Below is a list with tagged columns and company profiles.

Today's Headlines Property

  • Foreign Ownership Indonesian Property: Minimum Prices Revised

    The Indonesian government revised the price mechanism for property that can be bought by expats under the "right-of-use" category. Through Agrarian and Spatial Planning Affairs/National Land Agency (BPN) Regulation No. 29/2016 on Procedures for the Granting, Relinquishment and Assignment of Ownership Rights over Residential Homes or Housing by Foreigners Resident in Indonesia, it changed a couple of the minimum prices set on property (divided by region and the type of property).

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  • Property Sector of Indonesia to Strengthen in 2017?

    More and more signs point toward a strengthening property sector in Indonesia. In the third quarter of 2016 the property sector has seen more activity, a trend that is expected to continue into the fourth quarter and in 2017. Stanley Ang, Chief Marketing Officer at urban development company Lippo Cikarang, said this development is partly supported by the government's tax amnesty program and the lower interest rate environment in Indonesia as well as Bank Indonesia's decision to ease the loan-to-value (LTV) ratio.

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  • 13th Economic Policy Package Indonesia: Low-Cost Housing

    Earlier this week the government of Indonesia released its 13th economic policy package. This 13th edition focuses on the reduction of bureaucracy (red tape) in a bid to boost the construction of low-cost housing for the poorer segments of Indonesian society. Currently, property developers are required to obtain 33 permits before they can start to build affordable housing for the low-income people of Indonesia. This results in a costly and time-consuming process.

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  • Housing Backlog Indonesia to Fall to 6.8 Million Units by 2019?

    The government of Indonesia may succesfully curb the nation's housing backlog figure to 6.8 million units by 2019. Providing adequate housing for the poorer segments of Indonesian society is one of the key tasks of the Indonesian government (for example through its 'one million houses' [per year] program). In 2015 Indonesia's housing backlog declined by 16 percent (y/y) to 11.4 million units according to the data from Indonesia's Statistics Agency (BPS). With enough effort of the government and private sector the figure should continue to drop in the foreseeable future.

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  • Foreigners Still Not Eager to Buy Property in Indonesia

    Although the government of Indonesia recently decided to allow foreigners to buy landed houses and apartments in Indonesia (while setting a minimum value on property that foreigners are allowed to purchase), there are yet to surface reports of expats buying Indonesian property. There are several matters that can explain foreigners' lack of enthusiasm to invest in property in Indonesia. Indonesian property association Real Estate Indonesia (REI) has several proposals to make it more attractive for expats to buy real estate in Indonesia.

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  • Ceramic Industry Indonesia Plagued by Weak Property Sector

    Several Indonesian ceramic producers have reportedly stopped production as stocks of ceramics are piling up at their warehouses. Normally, in the good old days when there existed high demand for ceramic products (due to Indonesia's booming property sector), stocks of ceramics lasted for only two weeks. Now, however, amid sluggish growth of Indonesia's property sector, the existing stocks of ceramics are estimated to cover at least three months.

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  • Indonesia Relaxing LTV; Demand for House Ownership Credit (KPR) to Grow?

    By relaxing the loan-to-value (LTV) ratio, the central bank of Indonesia (Bank Indonesia) expects to see House Ownership Credit (Kredit Pemilikan Rumah, abbreviated KPR) growth to accelerate by an additional 5 percent. Up to April 2016, KPR growth was recorded at 7.61 percent (y/y) only, down significantly from the years 2012-2013 when - amid the glory years of property development in Indonesia - KPR growth touched figures of between 30 - 49 percent (y/y). Back then concerns emerged whether Indonesia was about to experience a price bubble in the property sector.

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  • Indonesia Investments' Newsletter of 12 June 2016 Released

    On 12 June 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 Indonesia's 2016 economic growth revisions, the property market, retail sector, Trans-Sumatra toll road, but also social matters such as child labor and human rights violations.

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  • Indonesia's May Cement Sales Up 6.2%, Next Month's Sales Could Fall

    Indonesia's cement sales rose 6.2 percent (y/y) to 5.1 million tons in May 2016, the highest monthly figure so far in 2016. As the property sector of Indonesia remains subdued amid sluggish demand and development, growth in cement sales is regarded to be the result of infrastructure development. Data from the Indonesian Cement Association (ASI) show that Indonesia's cement sales total 24.1 million tons in the first five months of 2016, up 3.9 percent (y/y) from sales in the same period one year earlier.

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  • 13th Economic Policy Package Indonesia: Property for Low Income Families

    The government of Indonesia will soon unveil a new economic policy package, the 13th in the series of packages that have been released since September 2015 with as overall aim to boost Indonesia's economic growth. Indonesian Chief Economics Minister Darmin Nasution said the 13th edition, which is currently being discussed among government officials, will focus on residential property for low income families. However, he refrained from providing more details at this stage.

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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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