It is almost an universally held opinion in Indonesia that a long-promised land-reform bill will be a major catalyst for growth. After several years of delays, the reform, to make land seizures for public works easier, was finally passed by parliament on December 16, 2011. It is expected to take effect by January 16, 2012. This new law is the most...
The real estate market has been focused on Jakarta for a long time, with a few other focus areas: Bali as a location for holiday homes, some industrial hives near resources and ports, and a few other exceptional areas. However modern development is starting to move beyond those areas. Several bedroom communities have sprung up to the east, west and...
Faced with ever-growing congestion in the movement of people and goods across the archipelago, the government is clear that improving and diversifying Indonesia’s logistics network stands at the heart of its efforts to boost economic growth above 7%. Air passenger traffic has continued to grow, with the large domestic market flocking to the growing...
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...
Domestic passengers have been the main drivers of growth in air transport for the past decade – more than 52m Indonesians were expected to fly domestically in 2011, around half of which on a single low-cost operator, Lion Air, which also runs Wings Air. Sustained competition in the low-cost segment has continued to keep rates low, while rising...
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...
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