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. 

Expanding Indonesia - More apartments being developed in response to demand

With continuing economic growth in Indonesia, giving increase to higher per capita GDP, the property market is still rapidly expanding, particularly in the larger cities including Jakarta (the economic and political centre of Indonesia). By next year, 46 new property projects will add almost 25,000 new apartments in Jakarta (‘strata title’, a term referring to the multi-level apartment blocks and horizontal subdivisions with shared areas), with a combined value of approximately IDR23trillion (almost USD$2billion).

With demand and values on the rise in Jakarta, vertical infrastructure is the most lucrative and efficient strategy to engage in property business. The majority of new apartments currently under construction, target Jakarta’s middle class segment affording to spend approximately IDR200 to 500million (USD$17,000 to 43,000), on an apartment. Analysts claim there are no signs of a property bubble arising in Indonesia. The main argument being that the majority of new apartments (around 70%), is purchased by end-users rather than speculative buyers.

Property shares gain today

Indonesian stocks grew for a second day today, before of the central bank’s monthly meeting on monetary policy.

The benchmark Jakarta Composite Index (JCI), gained 19.15 points (equivalent to 0.4%), to 5,132.39, expanding Monday’s 1.2% advance. Approximately 6.1billion shares valued at Rp5.5trillion ($466million), altered hands on the Indonesia Stock Exchange (IDX). This is still visibly lower than its year’s daily average turnover of Rp6.2trillion. Gainers were ahead of decliners by 181 to 103. Foreign investors accounted for Rp3.5trillion or 64% of the total trading value. They purchased Rp452.4billion in shares more than they sold.

Bank Indonesia, the Nation’s central bank is scheduled to announce its decision on interest rates this Thursday. Economists assume the central bank will maintain its policy rate at 7.5%. It has kept its rate unchanged since November following a gradual increase by 175 basis points in recent months.

All sectors with the exception of agriculture and miscellaneous, grew on the local bourse. Property shares as group, led sectors, with a 0.9% gain. Lippo Karawaci, one of the major property developers of Indonesia, increased 3% to Rp1,205. Surabaya based, Pakuwon Jati gained 2% to Rp445. Infrastructure stocks gained 0.9%. State-owned toll road operator, Jasa Marga contributed 1.6% to Rp 6,250.

Basic industry increased by 0.7%.The manufacturing unit of state controlled construction company Wijaya Karya, Wijaya Karya Beton gained 1.6% to Rp950.

The rupiah strengthened 0.4% to 11,677 against the US dollar from 11,728 on Monday, according to Bank Indonesia data. The yield on the government’s ten year note fell to 8.3541% from 8.3654%, as seen in data from the Indonesia Bond Pricing Agency.

Property groups focusing on healthcare

With health concerns growing amongst Indonesia’s increasing middle class, property groups are also increasingly looking towards the health care business to boost recurring income.

At present, there are 2,337 hospitals scattered throughout South East Asia’s most populous nation, of which just over 30% are private hospitals, as reported by the latest data from the Health Ministry.

Amongst the privately operated are Siloam International Hospitals, opearted by Lippo Karawaci, one of the major listed property developers in Indonesia.

Lippo Karawaci has risen to be the country’s largest private hospital operator following its investments in health care services starting to pay off.

Developers targeting university students

Numerous property developers have begun to look towards outskirts in proximity to campuses as they target university students for their projects.

The booming middle class of Indonesia has led to more families being able to send their children to respected universities at home.

Favoured universities are concentrated within Java, including the University of Indonesia (UI) in Depok, West Java; the Bogor Institute of Agriculture also in West Java; the University of Gadjah Mada, Yogyakarta, Central Java; the Surabaya Institute of Technology, East Java; the Bandung Institute of Technology; and Padjadjaran University – both situated within Bandung of West Java. 

Many students arrive from throughout the different islands of Indonesia, residing close by their chosen campus.

Previously, boarding homes were popular amongst students, owing to their affordability. But with their parents’ increasing purchasing power, many have turned to seeking apartments.

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.

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.

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.

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:

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.

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.

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.

Brand New Promo Video!

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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.