Below is a list with tagged columns and company profiles.

Today's Headlines Property

  • Cement Sales Indonesia Climb 4.7% (y/y) in November 2015

    Cement Sales Indonesia Climb 4.7% (y/y) in November 2015

    Cement sales in Indonesia climbed 4.7 percent (y/y) to 6.1 million tons in November 2015 supported by rising cement sales in all regions apart from the Moluccas and Papua. Widodo Santoso, Chairman of the Indonesian Cement Association (ASI), said domestic cement demand rose sharply in November despite seeing some rainfall (which usually leads to delays in development of infrastructure and other construction projects). Santoso says this rise is due to improved government spending on infrastructure projects.

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  • Moody's: Stable Outlook for Rated Indonesian Companies in 2016

    Moody's: Stable Outlook for Rated Indonesian Companies in 2016

    New York-based credit rating firm Moody’s Investors Service expects global economic factors to have less of a negative impact on Indonesian companies in 2016. In its latest report titled "Non-Financial Corporates - Indonesia: 2016 Outlook - Corporate Profits under Pressure but Likely to Stabilize" it states that amid stabilizing economic growth and the recently unveiled government stimulus packages, companies should manage to improve their corporate performances in 2016.

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  • Fitch Ratings' Indonesia Property Watch Report: Pessimistic View

    Fitch Ratings' Indonesia Property Watch Report: Pessimistic View

    In its latest Indonesia Property Watch report, Fitch Ratings states that housing demand in Indonesia remained weak in the third quarter of 2015, leading to property developers' decision to postpone a number of new projects. Low commodity prices and high inflation (up to Q3-2015) led to sluggish demand and tepid economic growth in Southeast Asia's largest economy. Fitch Ratings said residential property price growth in Indonesia continued to slow for the eight consecutive quarter and believes prices are to remain muted in the coming year.

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  • Summarecon Agung: Successful Launch Summarecon Bandung Project

    Summarecon Agung: Successful Launch Summarecon Bandung Project

    The launch of the clusters Amanda and Btari - consisting of 400 residential housing units - in the Summarecon Bandung project was well received by the market last week. Within five hours all units were sold. The Summarecon Bandung project is an ambitious integrated city which includes residential areas, commercial areas and mixed-use areas in the Southeastern part of Bandung (West Java). The company behind this project is publicly-listed Summarecon Agung, an Indonesian real estate construction and development company.

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  • Fitch Ratings: Indonesia's Property Demand Will Not Improve Soon

    Fitch Ratings: Indonesia's Property Demand Will Not Improve Soon

    Global credit agency Fitch Ratings stated in its latest Indonesia Property Watch report that demand in Indonesia's property sector will not improve in the short-term. Whereas the Indonesian government implemented policies to cool the property market in 2013 (as authorities were concerned about the emergence of a bubble), it has recently shifted its stance and implemented measures to boost the market amid the country's economic slowdown. However, Fitch Ratings does not expect a quick rebound.

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  • Property Industry Indonesia: Office Space Vacancy in Jakarta Growing

    Property Industry Indonesia: Office Space Vacancy in Jakarta Growing

    The amount of empty office space in Jakarta's central business district (CBD) has grown as supply outpaces demand, while business activity in Indonesia has slowed amid the ongoing economic slowdown of Southeast Asia's largest economy. Since 2011 Indonesia's GDP growth has been slowing due to sluggish global growth and low commodity prices. According to information from Savills Consultants Indonesia, unit of London-listed global real estate service provider Savills Plc, the office space vacancy rate in Jakarta grew from 4.8 percent in 2014 to 8.4 percent in mid-2015.

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  • Economic Policy Package: Indonesian Government to Revise Luxury Tax for Houses

    Economic Policy Package: Indonesian Government to Revise Luxury Tax for Houses

    In line with the recently unveiled economic policy package, Indonesian Finance Minister Bambang Brodjonegoro said that the government plans to revise its luxury tax policy for houses. Currently, houses worth over IDR 2 billion (approx. USD $140,000) are subject to a 20 percent luxury tax. The government now plans to raise this threshold to IDR 10 billion (approx. USD $700,000). Indonesia’s luxury tax was introduced in Suharto’s New Order regime in an effort to curtail inequality within Indonesia’s society.

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  • Moody’s Positive about Indonesia’s Tax Cut and Liquidity Level Property Developers

    Moody’s Positive about Indonesia’s Tax Cut and Liquidity Level Property Developers

    International credit rating agency Moody’s Investors Service stated that the healthy liquidity levels of Indonesian property developers are expected to be sufficient to offset the negative impact of the heavily depreciated rupiah. A weak rupiah is troublesome - and negative for the credit rating - as about two-thirds of property developers’ debt is US dollar-denominated, while their revenue is rupiah-denominated. Secondly, Moody's is positive about the government recent decision to offer tax holidays.

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  • AkzoNobel Targets Indonesia as New Growth Market

    AkzoNobel Targets Indonesia as New Growth Market

    AkzoNobel, the Dutch multinational that is primarily engaged in the fields of decorative paints, performance coatings and specialty chemicals, stated that it has shifted its focus from China to Southeast Asia, particularly Indonesia and Vietnam. Ton Buchner, Chief Executive Officer of AkzoNobel, said growth in China has lost its decade-long momentum and thus AkzoNobel will reduce investment realization in China and instead focus on new growth markets in Southeast Asia.

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  • IPO Binakarya Jaya Abadi on the Indonesia Stock Exchange

    IPO Binakarya Jaya Abadi on the Indonesia Stock Exchange

    On Tuesday (14/07), construction firm and property developer Binakarya Jaya Abadi became the 11th company to list on the Indonesia Stock Exchange (IDX) in 2015. The company offered 150 million shares, 25 percent of its paid up capital, in an initial public offering (IPO) at an offering price of IDR 1,000 per share, thereby raising IDR 150 billion (USD $11.3 million). Despite weak market sentiments, the company’s shares rose 50 percent on its trading debut on the IDX. RHB OSK Securities was underwriter for the IPO.

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Latest Columns Property

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

    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

    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

    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

    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

    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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  • Indonesia's Falling Cement Sales in August 2013 Indicate Slowing Economy

    Indonesia's Falling Cement Sales in August 2013 Indicate Slowing Economy

    According to data from the Indonesian Cement Association (ASI), domestic cement sales have fallen 5.8 percent to 3.3 million tons in August 2013 (from the same month last year). Being an important indicator of economic expansion (as cement sales inform about the development of property and infrastructure projects in the country), these lower cement sales confirm the slowing pace of economic growth in Indonesia. Compared to July 2013, cement sales in Indonesia fell by a massive 32 percent.

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  • Slowing Growth in Indonesian Cement Sales Continues in Semester II

    Slowing Growth in Indonesian Cement Sales Continues in Semester II

    Cement sales in Indonesia grew by seven percent to 32.9 million tons in the period January to July 2013. This pace of growth is significantly lower compared to the double-digit cement growth rate last year and thus forms another sign of cooling economic growth in Southeast Asia's largest economy (cement sales are a good indicator to measure the state of economic growth of a country). A slowdown in domestic cement sales is likely to continue in the second half of 2013, partly due to a decline in infrastructure projects.

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  • Market Waits for Indonesia's Inflation Data and Financial Company Reports

    Indonesia's main stock index (IHSG) increased 3.98 points to close at 4,724.41 on the last trading day (19/07). During last week, the index rose a limited 1.97 percent amid the context of a weakening IDR rupiah (Indonesia's currency even fell below the psychological boundary of IDR 10,000 against the US dollar). The IHSG's performance last week was mainly supported by rising shares in the country's finance, property, construction and metal mining sectors, while the cement and plantation sectors were corrected.

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