Indonesia property sector set for further growth

Indonesian property businesses, particularly in Jakarta, are viewing favourable conditions allowing for further growth next year.

However, it must be noted that the magnitude of the sector’s growth next year will not be great as that in the recent three years. Analysts agreed that significant growth would be seen, according to Amran Nukman, the Jakartan branch chairman of the Indonesian Real Estate Association (REI).

Chairman Nukman explained property businesses will continue to gradually grow next year. During 2012 we saw the sector rise from 40 to 60%. Next year, 10 to 20% growth is expected. This growth is considerably good with next year’s likely favourable economic conditions.

The optimism that the sector is to develop next year, takes into consideration the Jakarta administration’s support on property businesses in the city. 

Consumer confidence in economy!

Bank Indonesia's consumer confidence survey revealed Indonesian consumers were more optimistic during May 2014 compared to its preceding month. Consumer confidence in South East Asia's major economy increased to 116.90 during May from 113.90 during April. The confidence indicates that Indonesian consumers are more optimistic about the current Indonesian economy condition as well as conditions over the upcoming six months. The result during May was also higher compared to the same period during 2013 (at 112.8).

The survey revealed that in 12 out of 18 Indonesian cities, consumers showed more optimism in regards to the economy. The highest increase was found within the Bandung (9.3) and Bandar Lampung (10.2) cities.

Based upon spending, consumers who spend at least IDR5million (USD$423) per month, tended to show the largest growth in confidence.