Indonesia stands out as a prime global property investment destination, driven by its substantial market size and various favorable factors. Coordinating Minister for Economic Affairs, Airlangga Hartarto, noted that Indonesia, with its fourth-largest population worldwide at around 273 million people, is poised for increased property demand, particularly in the realm of smart and green cities. Airlangga emphasized the government's proactive stance in supporting the property sector through policies like the 100% Loan to Value (LTV) and Financing to Value (FTV) policies, aiming to stimulate investment and demand in the property market, effective until December 31, 2023.
The property industry serves as a key driver of Indonesia's economic growth, contributing 9.43% to the GDP in the construction sector and 2.40% in the real estate sector during the second quarter of 2023. Despite a 12.30% year-on-year dip in the real estate sector in the same period, there was a notable 15.11% year-on-year rise in the sale of large-sized houses. Furthermore, indices reflecting demand, such as the Commercial Property Demand Index for rentals (up 5.87% year-on-year) and the Commercial Property Demand Index for sales (up 0.36% year-on-year) in the second quarter of 2023, suggest potential positive momentum in the commercial property sector. Sustainable development is a key focus, exemplified by projects like the Capital City of Indonesia (IKN), designed as a green city to harmonize economic growth with environmental preservation. The government has demonstrated support for green development with regulations and policies encouraging environmentally friendly building practices.
Indonesia's commitment to fostering a conducive investment climate extends to the property sector, recognizing its substantial multiplier effects on related industries like construction, labor, and building materials. The country's vast market, coupled with government support and sustainability initiatives, solidify its position as a premier choice for property investment globally.
Source:
https://www.metrotvnews.com/read/N9nC6gR5-airlangga-indonesia-tujuan-investasi-properti-dunia
