinar Mas Land Ltd, headquartered and listed in Singapore, is engaged in the property business through its operations in primarily Indonesia, China, Malaysia and Singapore.

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  • Property in Indonesia: Investment in Homestays & Houses in Yogyakarta

    Investment in homestays as well as the value of houses in Yogyakarta have risen significantly after local authorities implemented a moratorium on new hotel development (effective since Jan. 1, 2014 and will last until at least 1 Jan. 2018). The city and province of Yogyakarta, located in the center of Indonesia's Java island, are important tourist destinations. Moreover the city of Yogyakarta is a key student city. Therefore, demand for houses in Yogya (used for the homestay or student accommodation business) has grown.

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  • Q1 Earnings Indonesia's Property & Industrial Estate Firms Remain Weak

    The performance of those Indonesian property companies and industrial estate managers that are listed on the Indonesia Stock Exchange is not very encouraging so far this year. When we take a look at the corporate earnings of 17 listed property firm and industrial estate managers, then we see a combined 37.6 percent year-on-year (y/y) fall in net profit in the first quarter of 2017 (from their net profit in the same quarter one year ago). Meanwhile, their combined revenue fell 0.6 percent (y/y) in Q1-2017.

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  • Demand for Indonesia's House & Apartment Credit Remains Bleak

    Although Indonesia's central bank (Bank Indonesia) lowered its benchmark interest rate by 150 basis points in 2016 and eased the nation's loan-to-value (LTV) ratio, implying it should be easier for Indonesian consumers to buy a house or apartment, the disbursement of house ownership credit (kredit pemilikan rumah, abbreviated as KPR) and apartment ownership credit (kredit pemilikan apartment, KPA) in Indonesia remains bleak so far in 2017.

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  • Property Sector of Indonesia Subdued, Tax Amnesty to Impact?

    After the ending of Indonesia's tax amnesty program, property players in Southeast Asia's largest economy remain optimistic that inflows of fresh funds - originating from the tax amnesty program - will give a boost to Indonesian property sector in the second half of 2017. This should then cause some momentum, meaning property developers dare to kick-start new projects. Considering weak demand for property in Indonesia over the past couple of years, many local property developers have been postponing projects.

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  • Residential Property Sector of Indonesia to Improve in 2017?

    Colliers International Indonesia, a leading commercial real estate consultancy, expects to see an improvement in the residential property sector of Indonesia in 2017, particularly in the capital city of Jakarta, after this sector experienced two weak years previously. In terms of sales and price increases, apartments are most the promising property object this year according to analysts.

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  • What is Indonesia's Progressive Tax on Idle Land Ownership?

    Sofyan Djalil, Indonesian Minister of Agrarian Affairs and Spatial Planning, says the progressive tax on land that is deemed idle will not disturb the investment climate of Indonesia because industrial estates and land that has a clear development purpose are exempted from this tax (this includes land destined for property development projects). Through the progressive land tax the government wants to combat speculative land buying, something that has become a problematic phenomenon in Indonesia.

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  • Performance Indonesia's One Million Houses Program Better in 2017?

    Indonesia's Public Works & Housing is hopeful that the government's One Million Houses program will be more successful in 2017 supported by the 13th economic policy package that aims to ease red tape surrounding the construction of low-cost housing for the poorer segments of Indonesian society as well as high demand for property due to improving purchasing power amid low inflation and accelerating economic growth.

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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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