Cinema Developments! Boosting the film industry of Indonesia

The Lippo Group of the Riady family plans to develop 1,000 screens within five years across the country, under its Cinemaxx brand. They will first focus on second and third tier cities before looking into major metropolises including Jakarta.

The large firm, with interests in real estate, media, retail, healthcare and hospitality, is in good place to develop Indonesia’s exhibition infrastructure, owning shopping malls with political links essential for the job.

During recent months, deals have been signed with technology providers including Barco, Dolby Atmos, GDC and Masterimage 3D, this is as well as the firm also developing its own giant screen brand, MegaMaxx. The CEO of Cinemaxx announced at the recent CinemaCon of goals to offer state-of-the-art technology with first-class amenities.

Louvre - Another group to open multiple hotels in Indonesia

The tenth largest hotel group in the world and the second largest of Europe, the Louvre Hotels Group, has publicised expansion plans for Indonesia, announcing up to 30 new hotels within the upcoming three years under the Première Classe and Golden Tulip brands.

The announcement marks a further obligation to the destination following Golden Tulip’s access into the market during late 2012.

Since then it has established the Golden Tulip Galaxy Banjarmasin offering 138 rooms. There are six more hotels totalling an additional 1,286 rooms, planned to open this year:

1. Golden Tulip Devins, Bali - scheduled for a June opening, offering 108 rooms in trendy lifestyle region of Seminyak

2. Golden Tulip Essential - August opening, offering 94 rooms in the Denpasar business district region

3. Golden Tulip Jineng Tamansari, Kuta, Bali - October opening, offering 185 rooms on Sunset Road

4. Golden Tulip Essential - November opening, offering 186 rooms in the Pontianak business region

5. Golden Tulip Kalyana, Buah Batu, Bandung - December opening, offering 302 rooms with easy access to industrial and business regions

6. Royal Tulip Bandung, Baros, Cimahi - December opening, offering 411 rooms with easy access to Jakarta, situated just across the exit of the toll road. This will be the flagship of the Indonesian group, being the largest hotel of the group, as well as the first Bandung hotel quartering the major convention centre of the town alongside a wedding chapel

Developer reports profit increase, thanks to growing demand for homes

Modernland Realty property developer has reported a substantial 21% increase in profit during the first quarter of this year, owing to a growing demand for homes.

The property developer company’s net income for the first three months of this year was Rp390.2billion ($33.6million), comparable with Rp323billion during the same period last year, as its revenue rose 34% to Rp790billion.

The Tangerang based property developer, Modernland’s portfolio includes a golf course in Tangerang, townships, as well as residential developments within and surrounding Jakarta, plus in Sukabumi, West Java. The company also owns an industrial estate in Serang, Banten.

Modernland’s property sales rose by 34% to Rp761billion during the first quarter, accounting for over 95% of the total revenue of the company.

Revenue from rental fees accumulated to Rp15.6billion, up 49% from the same period last year. The company’s club houses and golf course generated Rp12.5billion, growing almost 50%.

The company has allotted Rp1.3trillion for capital outflow this year, utilised mainly to purchase approximately 1,000 hectares of Jakarta land.

A representative from Modernland, previously announced plans to set aside 400 hectares for an industrial estate with the remainder for other East Jakartan developments.

Modernland has been developing its portfolio in East Jakarta since last year, when the company paid Rp2.29trillion for a 51% stake in Mitra Sindo Makmur (MSM) and Mitra Sindo Sukses (MSS). They jointly hold a 51% stake in Jakarta Garden City, a 270hectare commercial and residential project in Cakung, East Jakarta. Modernland formerly held a 51% in the project.

Modernland also wrapped a deal with a local branch of Japanese retail developer, AEON Mall Indonesia, purchasing 8.5hectares of commercial land in Jakarta Garden City for $45.67million.

As reported by Cuncun, the company expects marketing sales of properties still under construction, to hit Rp4trillion this year, in comparison to the estimated Rp2.7trillion last year.

International real estate firms looking into Asia Pacific!

Numerous international real estate firms are wagering on the Asia Pacific region for global expansion and growth.

TIAA Henderson Real Estate (TH Real Estate), a London based property investment manager, recently announced plans to support its foothold in Asia.

The joint venture firm, managing approximately USD71billion in assets and properties globally, has commenced business in Asia with USD550million worth of projects. This is through U.S. based financial services firm, TIAA-CREF and Henderson Global Investors of the U.K. Commercial properties included will be found in Shanghai, Tianjin and Foshan, Guangdong of China. The company is also in negotiations with its regional collaborator, Fingen Group’s real estate arm, RDM Asia to develop luxury retail centres throughout Asia.

The firm has announced for news over upcoming 18 months relying on partnership, acquisition and organic growth.

Sydney based developer, Crown International Holdings Group, is also growing in Asia, having recently established a marketing and sales office in Singapore. This is following after establishing two offices in Indonesia over the recent 11 months. The group has plans to establish another office in China, in Shanghai or Hong Kong.

Chinese-Indonesian architect, Iwan Sunito, the co-founder and CEO of crown, has revealed Asian real estate has grown substantially over the last six months. The recent Singapore office is to become the company’s centre for South East Asian investments, catering to emerging property markets including Malaysia and the Philippines.

Furthermore, Oslo, Norway based Norges Bank Investment Management, intends to enter at least two Asian markets, implementing its global strategy to concentrate on ten to 15 investable cities throughout the globe.

Norges Bank’s real estate fund is one of the world’s major sovereign wealth funds with prime properties in Germany, London, New York, Paris and Washington DC, with a reported 11.8% investment returns last year, according to Bloomberg Businessweek.

The latest developments in Indonesia

Property developer, The Blacksteel Group, has announced plans to construct projects worth $300million in various Indonesian cities until 2018. The Lippo Group stated the company will concentrate on developing property within remote areas.

One project is the development of Lombok City Center (LCC), a mall in Mataram, the capital of the island. Funds of the project are from a variety of sources combined from money from investor’s, internal cash and bank loans and money from investors. The LCC is expected to be completed by 2016 with investment for the project estimated at approximately Rp1trillion ($86million). The Lippo group claim LCC will boost the image of West Nusa Tenggara to transform to a modern province providing bright investment prospects.

Furthermore, LCC is assumed to open employment opportunities in the region, aid in propelling consumer purchasing power and boost the regional economy. Representatives from Lippo have also claimed Blacksteel intends to develop property projects in areas that big developers have not yet engaged with; concentrating on second and third tier Indonesian cities. This is with Blacksteel plans to construct 17 malls over the next five years.

Higher wages together with steady economic growth over recent years has given greater purchasing power to consumers of Indonesia’s Eastern provinces.

The company is currently developing the Ambon City Center (Maluku province) and Ponorogo City Center (East Java) malls.

Blacksteel is independent of the Lippo Group.

Indonesia hotspot for hotels - Hilton opening several hotels throughout the country!

 

Jakarta’s booming economy associated with an active domestic travel market, has made Indonesia a hotspot for hotels. The Indonesian Hotels and Restaurants Association’s latest data forecasts that there will be 50,000 new supplies, raising classified rooms available in the country to over 200,000 by the end of this year, compared to 171,000 at the end of last year. If non-classified hotels are taken into account, the total of supplied rooms during 2013 stands at 431,000.

Commercial Property stocks have gained highest profit this year

The Indonesia Stock Exchange have revealed that investors who concentrated on property, infrastructure and banking stocks have gained the highest profit so far this year, standing out as Indonesia’s top performers. All sectoral indices contained within the benchmark stock index of Indonesia, referred to as the Jakarta Composite Index (IHSG) have also shown good performance. Indonesia's IHSG has grown by 16.14% during 1^st January to 26^th May, this year.

The property sectoral index of Indonesia grew by 28.15% between 1^st January and 26^th May, followed by the financial (up 23.62%) and infrastructure (up 17.99%) sectors. With the exception of healthy general economic growth, the property and infrastructure sectors gained a boost from the political agendas of two presidential candidates – Prabowo Subianto and Joko "Jokowi" Widodo. Both candidates target accelerated infrastructure growth, with improved quantity and quality of infrastructure, whereby investments in real estate and property become more attractive.

Jakarta leading property investment destination

Major development within the property sector of Jakarta during recent years has led to the capital city being acknowledged as one of the leading property investment destinations in the world.

Jakarta was recently titled the hottest spot for prime real estate in the world, for a second consecutive year, reported by Knight Frank property consultant.

The Global Cities Prime International Residential Index (PIRI) report, tracked the luxurious property markets of 30 cities around the world.

West and South Jakarta promising for high rise building development

 

Leading global commercial real estate firm, Colliers International, has expectations for South and West Jakarta to become high potential regions for the development of high rise buildings including offices. The firm explained that the capital’s infrastructure development plans, particularly new road construction, are the major reason as to why prospects of property development have become more promising within T.B. Simatupang (South Jakarta) and Kebon Jeruk (West Jakarta).

The Jakarta Outer Ring Road, which will link Kebon Jeruk (West Jakarta) and Ulujami (South Jakarta), is expected to aid businessmen in efficient travel. State-owned toll road operator, Jasa Marga, aim for the 7.67km road to be ready for operation by the end of June 2014.

T.B. Simatupang, known as the new Thamrin (the central street of Jakarta's Central Business District), is strategic in location owing to its proximity to the toll road (with direct links to seaports, airports and the Tangerang and Bekasi industrial estates, both situated just outside Jakarta).

Colliers International’s data suggest that base rental rates for offices within T.B. Simatupang will increase to USD $20 per square metre, each month, with purchasing prices starting at IDR30million (USD$2,608), per square metre.

Indonesia's Close Ties with the EU!

Today, an estimated 6,351 Europeans reside in Indonesia, with 13.8% settling in the country. This is according to the Ministry of Manpower and Transportation report on May 10^th. Indonesia’s economic boom and the advent of the European Union have led to increased cultural exchange and strengthened ties. According to the Indonesia Diaspora Network report December 2013, 185,512 Indonesians made the Old Continent their home; this is in addition to around 700,000 people of mixed or Indonesian descent within the Netherlands.

Commercial People Indonesia is now LIVE!

Commercial People are happy to announce that our Indonesian site is now LIVE!

So head on over to:

www.commercialpeople.co.id

Indonesia central to ASEAN - High potential for international trade

The three day World Economic Forum (WEF) on East Asia 2014 commenced in Manila yesterday, receiving over 600 leaders, entrepreneurs and thinkers together.

Issues will be discussed, including the optimal way to compose the 10 member Association of South East Asian Nations for the ASEAN Economic Community planned for next year, which is to allow freer flows of capital and lower trade barriers.

Collectively, the ASEAN member states structure one of the largest economies of Asia, with gross domestic product (GDP) at approximately $2trillion and a population of over 600million people.

Indonesia, the largest economy of South East Asia, may benefit from freer trade under the AEC. Its automotive sector rival’s Thailand’s, as it assembles and ships vehicles locally and internationally. Japanese vehicle producers have recently been raising their investments in Indonesia, acknowledging the demand for cars, motorcycles and trucks remains strong. The nation’s youth population, alongside low labour costs makes it an appealing investment location for overseas companies including the Foxconn Technology Group, who produce the iPhones and iPads for Apple.

Environmentally friendly Jakarta

Environmentally friendly Jakarta – Car free day.

Zero Energy Architecture is on its way to becoming the next hot trend in the sustainable energy market. It aims to design zero carbon design buildings that generate the same amount of energy used throughout the year.

These green buildings utilise a number of features to maintain the net zero energy consumption, such as solar panels, tinted windows absorbing only light and no heat, geothermal energy, as well as others, varying across different building designs.

'Indonesia's market has the highest potential of the Asia Pacific'

Sony Mobile Communications has claimed Indonesia’s market has the highest potential of the Asia Pacific, as the country’s middle class continues to rise. Indonesia was said to be a significant for Sony, owing to its growing population. As the middle class and population increases, so does the demand for smart phones. Sony aims to take this opportunity to grow its sales within Indonesia, using heavy investment only within Indonesia throughout the Asia Pacific.

A GFK study ranked Sony as second in the mobile phone market by value. Sony had received orders for over 1,200 Z2 phones since it was launched in early March this year.

Two new Ritz-Carlton getaways to open and attract business in Indonesia

The Ritz-Carlton Hotel Company is set to establish 15 new hotels by 2016, expanding its global footprint to 100 resorts and hotels. With upcoming openings ranging from a trendy city property in Cairo, to a seafront resort in Bali, the pipeline of new accommodations offers to travelers within both emerging and established destinations.

Cushman and Wakefield's worldwide retail report - Brought to you first by Commercial People

A global retail report from Cushman and Wakefield today, showed global trends continue to stay positive for shopping centre development. Crucial additions to supply are expected between now and 2016 within major emerging markets such as Brazil, China, India, Indonesia and Russia.

Signaling well for the property industry are the remarkable increase in ultra-high net worth individuals worldwide and improving global economic fundamentals, plus stronger consumer confidence. Global GDP is assumed to grow at a 3.4% rate, the highest since 2011. Household spending will contribute significantly to GDP gains, lead by spending in the U.S., E.U. and China. China is still assumed to record a global best at a 4.5% rise in consumer spending during this year, which will rise further to 5.1% next year.

A quick note for property developers in Indonesia...

The Ministry of Public Works of Indonesia plans to commence new regulations requiring property developers to construct wastewater treatment plants for all new developments containing over 100 housing units.

In other news, Indonesian officials are in an attempt to gain much interest in the country’s water PPP opportunities, by an international road show throughout the Middle East and North America.

Boost in Indonesian ceramic sales thanks to Indonesia's growing property sector

This year, Indonesia’s property sector has experienced 10 to 15% growth, which in turn has boosted ceramic sales! This is as the construction sector also grew at an annual 7% during 2009 to 2013. The revenue of the Indonesian ceramic industry is currently IDR34trillion (USD$3billion), with approximately 85% to be generated through domestic sales and the remaining 15% by international exports.

The Indonesia Ceramic Industry Association (ASAKI) have mentioned of a major correlation between property growth and national ceramic industry expansion. The association claims almost every household owns a type of ceramic product.

 

 

Indonesia is the sixth largest ceramics producing country in the world, following Brazil, China, Spain, Italy and Turkey. Indonesia quarters 80 factories for 35 ceramic producers, providing employment to approximately 200,000 individuals. Last year, the ceramic production capacity was 1.4million² daily.

Property investment volume increase in Asia Pacific

This year, Cushman and Wakefield assume that the Asia Pacific’s markets will continue to strive, parallel to the rising worldwide economy and growing domestic demand.

The gradual rise in property investment within the Asia Pacific supports the assumption – Cushman and Wakefield predict a 7 to 8% increase in the activity.

The Asia Pacific region saw an increase in investment within all areas of the Asia Pacific in 2013, with a 25% increase delivering a volume of US$568.6billion at the end of the year, equivalent to 48% of the global market.

Cushman and Wakefield concluded that rises would continue for at least two years as economic growth results in growing demand within the property industry, which in turn pushes rent higher.

Indonesia's Matahari Department Store gains profit rise of half

One of Indonesia’s major department store operators, the Matahari Department Store, has revealed their profit has risen by half during the first quarter of higher sales, owing to higher spending amongst middle income households.

This is as net income between January and March rose to Rp123.1billion ($11million) - an increase from Rp82.2billion during the same quarter last year. Same store sales (which have been established for at least a year), rose by 9.3%.

The Matahari Department Store claims they continue to be positive across trading for the rest year, as they experience continuing strength in top line growth motivated by the increased disposable income in their targeted customer group.

Matahari owns 125 stores across 61 cities of Indonesia.

Commercial People also advertise retail property – You can make profits too.

Jakarta is Indonesia's Number 1 Emerging City!

According to the latest from Chicago’s Emerging Cities Outlook (ECO) Index, Jakarta is now the number one rising city. The report looks at cities from low to middle income countries with a strong likelihood to progress over the next two decades, measuring from the business activity criteria, human capital performance and innovation indicators attracting business and talent.

Indonesia generally has been gradually more recognised by companies and their counterparts in foreign governments, as a growing influence in both global and regional business – as stated by a representative of AT Kearney. They continued onto explaining that Jakarta also has a significant demographic advantage alongside capital stability, security, environment and awareness contributing to the city becoming number one.

Jakarta is followed by Manila, the Philippines’ major financial, commercial and cultural hub, ranking second owing to its key advancement in human capital indicators, particularly in the availability and quality of healthcare. Kuala Lumpur, Malaysia was also in the top ten, based upon largely improved transparency and business activity and transparency. The ECO also reported the potential and probability of an emerging city to rise up and into the more prestigious Global Cities Index (GCI).

Beijing, China, stands out in making it on both the top tiers of the GCI and ECO Index, ranking 8^th and 12^th respectively. The city’s improved healthcare, increased business activity from Fortune 500 companies and performing engagement in politics, as well as its growing international education provisions and escalating IT sector, allowed it to climb six places from 2012.

Asia's Hotel Sector is Growing!

Just a reminder that Asia’s tourist and hotel sector is vibrant at the moment! Yes, that includes Indonesia! Bangladesh has the highest expected supply growth at a whopping +261.1% and Indonesia is one of the six Asian countries with over £30% room growth expected:

• Mongolia - +77.4%, with 975 extra rooms

• Myanmar - +67.5%, 4,109 rooms

• Sri Lanka - +51%, 5,204 rooms

• Bhutan - +46.7%, 78 rooms

• Indonesia - +35.7%, 53,100 rooms!

• Philippines - +30.7%, 13,078 rooms

Indonesia and Asia may need to you to search for your hotel commercial property on www.commercialpeople.co.id soon!

International Companies Setting Up in Indonesia

Red Hat Inc., an American company, is going ahead with plans to open an office. This is as the company claims Jakarta has large market potential for its products as well as business development opportunities. This is due to the growing country, population and economic projection, with an active open source community.

The January report of the International Data Corporation (IDC) Indonesia, also played a major factor in Red Hat’s decision to establish an office in Jakarta.

The IDC Indonesia reported that during 2013, a paradigm shift was experienced as it was acknowledged that IT played a crucial role in gaining productivity and efficiency amid near rising competition and costs.

The Indonesian government established a campaign, ‘Indonesia, Go Open Source’ (IGOS) during 2004, promoting the use of open source software, to prevent the use of illegal software.

It has been said that Red Hat Indonesia is focusing on financial service industries and government organizations this year.

Red Hat is just one of many international companies setting up bases in Indonesia – Simply because their market in all sectors are looking good. So why not start your business in Indonesia too? Invest and search for your property.

www.commercialpeople.co.id

Growth in Indonesia's Developer Companies

Bumi Serpong Damai (BSD), one of Indonesia’s largest developers, has announced company organic growth during the first quarter of 2014 at approximately 43%. This is as Rp1.25trillion organic revenue was gained, outperforming last year’s Rp877.54billion gain.

Approximately 44% or Rp549.36billion of this first quarter revenue, owes to the residential sector, rising by approximately 70% year over year. The sale of lots was the second largest generator of revenue, with Rp284.49billion.

 

The commercial sector sales took the lead in growth during the first quarter, growing by eightfold to Rp191.58billion compared to the Rp23.9billion during the same quarter last year.

 

Furthermore, Ciputra Development doubled its shop house and residential sales to Rp834.62billion rin the first quarter of the year compared to Rp481.92 during the same quarter last year.

 

Agung Podomoro Land saw its first quarter revenue grow from Rp1.12trillion last year to Rp1.16trillion; as it also saw its profit grow slightly from Rp272.4billion to Rp281.58billion.

 

Agung Podomoro Land’s marketing sales grew during the first quarter by 6% year over year to Rp1.83trillion. Harco Glodok, the company’s electronic shopping centre in West Jakarta, generated 32% of the total figure - followed by, alongside other complexes, the housing complex Orchard Park Batam of the Riau Islands generating 27.2%; Podomoro City Deli Medan super blocks of North Sumatra generating 12.7%; and Podomoro City Extension of West Jakarta generating 8%.

Why not search for your property too? Let it grow and gain.

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Doubletree Hilton opens in Jakarta

Hilton has finally opened a Doubletree hotel in Indonesia, which could only mean it must be the right to invest in hotels and leisure!

Diponegoro offers 253 rooms as well as seven events and meeting rooms, catering for up to 800 people. This is as well as a 24 hour business and fitness centres, all in the core of Indonesia, Jakarta.  

Agriculture is still important!

 

Two Indonesian companies have purchased Top End cattle stations in just over half a year. This goes to show that agriculture is still significant! This is as well as business in merchandise.

 

It is believed that Great Giant Livestock Co., the second largest cattle feedlot of Indonesia, has bought Willeroo Station from the Bruneian Sultan for $15.1million. This is as at the end of last year, the Japfa group of Indonesia, also known as Santori, purchased Riveren and Inverway for approximately $35million.

 

The Willeroo covers 170,000 in the South West of Katherine, estimated to hold a capacity of 22,000 cattle head. Following negotiations by Ruralco Property's Andy Gray and Steve Liebelt, the final deal included 17,000 cattle head.

 

A smaller property, also near Katherine is expected to be purchased by another Indonesian company in the near future, as Ruralco has commenced a marketing campaign to sell Moroak Station, also within the Northern Territory.

 

With agriculture still in play in South East Asia, why not search for your land or dream agricultural property at www.commercialpeople.co.id – Coming soon.

News just in Indonesia

Lippo Karawaci has reported a 35% rise for the first quarter net profit, thanks to its healthcare and residential units.

The largest listed property firm revealed a net profit of 339 billion rupiah {$29.4 million} for the first three months of the year up to March, an increase of 251 billion from the same period during the previous year.

The company’s revenues for its urban and residential development shot up to 53%, as the healthcare unit experienced a 29% increase.

Lippo Karawaci’s properties include residences, hotels, shopping malls and hospitals. The company has revealed that now is a good time to participate in commercial property, so visit www.commercialpeople.co.id soon – we advertise both commercial and residential, with something for everyone.

The latest from Indonesia

News just in, Landmarks, a Malaysian developer firm has just confirmed plans for a ‘waterfront resort city’ to be constructed on the famous Bintan Island. The $3.5 billion variety complex will cover 333 hectares with commercial, residential, as well as leisure and cultural facilities with the aid of Treasure Bay’s investment opportunities. The first phase of the project will commence shortly, focusing on the luxuries of villas, 5 star hotels, dining and bars, valuing $650 million. The project comes at the perfect time with the Indonesian government planning an international airport for the island by next year. This is all good news for Bintan as it will aid the economy, tourism and provide jobs as well as beautiful views for locals.

Why not join in on the excitement too? www.commercialpeople.co.id will also be advertising properties in leisure as well as hotel, villa and holiday home properties, so visit us soon.

Latest Jakarta news brought to you by Commercial People

 

Great news in Jakarta, the city has been labelled as the ‘hottest luxury property market in the world’ for a second consecutive year, as reported by renowned property consultant, Knight Frank. Jakarta’s market was labelled the hottest out of 30 cities in the world, based upon having the highest increase in prices for real estate – an increase of 38% during the year 2013. This increase was almost exactly similar to the increase during 2012.

More great news for Indonesia, Bali followed not far behind as the third hottest luxury property market in the world, with a 22% gain - Perfect timing for the exciting developments under construction, within the city.

 

Thinking of investing in property? It is evident that Indonesia is the best place to start, so check out www.commercialpeople.co.id - Coming soon.