Real Estate

Unlike other global economies, Indonesia largely surfed over the 2008-09 financial crisis, with the economy bucking Western trends and going into a strong, expansionary mode – chalking up 6.5% GDP growth in 2011 and over 5% growth in the years since. This came in the wake of strong economic growth in the years prior to 2008 as well, leaving the Indonesian per capita income in...

After showing substantial growth across the board in recent years, the Indonesian real estate market began a period of consolidation in late 2014 that is likely to last throughout 2015. This slow down in price rises has been broadly welcomed, however, as indicative of a maturing of the sector as it heads off previous fears of over heating. Despite the slower pace overall,...

As a major contributor to the country’s economy, as well as a vital part of Indonesia’s future development, the construction sector today faces some major responsibilities, as well as major challenges. The segment has experienced continuous growth in recent years on the back of economic and population expansion, while also seeing an enlargement of its expertise and overall...

Despite the major war chest of state funding Indonesia’s government has assembled from fuel subsidy cuts and other revenue raisers, Jakarta is still short of meeting the financial targets necessary to fund its ambitious infrastructure roll out. Finding ways to bridge the gap is thus a key point of discussion in the state capital. That said, one major way to meet this challenge...

Which of Indonesia’s real estate subsectors will underpin growth in 2015 and 2016?

Following concerns that a boom in the construction of retail malls was causing increased congestion, as well as threatening the livelihoods of many smaller retail operators, in 2011 Jakarta’s then-governor Fauzi Bowo initiated a moratorium on further mall building. Since then, this moratorium has been renewed by his successors. The freeze on mall development has had a...