Telkom property project

Perusahaan Perseroan PT Telekomunikasi Indonesia Tbk (Telkom), Indonesia's major telecom firm has plans to spend up to Rp1.1trillion ($95.49 million), or around 5% of its total capital expenditure towards a property project. This is according to Finance Director, Honesti Basyir.

Through the firm’s PT Graha Sarana Duta unit, plans are to utilise its 2million square metres of unproductive land for commercial property use.

Earlier the firm announced plans to develop 19 hotels, retail property plus other multifunction property projects over the upcoming five years.

Fashion meets property development

During a recent interview with the Bangkok Post, Tom Light of FashionTV has revealed company plans to place seal on hotels, following success of restaurants and cafes throughout Asia.

Asia is currently one of the most fashion conscious hotspots in the world, with fashion being so much more than clothing and accessories – it is a part of lifestyle choices, from where is a trendy location to eat and even where to stay overnight during travels. Asian cable channel, FashionTV has grown over the last 15 years to become a worldwide marvel, up to date with the very latest in fashion. It has extended its reach in delivering its approval seal (plus distancing Diamond F logo), to clubs and cafes across Asia. The next phase in the plan is to develop a range of hotels for the trendiest people to stay in the most elegant of locations.

The new property developments are to extend beyond Asia to Dubai and India and is to feature residential towers alongside the hotels. Plans are to deliver the same approach towards fashion to the property design, to be circulated across some of the world’s hottest locations.

The plan is comprehensive and ambitious, with 35 projects already scheduled to be launched before the end of 2020. Bangkok Interior Design Studio Marques and Jordy have a diamond inspired design construction for the F Hotel Dubai, finishing with lavish facilities.

The vice-president of business development, Tom Light, explained of being in discussions for expansion within regions, particularly Indonesia, China, Singapore and Thailand. There are a number of club and cafe locations in Bangkok, Shanghai, Shenzhen, Singapore and Tokyo, plus the process of opening in Guangzhou, Pattaya and more. This is just one indication of FashionTV’s popularity in Asia, tuned to over 200million TV viewers, giving confidence to expand into the region’s best hotels.

Property developer profit news

The property unit of Sinar Mas Land, Bumi Serpong Damai (BSD), reported a 73% increase in profit for the first six months of this year, owing to a stake purchase in property developer, Plaza Indonesia Realty.

According to the company’s filling to the Indonesia Stock Exchange (IDX), net income increased to Rp2.6trillion ($226million) within the January to June period, from Rp1.5trillion last year.

In a different statement, BSD owed the rapid profit growth to its purchase of 34.22% of Plaza Indonesia, during April, making it the major shareholder. The company runs the Plaza Indonesia shopping mall, Central Jakarta.

However, BSD’s revenue depleted by 17% to Rp2.4trillion.

Meanwhile, other property developer, Pakuwon Jati’s net income increased by 3% to Rp905.7billion. Revenue grew by 13% to Rp1.8trillion.

Based in Suabaya, Pakuwon aims for its revenue to increase by between 10 and 20% this year. Revenue reached Rp3.03trillion during 2013.

Property leads allocating capital expenditure

Indonesia’s economy boom has had a positive impact upon the property sector, with numerous property developers assigning considerable funds towards capital expenditure (capex), used to expand business, develop new projects or to procure land.

One of the country’s major real estate developers, PT Bumi Serpong Damai Tbk, has this year assigned Rp3trillion (US$25.6billion), towards capex for finance infrastructure development and land acquisition projects.

Additionally, the developer also intends to develop property projects in Serpong, Tangerang plus other areas. The funds are also planned to be used as working capital.

By 19^th June, PT Bumi Serpong Damai Tbk recorded Rp28.017trillion market capitalisation. They are currently working on a number of projects, such as the AEON shopping mall and Saveria Apartment in Serpong, the Grand City housing estate in Balikpapan in East Kalimantan and Indonesia International Expo and Convention Center (IIEC).

Plans to enable foreigners to purchase property in Indonesia

Congratulations to Joko Widodo who was yesterday announced as the new president. During his campaign in the lead up to the Indonesia presidential election 2014, Joko Widodo, widely known as Jokowi, announced intentions to allow foreigners to purchase apartments. This is in an attempt to increase tax revenues; and investor demand may begin to rush towards low prices in the luxury market.

If plans are to go forward, foreign investors will be able to purchase apartments worth at least 2.5billion rupiah in the Jakarta capital, as well as other major cities and within Bali island. Foreigners are currently barred from direct purchases of Indonesian property, which has led to illegal transactions via proxies, therefore enabling them would allow a luxury tax to be imposed on sales.

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.

Condominium numbers increasing

Worldwide real estate services firm, Jones Lang LaSalle expects Indonesian condominium sales to see a record-breaking figure this year, signalled by Jakarta’s current trend, where people remain to shift to living in apartments rather than detached or attached single-unit houses. Jones Lang LaSalle’s head of research, have announced both developers and buyers have shown growing interest towards developing and purchasing property.

The real estate firm’s report reveals that Indonesian developers established approximately 4,000 new condominium units between April and June this year (such as West Jakarta’s St. Moritz, developed by Lippo Group, plus Central Jakarta’s Raffles Residence, developed by the Ciputra Group). Furthermore, more than 7,400 units have been sold during the recent six months.

Trade Expo Indonesia Towards Green Business

The Ministry of Trade is hosting the largest trade show of Indonesia - the 29th Trade Expo Indonesia (TEI), from 8^th – 12^th October later this year. The international exhibition is to be held in the Jakarta International Expo (JIExpo), with a ‘Towards Green Business’ theme.

This theme follows President Susilo Bambang Yudhoyono at the 2^nd ASEAN Summit which took place last 19^th June at Nadi, Fiji Islands, as a statement was made referring that the green economy is significant for Indonesia’s resilience. Green economy has become a new economic paradigm, promoting economic progress without harming natural wealth and resources.

TEI 2014 will be hosted in an area covering 40,000m², expecting 2,000 exhibitors targeting an audience of 10,000 people. The products to be on show will include main export commodities, prospective exports commodity, as well as other export products. This is as well as products and services from well-trained labour, including professional, hospitality and construction services.

These products will highlight the continuity of the company in operating a green business, made with focus towards social environment aspects and so products do not just meet the standards of aesthetics and function. Another key factor to be considered is fair trade. This aspect, amongst others, is shown by fairness to all interested and Indonesian businessmen’s ability to meet fair trade’s international standards.

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.

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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.

Property News - Majestic Land Developments

The chief of Majestic Land property developer has announced works on a portfolio of new property projects for the upcoming five years, beginning this year.

The projects are worth Rp40trillion ($3.45billion) and will involve the development of residential, commercial and hospital buildings.

Majestic Land are optimistic the property business will maintain good prospects. Which is why they have continued to expand into differing property segments.

One project includes apartment development in Yogyakarta where the company are also aiming to develop a condominium hotel to be titled the Best Western Condotel upon 1,682 square metres of land.

According to Majestic Land, of the 124 fully furnished condotel units still under construction, 89% had already been sold. It is not unusual for property developers to sell units of a project prior to completion of construction, to aid in financing the development. The new property unit owners are to take possession in the next 15 months.

Other Majestic Land projects include a condotel in Bandung, West Java, as well as an office tower in Jakarta, plus a villa development project in Bali. These projects all differ in value, with the major one being the office tower in Jakarta, estimated to cost Rp870billion.

Majestic Land also develop property elsewhere in Asia.

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.

Foreign developers keen on Indonesia's property market

A number of foreign developers have laid eyes on Indonesia’s property market owing to the country’s massive population and economic growth of 5.5% - the highest of South East Asia.

It has been reported, investors from China, Korea, Malaysia and Singapore have expressed interests in extending property businesses to Indonesia. The property project types they are interested in, vary from residential projects including apartments to commercial projects, such as shopping centres and industrial estates.

For example, the Singaporean based Pacific Star Holdings Pte Ltd., intends to manage one property project in the Sudirman Central Business District (SCBD) in Jakarta and another one in Bali.

This is as they cited data from the United States Trade Department, highlighting that Indonesia quarters the world’s fourth-most populous country with 253.60million people, as the reason for investing towards the country’s property sector. It selected Jakarta as the project site, owing to the city’s profitable nature for property development.

The public sector and small and medium sized enterprises are the largest and most robust markets

US based ICT company, Hewlett-Packard (HP) is targeting customers from small and medium sized enterprises (SMEs), together with the public sector in Indonesia, as these market segments are said to be the nation’s most robust.

Jim Merritt, the senior vice president of HP and general manager of Enterprise Group for Asia-Pacific and Japan explained the company regards developing markets such as Indonesia as an engine of growth.

It was claimed Indonesian SMEs were the largest private sector market for HP products, following commercial retail accounts and global companies. By size alone, the SMEs are rapidly growing.

According to Indonesia’s Cooperatives and SMEs Ministry data, the SMEs compose almost 90% of all Indonesian businesses. 97.2% of domestic employment is also provided, generating 57.9% to the country’s gross domestic product (GDP).

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.

US congratulates Indonesia on 'historic' election

The US has congratulated Indonesia on a ‘historic’ presidential election. This is as both Indonesian candidates, namely Prabowo Subianto and Joko Widodo, claimed that unofficial early counts revealed they are winners.

The White House praised Indonesia's high voter turnout - as a spirited election campaign with strong participation - these factors underscored Indonesia as a developing democracy.

The administration of Washington also highlighted the fact that the US and Indonesia are the world's second and third largest democracies respectively.

President Obama is also looking forward to continuing the Comprehensive Partnership, established during 2010 with the new president and the new parliament.

However, it is now unlikely that more will be heard from the White House in regards to the election, this is until after the official results are released later this month. No doubt, there will be congratulations from Washington to the winner.

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.

Industry investment opportunities from Asian Urbanisation

Industry players of a banking forum today, claimed they see massive business opportunities from Asian urbanisation. This is with a researcher having emphasised aspects including agriculture, consumer products and infrastructure.

The infrastructure sector of the region on its own calls for 2.4 trillion U.S. dollars of investments from now to as far as 2030, as claimed by a senior representative of the McKinsey Global Institute during the DBS Asian Insights Conference. The agricultural sector is also anticipated to consolidate, generating major business opportunities.

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!

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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.

MNC Land - $3billion entertainment centre expansion

MNC Land plans to spend up to $3billion on expanding its integrated Sukabumi, West Javan integrated entertainment centre. The MNC land being the property development unit of Indonesian conglomerate MNC Investama.

Groundbreaking will begin during August, with villas, hotels, theme parks, alongside a variety of other supporting infrastructure for a recreational area.

MNC is also presently seeking a partner in developing the project, due to the magnitude of the project.

Included will be Lido Lake Resort and Golf, to cover approximately 2,000hectares and estimated to be fully completed within 20 to 30 years.

Indonesian surplus!

It has been announced in Indonesia today that its trade balance altered back to surplus during May, reporting a burst of further positive data - a boost for the top economy of South East Asia following a recent slowdown.

According to the statistics agency, the surplus was slightly higher than anticipated at $70million, following a deficit of nearly $2billion during April as exports were affected by a controversial mineral ore export ban.

The trade balance is especially closely observed by investors, with economists claiming the surplus is efficient during the high uncertainty prior to an increasingly tense presidential election next week.

Manufacturing activity also expanded, as reported by HSBC's manufacturing purchasing managers' index for Indonesia.

It rose to 52.7 during June, from 52.4 during the month before, the highest reading since the survey begun April 2011. The reading above 50 signals growth and as a reading below 50 would be contraction.