Singapore Subsidiary Acquires Lippo's Rp 3.6t Asset

Singapore-listed Lippo Malls Indonesia Retail Trust Ltd. (LMIR Trust), subsidiary of Jakarta-listed developer Lippo Karawaci (LPKR), has revealed the acquisition of Rp3.6trillion (US$300.72million) Lippo Mall Kemang (LMK) from its sister company. This is in a transaction that will shift ownership of the assets towards a Singaporean entity.

LMIRT Management Ltd., manager of LMIR Trust, are to issue up to 301.37million consideration units (shares) representing 12.2% of the current shares to aid in funding the Lippo Mall Kemang acquisition from its current owner, Lippo Karawaci’s subsidiary, PT Almaron Perkasa (AP), according to Monday’s statement on the Singapore Stock Exchange website.

The statement went on to explain Rp3.18trillion of the LMK purchase is to be paid in cash as the remaining Rp420billion would be produced by way of the consideration units.

Relington Land

Hello, Commercial People of Indonesia! If you are in or near the heart of Indonesia, namely Jakarta, be sure to view Relington Land's listed properties on commercialpeople.co.id! Whether you're in search of a new home, or space for your business, Relington Land have both residential and commercial properties for sale. Visit http://www.commercialpeople.co.id/author/relington/ to find out more. 

Office space in Jakarta to increase

Foreign investors looking to expand their presence in Indonesia over the upcoming four years will find generous office options to choose from in Jakarta, according to a report from worldwide real estate services firm Colliers International.

Whilst total office space in Jakarta rose by just 1% during the first half of 2014, the capital will see an accumulated 10.7million square metres of new office space developed by 2018, up 51% from today‘s 7.1million square metres, according to the report released last Wednesday.

The projection assumes 74 buildings currently under construction or being planned will be completed on schedule. The increase will result in a decrease in office occupancy to under 90% from 96% at the end of the former half.

Second Marriott Courtyard opens in Bali

Marriott International has established its second Courtyard branded property in Bali.

Marriott Bali Seminyak’s new Courtyard is a 290 room hotel situated in the Seminyak area of the island, nearby the beach.

Described as an ‘urban oasis’, the hotel offers a variety of rooms with private terraces or balconies, as well as a bar and restaurant, a large lagoon-style pool, 24-hour fitness centre, a kids’ club, plus banqueting and conference space for up to 350 people. Free Wi-Fi is also offered and the hotel has shuttle bus services to the beach and close by entertainment areas.

Another novelty feature of the recent property is an electronic board in the lobby, informing guests on hotel facilities, nearby attractions, flight schedules, a local map and general news.

Marriott’s vice president for Indonesia, Australia, Malaysia and Singapore happily explained that Seminyak, Bali is one of the trendiest locations for business as well as leisure travellers.

Marriott Bali Seminyak is the second brand opening in Bali after the Courtyard by Marriott Bali Nusa Dua. It is the 31st Courtyard hotel in Asia.

Australian property group opens in emerging Indonesia

Indonesia has been targeted as a potential source of foreign investment for the Australian housing market.

Towards the House of Representatives’ Standing Committee on Economics inquiry into foreign investment within residential property, Nyko Property explained such investment was beneficial for the Australian economy. This is with the current policy framework essentially correct to ensure no abuses of the system.

British visitor arrivals reach record high

Indonesia has received 48,871 British visitor arrivals, a record number during the first quarter of this year.

The number of UK visitor numbers continued to perform during April when 19,809 Brits visited, an 18.2% year on year increase and the highest monthly figure for April since 2011.

The Ministry of Tourism and Creative Economy for the Republic of Indonesia assumes the strong figures to remain. From 8^th September, five direct flights a week from Jakarta to Amsterdam will be extended to Gatwick.

The UK Country Manager expressed delight in seeing growth in the number visitor arrivals from the UK.

The UK quarters one of the most significant international markets for Indonesia. These UK visitor numbers follow the opening of the destination’s first UK office, further demonstrating Indonesia’s commitment to the market and acknowledgement of its contribution to the country’s tourism economy.

For Commercial People, this seems like a good time to start investing, or selling, in hospitality! Visit www.commercialpeople.co.id!

Onyx hospitality becoming global, plans to overtake Indonesian hotel in 2016

One of the largest Thai hotel management firms, Onyx Hospitality Group plans to raise its presence amongst global players, with plans to operate 15 hotels domestically and overseas over the upcoming three years - Six Amari, four OZO, three Shama and two in The Mosaic Collection (TMC).

The firm also plans to increase its property portfolio total from 37 to 81 by 2018.

This year, they are prepared to overtake operation of Amari Dhaka in Bangladesh and OZO Pattaya of Thailand. Next year, Amari Residences Jomtien of Pattaya, Amari Dali of China, Amari Johor Bahru of Malaysia, OZO Kandy and OZO Galle of Sri Lanka, OZO Penang of Malaysia, Shama Beijing and Shama Chengdu of China, Pattaya Bay Resort, plus Nova Residence Pattaya will be operated. 

Onyx will continue to overtake more hotels during 2016, namely Amari Pecatu Bali in Indonesia and Amari Huidong and Shama Pazhou Guangzhou, China.

Presidential candidates to improve Indonesia transport

Both Prabowo Subianto and Joko Widodo of the Indonesian presidential election have pledged to spend big on transport links including roads, railways and ports – Benefiting retailers who struggle to reach customers within remote regions of the island nation. Whilst consumer companies within the fourth most populous country of the world, trailed builders as the benchmark stock index elevated by 18% this year, the Indonesia Food and Beverage Producers Association claim sales could be as much as 50% higher, if only access to rural areas were improved.

Aberdeen Asset Management, which oversees approximately $541billion, view consumer companies in Indonesia as a way of indirectly playing the infrastructure. This is as they claim any pro-infrastructure policy would make the economy more competitive, benefiting consumers.

London based research firm, Kantar Worldpanel forecasts Indonesia to gain 80 million new consumers over the upcoming 15 years. This is as Indonesia’s economy is forecasted to grow by 5.7% each year through 2016.

Indonesia stocks gain following election day

Asian stock markets were mainly higher today, as China's exports showed a slight pickup. This is as Indonesian stocks rocketed, despite contested presidential election results.

South Korea's Kospi rose 0.2% to 2,003.63, despite the central bank lowering this year's growth outlook. Hong Kong's Hang Seng increased by 0.2% to 23,227.91 and China's Shanghai Composite increased 0.1% higher to 2,040.92. Australian, Singaporean and Thai stocks also gained ground.

In Indonesia, the benchmark stock index exceeded by 2% following the first count of the country's presidential election revealing a narrow victory for Joko Widodo. Despite Prabowo Subianto’s refusal to concede, investors seem to believe the result was distinguished.

Indonesian elections, plus the latest from Commercial People

Hello, Indonesia! We hope you're enjoying the public holiday for this year's elections! According to Commercial People's sources, it seems Jakarta governor, Joko Widodo has a slight lead against ex-army general, Prabowo Subianto. It has been excitingly tense these past few weeks!

However, the public holiday does not stop Commercial People who are still hard at work! We have some upcoming listings for www.commercialpeople.co.id, so be sure to keep checking our website. Everybody is buzzing at Commercial People Global as we are preparing to launch in further countries. The next launch may be sooner than you think! So be sure to follow us on all our social media, to ensure you don't miss our launch days. Links can be found on the right side of our blogs :) Thank you for all your likes and follows so far.

We are also happy to announce that yesterday, Commercial People joined Instagram as @commercialpeople. We already have some great images as well as videos. If you list your property with our Platinum package, it may be featured on the ever popular mobile platform. So be sure to follow us on your smart devices.

The latest in Indonesia

The benchmark index of Indonesia reached near a four week high yesterday, as foreign inflows raised select large-caps such as Bank Rakyat and Telkom Indonesia. This is before the presidential election on Wednesday.

Investors are anticipating the outcome of the 9^th July election, with a more visible political outlook set to revive interest for assets, brokers and fund managers.

According to Fidelity's FF Indonesia Fund’s portfolio manager, the outcome of the election is not expected to alter or affect the fund's long-term positive view of Indonesia. This is despite the currently levelled race between the two leading candidates, as both Joko Widodo and Prabowo Subianto have very similar agendas.

Jakarta's composite index increased to 1.2%, its highest since 11^th June, building on a 1.3% gain last week, when the first weekly gain in four was marked on the market.

The Indonesian rupiah reached a five-week high yesterday.

New Holiday Inn Express in Bali

InterContinental Hotels Group (IHG) has opened a new, fourth Holiday Inn Express hotel in Indonesia. This is after just eight months since Holiday Inn Express was first established in Indonesia.

It is situated in trendy Kuta of the Bali Island, just 6km away from the airport. Named Holiday Inn Express Bali Raya Kuta, it accommodates 168 rooms, offering free Wi-Fi and breakfast. 24 hour fitness and a swimming pool are also available.

There are currently a total of nine Holiday Inn Express hotels throughout South East Asia, with 16 more scheduled to open in the region over the next five years. This with 11 opening in Indonesia alone.

Holiday Inn Express first launched in in the country last year, starting with the Holiday Inn Express Semarang Simpang Lima. This was then followed by the Holiday Inn Express Jakarta Thamrin and Holiday Inn Express Bali Kuta Square.

The new Holiday Inn Express Bali Raya Kuta will be joined by Holiday Inn Resort Bali Benoa during the final quarter of this year.

Bali's economy to grow this second quarter

Bank Indonesia for Bali and Nusa Tenggara have predicted that with this national school holiday coinciding with the fasting month, economic growth will be motivated for the second quarter of this year. This is compared to last year.

It was claimed that the diversion of foreign tourists to Bali from Thailand could expect a lift to Bali’s economy during this second quarter. He also felt that, based on surveys conducted by Bank Indonesia, consumer and business confidence would remain high in the second quarter.

Economists at Bank Indonesia also feel that Bali’s agricultural sector would positively contribute to the Island’s economy due to prevalent good weather conditions. This good weather is anticipated to positively impact Bali’s fishing sector.

Favourable conditions sustain Bali’s economy which Bank Indonesia predicts will grow at a rate of 5.2-5.8% during the second quarter of 2014.

Economic growth in Bali was at 5.43%.

Welcome to Villa Kintamani!

Commercial People are proud to welcome another addition to the group - Villa Kintamani! We look forward to the future and advertising their properties!

You can check out their current property listing on www.commercialpeople.co.id. While you're at it, be sure to register and subscribe to be the first in the know for all your property needs!

Here is our latest villa listing for sale:

Indonesia and Taiwan setting up Special Economic Zone in North Indonesian Island

Susilo Bambang Yudhoyono, the president of Indonesia has just approved a proposal to establish a special economic zone in one of Indonesia's Northernmost islands and where a joint development project with Taiwan is occurring, in Morotai.

The representative of the Taipei Economic and Trade Office Indonesia, announced that Indonesia and Taiwan will hold a meeting next week to discuss details of the joint development project, where one or two priority sectors will be selected to start off with - possibly agriculture and tourism.

New international shipping link news - Davao/General Santos Philippine cities to Tahuna/Bitung Indonesia

A group of traders from the Davao and General Santos cities, Philippines are prepared to go on a trade mission to Manado, North Sulwesi, Indonesia. This is in order to conclude the details of the Davao City/General Santos City to Tahuna/Bitung (Indonesia) shipping route services that would commence next month.

The Indonesia’s PT Kanaka shipping line of MV Beverly will depart from Bitung, Indonesia, on 18^th July for the prepositioning of container vans which will be utilised for shipping services. This is according to the Mindanao Development Authority (MinDA) director of public affairs and investment promotions. The ship has a capacity of 120 twenty feet equivalent units or TEUs.

Favehotel to open six more hotels in Indonesia

Archipelago International’s Favehotel brand is to continue to rapidly expand by launching six more properties across four Indonesian cities, namely Jakarta, Cilacap, Padang and Pekanbaru.

The capital, Jakarta will house three of the new Favehotels, commencing with an 84 room Favehotel Zainul Arifin, this coming September. A 110 room Favehotel Pasar Minggu will follow a year later, during the second quarter of 2015, before the final Jakarta Favehotel accommodating 100 rooms, Favehotel Grogol Jakarta, will open during the final quarter of 2016.

Also opening during the final quarter of 2016, will be a 120 room Favehotel Cilacap, Central Java. Sumatra Archipelago is to quarter the Favehotel Olo in Padang and Favehotel Sudirman in Pekanbaru, both during the final quarter of next year.

Therefore, Archipelago International will experience over double its collection of hotels within the country over the next few years. In fact, Archipelago International will be establishing 33 new hotel projects all by the end of this year, as next year is already set to establish a further 37 hotels.

Archipelago describes Favehotel as a ‘select service’ brand, with amenities including free Wi-Fi and flat-screen TVs in all rooms, often featuring cafes and meeting rooms. 

There are an existing 27 Favehotels situated throughout Indonesia and Malaysia, ten of which are within Jakarta and four in Bali. Archipelago also plans to launch the brand in the Philippines during the near future.

The big 6 Asian markets of 2014

Yesterday, BlackRock released its investment outlook for Asian equities and credit, where it was reported Indonesia, China, India, Japan, Korea and Taiwan are the significant markets to watch during the latter half of this year.

This is as it was claimed structural reforms remain to dominate the agenda and outlook for stock markets across the region.

China

The head of Asian equities at BlackRock claimed that the Chinese leadership continues to motivate the domestic reforms process, as there has been added value and risk as the year has progressed. This is particularly in the energy and industrial sectors.

India

The election win of the BJP may access India’s potential by rebooting its investment cycle. The decisive election result may improve government decision making and execution, which in turn would boost investment in energy and infrastructure, opening more employment opportunities.

Korea and Taiwan

According to a representative from BlackRock, Korea and Taiwan should be beneficiaries of global and improved export growth.

Japan

Japan remains to add liquidity even as the economy absorbs the increase in consumption taxes. Investors should expect more reform progress.

Indonesia

The market has delivered exceptional returns so far during 2014. However, Indonesia is currently under elections, with market positioning, valuations, plus the risk of negative surprise subsequent of the upcoming July elections adding some caution. Although, any sell-off following the election would be a buying opportunity.

Ensign Media announces Asia Villa Awards!

After nine successful years of the Property Awards, Ensign Media has announced the inaugural Asia Villa Awards will be held this year.

Acknowledging the finest luxury villas in the region, the awards will differ from the Property Awards as it celebrates single properties rather than developments, acting as an essential tool in aiding holidaymakers select the ideal property for their vacation.

Ensign Media’s CEO, Terry Blackburn, claimed Asia as being renowned around the globe for its high-quality villas of fine architecture, design and breath taking locations. Asia has an extensive range, with these awards celebrating the best of them to give visitors assurance that they are selecting an award winning villa for their stay in Asia.

The first edition of the Asia Villa Awards this year, will celebrate the best villas of Thailand, with the Indonesia edition following during the first quarter of 2015. Similar to the Property Awards, a rigorous and fair entry process will ensure that only the most deserving properties succeed. An independent panel of judges will select the award winners, with thorough site inspections of all shortlisted properties.

The first Awards will be presented at a cocktail reception in Phuket, this November. No nominations are necessary, with direct entries already open to villa owners and agents now.

International tyre maker opening plant in Indonesia

Taiwanese Cheng Shin Rubber Industry Company, one of the country’s leading tyre suppliers, have announced they will invest US$300million in constructing a plant in Indonesia.

The construction is scheduled to commence early next year, with operations expected to begin production towards the end of the same year. The company is to target the Indonesian domestic market rather than exports, as revealed by the Cheng Shin President during a yearly general meeting for share holders.

The automotive market of Indonesia is said to be rapidly growing, encouraging Cheng Shin's clients to request towards the Taiwanese supplier to establish local production lines.

It was informed that the company's shareholders with Cheng Shin, plans to use the Indonesian market as a springboard to enter other Muslim markets.

A fund raising campaign is also to aid for the Indonesia investment.

When the Indonesia factory becomes operational, there are plans for a wider global production base in Asia, including plants in China, Taiwan, Thailand, and Vietnam.