The real estate sector is a microcosm of Indonesia’s entire economy. The market features surging demand, good value in a regional context, a bright future, and bureaucratic bottlenecks that, if unaddressed, could create problems in the future. As is often the case, it is the demographics that loom largest, and in the real estate sector this means a...
As with many economic activities in Indonesia, it is the country’s unlikely geography that has determined the size, scope and characteristics of the construction industry. Indonesia is the world’s largest country composed only of islands, and the 15th largest by land area. Building ports, airport, bridges and other pieces of crucial infrastructure...
There should be major growth for the foreseeable future in Indonesia’s cement market, as the country ramps up an infrastructure-building drive, addresses a housing shortage and attempts to match demand in one of the world’s most populous countries. Per capita consumption was about 165 kg in 2010, which is low compared to other developing markets –...
Real estate professionals in Indonesia are convinced that one of the biggest things the government could do to juice the market is to lift restrictions on foreign ownership. Several such limitations in existence have put a lid on market returns and growth potential, they say. It is a tough call. Foreign ownership of real estate assets, particularly...
Not all of Indonesia’s leading developers are publicly traded, but at present there are 21 stocks listed in the property, real estate and construction sector on the main trading board at the Indonesia Stock Exchange. This, alongside several other factors, means the outlook for 2011 is good. The group’s performance has been slightly less robust than...
National leaders have zeroed in on public-private partnership (PPP) deals as their vehicle of choice for building the infrastructure needed to power economic growth. The PPP structure is fairly new, and is often relied on by governments that do not want to incur large debts by borrowing the complete cost of a project.
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