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.

'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.

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.