Construction

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What are the main infrastructure priorities of the Ministry of Public Works for 2012-14?

How will the recently imposed rule on down payment obligations affect the growth of the real estate sector in the short term?

The growth of Indonesia’s construction sector is largely being driven by a rapid ramping up of manufacturing investment. Until a few years ago the country was not favoured as a place to locate factories. A weak domestic market, substandard infrastructure, corruption, high interest rates, complex tax policies and better opportunities elsewhere...

What segments of the real estate market do you see as significant areas of opportunity?

After a decade-plus of going nowhere, the value of real estate and rental rates are rising so fast that Jakarta has been identified by PwC and the Urban Land Institute as the most promising property market in the region in 2013. Many forces are at work, some short term and others more long term and significant.

Many countries in Asia have historically had weak property rights, outright restrictions on foreign ownership, or both. However, most have a strong bias toward property investment, and often view the health of the real estate market as an indicator of overall economic well-being. The result is a patchwork of regulations from Jakarta to Beijing that...

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