Below is a list with tagged columns and company profiles.

Today's Headlines Property

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

    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

    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

    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%

    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

    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

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

    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

    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

    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

    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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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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