Why Indonesia Property Very Prospective?

Prospects for the real estate sector of Indonesia, especially Jakarta has received recommendations from the Institute of World Analysts such as Urban Land Institute and Pricewater House Cooper this year, which puts the city of Jakarta as the most prospective for investment in the Asia-Pacific region. Not only that, “The Wealth Report 2013” released by Knight Frank also puts Jakarta as the city with the highest property price increases (38%).

In his presentation at the Forum APRECE (Asia Pacific Real Estate Convention and Exhibition) 2013, held at the Marina Bay Sands, Singapore, last week, Rusmin Lawin, Secretary General of FIABCI (Federation of Real Estate World) Asia Pacific Regional Secretariat suggests six reasons why properties Indonesia is very prospective.

First, the economic growth rate was steady at 6% – 6.5% in recent years. This condition is expected to last up to five years.

Second, Indonesia’s population of 250 million people or the world’s fourth biggest market of ASEAN which has a total population of 600 million people. In addition, Indonesia is the only ASEAN country that goes in the G-20 economies.

Third, Indonesia is experiencing an increase in the productive age population with an average 29-year-old population reached 50%. Meanwhile, the purchasing power of about $ 4 per day as well as a high degree of urbanization, the ratio reached 55% in the past ten years.

Fourth, Indonesia’s natural resources sector are excellent, such as oil palm, rubber, cocoa, and mining.

Fifth, an increase in FDI (Foreign Direct Investment) last year reached $ 30 billion, up from USD19 billion in 2011.

Sixth, the government initiated a program, MP3EI (Master Plan for the Acceleration and Economic Development Indonesia) is believed to be able to keep pace with the national infrastructure. Accelerating infrastructure is key to accelerating the fulfillment of the national housing backlog has reached 13.6 million units.



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