Current perspectives on the real estate markets and economy in Indonesia in 2023 and 2024 recently viewed by real estate experts in Indonesia.  They were developers, brokers, academicians, consultants, government officers and the like who attended the 2023 FIABCI Study Visit, Jakarta.

 

Recently, Dr.Sopon Pornchokchai, President, Agency for Real Estate Affairs (www.area.co.th) was invited by Mr. Budiarsa SASTRAWINATA, FIABCI World President and FIABCI Indonesia to speak at the FIABCI Trade Mission, Jakarta during September 16-20, 2023.  There was a conference on September 19, 2023 where hundreds of Indonesians joining it.  Dr.Sopon conducted this survey from those participants who are experts in real estate, mostly developers, brokers, academicians, consultants, government officers and the like.  The number of respondents was 48 from 150 Indonesian participants.  This number was enough to reflect some insights. Some interesting findings were as follows:
 

 

Experts in Indonesia viewed that the country’s economy in 2023 as quite good (assessed at 7.2 out of 10).  The economy in 2024 was rated even better at 7.7.  Therefore, the future economy of Indonesia was at a high hope.  Likewise, real estate markets were assessed to be moderate at 6.8 out of 10.  It was forecasted to be 7.5 out of 10 in 2024.  Real estate markets in Indonesia may boom in the near future.
 

 

Residential properties particularly housing in general and landed houses were among the most popular in Indonesia 20% to 18.5% respectively.  As a whole, residential developments were 53.8% Commercial properties constituted 41.5% particularly commercial in particular (12.3%), hotels (7.7%), shophouses (7.7%), retail (6.2%), offices (4.6%) and warehouses (3.1%).  There were other properties mentioned such as agriculture, infrastructure and villa for leisure.
 

 

Sinarmas Land was the largest developer in Indonesia with 20.8% slightly higher than Ciputra Group with 19.2%  Before, economic crisis in 1997, Ciputra Group was the largest.  Summarecon Gropu and Agung Sedayu Group were ranked the third and fourh in the priority with 14.6% and 12.3% respectively.  There are quite a few others such as Alam Sutera, Pakubuwono Development, Podomoro Group, Metland, Intiland, Jababeka, Modernland, Pengembang MBR, Perumnas,
 

 

Jakarta and its vicinity provinces which was also called Jabodetabek were among the largest amount of investment for 36.3%  The second largest investment attraction was the second largest city of Surabaya in Eastern Java (15.7%)  Bali constituted another 12.7% Then it was 12.7% for Batam which was good for industrial and resort developments.  Other cities included Balikpapan, Bandung, Kalimantan, Manado, Jogjakarta, Palembang, Samarinda and Sulawesi.  It should be mentioned that IKN was still not an attraction (only 5.9%).  Perhaps, investors need more confidence.
 

 

Amazingly, Singapore was the number one country where Indonesians want to buy a house or property (19.5%). The second in the priority was Australia (17.2%).  The third in the priority was USA (9.0%)  It could be said that the largest proportion of Indonesians would buy properties in Asia (33.7%), Australia and New Zealand (19.1%), Europe (18%) led by United Kingdom (4.5%) and America (14.6%) as well.

 

In sum, Indonesia is growing rapidly and should be a good destination for investment in a variety of properties. Population of the country is still growing with higher purchasing power.  Indonesia is the ‘super power’ in the ASEAN Region.