Below is a list with tagged columns and company profiles.

Today's Headlines Property

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

    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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  • Company Profile of Property Developer Surya Semesta Internusa (SSIA)

    PT Surya Semesta Internusa Tbk (SSIA) is an Indonesian property developer. Over the last four decades, Surya Semesta Internusa has transformed from a private real estate developer into a public company with 8 operating subsidiaries, whose activities are grouped into three main categories i.e. property, construction and infrastructure, and hospitality. The company has a firm focus on industrial estates, resorts, hotels and offices but has recently also started to invest in toll roads.

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  • Indonesian Property Developers not Happy with New Down Payment Rules

    After the central bank of Indonesia placed stricter rules on mortgages for buying property, Indonesian property developers, as well as the Indonesian Real Estate Association (REI), have criticized the new framework as it will impact on demand for property. The central bank implemented new loan-to-value ratios amid concerns that a property bubble may arise. According to the bank, many buyers of apartments are speculators who benefit from sharply rising property prices.

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  • Holcim Indonesia: the Third-Largest Cement Producer in Indonesia

    Holcim Indonesia, the third largest cement producer in Indonesia, is a cement-based building materials and services provider with operations in two countries, Indonesia and Malaysia. The company currently holds a market share of around 15 to 16 percent in Indonesia in terms of cement production. Holcim and its subsidiaries have a combined cement production capacity of 9.1 million tons in Indonesia. The company, part of the Swiss-based Holcim Group, aims to expand production capacity with its two new Tuban plants.

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  • Semen Indonesia: the Largest Cement Producer in Indonesia

    Semen Indonesia, formerly known as Semen Gresik, is Indonesia's largest cement producer. The company, which is one of the few Indonesian companies that has spread its wings abroad for business expansion, forms the holding company of three large cement producers: Semen Gresik (East Java), Semen Padang (West Sumatra) and Semen Tonasa (South Sulawesi). Although the company lost a couple of percentage points in terms of market share, it still dominates Indonesia's lucrative cement industry.

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  • Ciputra Development, a Leading Indonesian Property Company

    Ciputra Development, part of the Ciputra Group, is one of the largest property companies in Indonesia. It focuses on residential and commercial property projects, which include housing, hotels, shopping centers, apartments, office space, recreational places and related facilities. Ciputra Development develops various mega-projects, such as the Ciputra World 1 project in Jakarta which contributes to the development and transition of Jakarta towards becoming a modern and luxurious city.

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  • Bank Indonesia Raises its Interest Rate to 6.0% to Support the Rupiah

    The central bank of Indonesia (Bank Indonesia) decided today to raise its benchmark interest rate by 25 basis points to 6.0 percent. The decision was made amid concerns about the inflationary impact of a hike in subsidized fuel prices (planned this June) as well as increasing uncertainty in global financial markets as central banks' may scale back stimulus programs. The Indonesian rupiah has weakened considerably in 2013 and forms the worst performer in Asia after the Japanese yen among the 11 most-traded currencies tracked by Bloomberg.

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Latest Columns Property

  • Full Year 2013 Financial Results Indonesian Companies

    Indonesia Investments presents a selection of corporate earnings reports (covering full-year 2013) of Indonesian companies that are listed on the Indonesia Stock Exchange, categorized by sector: (1) agriculture & mining, (2) basic industry & chemicals, (3) miscellaneous industry, (4) consumer goods, (5) property and real estate, (6) infrastructure, utilities and transportation, (7) finance, and (8) trade, services and investment. The tables display both net profit (loss) and revenues, together with year-on-year (yoy) growth.

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  • Overview of the Booming Residential Property Sector of Indonesia

    Indonesia's residential property market has shown robust growth in recent years as demand from the country's rapidly expanding middle class for mid-level and luxury property increased steadily amid a low interest rate environment and robust national economic growth. Demand for property is also backed by high consumer confidence as a recent Nielsen survey shows that Indonesians are among the world's most confident consumers. Indonesians' consumer confidence was at a four-year high in the fourth quarter of 2013.

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  • Jakarta Composite Index Falls 0.49% amid Declining Asian Stock Indices

    When there are few positive sentiments that can push Indonesia's benchmark stock index (Jakarta Composite Index, also known as IHSG) into higher territory there is always the risk of downreversal due to profit taking. Particularly as the IHSG has shown a steady rising trend in recent weeks. The IHSG's decline on Monday (24/02) was influenced by falling Asian indices after a sell off of property and construction stocks emerged. The continued appreciation of the Indonesian rupiah exchange rate was also unable to provide enough support for the index.

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  • Sales of Ceramics in Indonesia Expected to Plunge 10% in 2014

    With slowing economic growth and a stricter monetary policy approach of the central bank, Indonesia's ceramic industry is expected to record slowing growth in 2014. This year, the country's ceramic sales are projected to amount to 400 million square meters (m²). About 12 percent of this amount is exported to countries abroad. However, in 2014, sales are expected to plunge by 5 to 10% to 360-380 million m². A weakening rupiah and slowing property sector, which accounts for significant ceramic demand, are the major causes of the decline.

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  • Financial Results Indonesian Companies Quarter III-2013

    Indonesia Investments presents a selection of corporate earnings reports (third quarter 2013) of Indonesian companies that are listed on the Indonesia Stock Exchange, categorized by sector: (1) agriculture & mining, (2) basic industry and chemicals, (3) miscellaneous industry, (4) consumer goods, (5) property and real estate, (6) infrastructure, utilities and transportation, (7) finance, and (8) trade, services and investment. The tables display both net profit (loss) and revenues over the first nine months of 2013, together with year-on-year (yoy) growth.

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  • Unable to Continue Rebound; Indonesia's Stock Index Falls 0.73%

    Indonesia's benchmark stock index (IHSG) was not able to continue its rebound. On Friday (15/11), the IHSG fell 0.73 percent to 4,335.45 points amid widespread profit taking. Foreign investors recorded net selling of IDR 193 billion (USD $16.9 million) on today's trading day. Moreover, investors are concerned about the impact of the higher interest rate of the central bank (7.50 percent), particularly on the property and banking sectors in the fourth quarter of 2013.

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  • Property Sector of Indonesia: Still Rising but Growth Slows Temporarily

    According to Ferry Salanto, Associate Research Director at Colliers International Indonesia, the weakening rupiah exchange rate against the US dollar in recent months has resulted in an increase of property sales in Indonesia, particularly apartments. Salanto says it is not just an investment for the buyer but also a matter of security. Property is currently a better and safer alternative to the holding of rupiahs. In the third quarter of 2013, property sales increased despite the higher benchmark interest rate and the tightening property credit environment.

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  • Indonesia's Cement Sales Continue to Slow amid Weaker Property Sector

    According to the Indonesian Cement Association (ASI), cement sales in Indonesia reached 41.6 million tons in the first three quarters of 2013, a 5.3 percent increase compared to domestic cement sales in the same period in 2012 (39.5 million tons), while Indonesia's cement exports jumped by 187 percent to 503 thousand tons. As such, total cement sales from January to September 2013 grew 6.2 percent to 42 million tons. Meanwhile, Semen Indonesia, Indonesia's largest cement producer, managed to expand its market share.

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  • Bank Indonesia Amends LTV/FTV Ratio to Safeguard Financial Stability

    Bank Indonesia amended its regulation concerning the Loan To Value (LTV) and Financing To Value (FTV) ratio for property credit and property-backed consumer loans. The LTV/FTV ratio is the ratio between the value of credit/financing that can be allocated by a bank and the corresponding value of collateral in the form of property when the loan is allocated. Property is real property that includes houses, vertical housing (apartments, flats, condominiums and penthouses), home offices and home stores.

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  • Bank Indonesia Plans New Rule to Avert Possible Property Bubble

    In order to avert a potential bubble in Indonesia's property sector, Bank Indonesia (the central bank of Indonesia) is planning to further tighten its monetary policy in the sector. After having raised the minimum down payment requirement on housing loans to 30 percent for first home ownership (thus a loan-to-value ratio of 70 percent) in June 2012, Bank Indonesia now intends to prohibit credits for the purchase of a second, third (or more) house that has not been built yet (still in the preconstruction phase). This new rule is expected to be introduced this month.

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