Construction & Real Estate
The construction sector will likely be a bright spot in an otherwise subdued economic growth story in 2016, as the widening infrastructure gap and recent fuel subsidy reforms have driven a surge of new government spending into a massive public infrastructure programme. Despite recording moderate recent increases in sales and prices, residential growth has slowed from the double-digit heyday of 2011-13, while oversupply in the office market is beginning to weigh on prices and rental rates, particularly in Jakarta. A few bright spots stand out, however. The booming retail segment is expected to perform well in 2016 on the back of growing demand, while Indonesia’s secondary cities hold considerably high potential across all segments.
This chapter contains interviews with Rizkan Chandra, President-Director, Semen Indonesia; and Eddy Hussy, Chairman, Real Estate Indonesia.
