Below is a list with tagged columns and company profiles.

Today's Headlines Property

  • Bank Indonesia Studies Relaxation of Loan-to-Value Ratio in Property Sector

    Bank Indonesia, the central bank of Indonesia, is studying whether it should relax the loan-to-value (LTV) ratio for the purchase of a house through the house ownership credit scheme (in Indonesian: kredit pemilikan rumah, abbreviated KPR). Furthermore, Bank Indonesia may allow the KPR scheme for the purchase of a second house that is still under construction. These measures would be efforts to boost credit growth, particularly in the property sector, and boost overall economic activity in Indonesia.

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  • Property Sector Indonesia: Bleak Demand for Apartments in Q1-2016

    Property market research firm Colliers International Indonesia said Indonesia's residential apartment sector remained weak in the first quarter of 2016. The sector is still feeling the impact of the slowdown in the overall property sector of Indonesia that occurred over the past two years. Ferry Salanto, Associate Director for Research at Colliers International Indonesia, said only three new apartment projects were launched in Jakarta in Q1-2016: (1) The Residence at The St Regis Jakarta, (2) Arandra Residence and (3) the Victoria Tower Fatmawati City Center (these projects are expected to be completed by 2019 or 2020).

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  • Ceramic Sales Indonesia Bleak in Q1-2016 on Sluggish Property Sector

    Ceramic sales in Indonesia in the first quarter of 2016 are estimated to stand at 85 million square meters (m2) only, far below the 100 million m2 target that was set by the Indonesian Ceramic Industry Association (Asaki). Weak demand for ceramics in Indonesia is primarily caused by the country's sluggish property sector that is yet to rebound after several years of slowdown. Elisa Sinaga, Chairman of Asaki, stated that despite ceramic sales having improved slightly in late-2015, demand fell again in the first quarter of 2016 and remained weak up to the start of April 2016.

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  • Indonesia Unveils 11th Economic Stimulus Package: a Quick Look

    The government of Indonesia unveiled its eleventh economic stimulus package. The country's Chief Economics Minister Darmin Nasution presented the package at the State Palace in Jakarta on Tuesday (29/03). Indonesia's latest stimulus package includes a lower tax rate on property purchased by local real estate investment trusts, the harmonization of customs checks across the nation's ports (curtailing dwell time), government subsidies for loans taken up Indonesia's export-oriented small and medium enterprises, and the drawing of a roadmap for the nation's pharmaceutical industry.

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  • Indonesia Investments' Newsletter of 27 March 2016 Released

    On 27 March 2016, 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 over the last seven days. Most of the topics involve economic matters such as infrastructure development, the current account deficit, updates on various sectors including property and banking, the controversial decision regarding the Masela LNG plant, land reclamation, and much more.

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  • Property Industry Indonesia: Apartments in Jakarta Remain Attractive

    Despite the slowdown that occurred in Indonesia's property sector amid the overall cooling economy, at least 54 apartment projects are currently being developed in the capital city of Jakarta in 2016, nearly all of these projects are situated outside the city's central business district. Investment in apartments remains attractive for both the developer and end-user (or investor), various property watchers say. Meanwhile, global rating agency Standard & Poor's Financial Services says the outlook for Indonesian property developers this year depends on the passing of the tax amnesty bill.

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  • Indonesia's House Ownership Credit (Kredit Pemilikan Rumah) to Grow in 2016

    Indonesia's banking sector expects that House Ownership Credit (Kredit Pemilikan Rumah, abbreviated KPR) will grow strongly in 2016 as Indonesian people's purchasing power and consumer confidence is estimated to improve amid accelerated economic growth. The majority of home buyers in Indonesia use KPR from a financial institution to finance the purchase of a house. However, interest rates on KPR are high and therefore a burden for many property buyers (although the government provides subsidy for the low-income group that uses KPR to finance a first-time property purchase).

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  • Ceramic Sales Indonesia May Improve in Second Half of 2016

    Indonesia's ceramic sales are estimated to remain sluggish in the first quarter of 2016. Elisa Sinaga, Chairman of the Indonesian Ceramic Industry Association (Asaki), said domestic ceramic sales are estimated to be around 90 million square meters in Q1-2016, stagnant from sales in the same quarter last year. In full-year 2015 Indonesia's ceramic sales plunged 28.6 percent year-on-year (y/y) to 360 million square meters. The nation's ceramic industry has been plagued by Indonesia's slowing economic growth, particularly the slowdown in Indonesia's property sector.

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  • Optimism about Indonesia's Property Sector, despite Tax Amnesty Bill Delay

    Stakeholders in Indonesia's property sector may regret to learn that Indonesia's House of Representatives (DPR) decided to postpone deliberations on the tax amnesty bill until (at least) April 2016. This tax amnesty bill, originally planned to be implemented in early 2016, offers attractive tax rates to those tax evaders who declare untaxed wealth and repatriate their funds to Indonesia. If implemented in early 2016, then the bill was estimated to generate up to USD $4.4 billion in additional tax revenue in 2016. Meanwhile, part of repatriated funds would find their way into the nation's property sector.

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  • Indonesia's Residential Property Sector Still in Slowdown-Mode

    The latest survey of Indonesia's central bank (Bank Indonesia) shows that price growth and sales growth in Indonesia's residential property sector continued to slow in the fourth quarter of 2015. The Q4-2015 residential property price index rose by a mere 0.73 percent (quarter-to-quarter) from a growth pace of 0.99 percent (q/q) in the preceding quarter. Indonesian property developers expect that this slowdown will continue at least throughout the first half of 2016.

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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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