Knight Frank Research Company back in 2012 found that number of rich people in Indonesia with total fortune above USD 300 billion was 1,029 people, one rank below Taiwan with 1,181 people. It is predicted in 2022, this figure will go five times bigger to 5,161 people. With economic growth remains at 5.7% - 5.9% until 2013, Indonesia remains prospective for following sectors to invest: Property, Retail, F&B and Palm Oil Plantation. As these sectors have continuously shown remarkable growth for the last few years.
Some say the hike of land prices in Jakarta and Bali's area was mostly triggered by high demand of property. In 2012, based on recent survey conducted by Knight Frank, the land price rose to 38% in Jakarta and 21% in Bali. This trend has beaten up its neighborhood countries such as Dubai, Miami and Sao Paolo which also recorded significant increase of 20%, 19.5% and 14% for each city respectively.
The huge demand of property such as housing, apartment, hotel, villa and commercial tower are extremely high with limited land available for sell. As a result, supplier tend to have strong bargaining power against buyer which determine the selling price of the above properties. Jakarta and Bali are considered as a barometer of property's business, it would triggers other cities to adjust their land with the new price.
In parallel with the above fact, Forbes as a leading source for business news and financial information has listed at least five Indonesian companies who have gained best predicate in terms of sales figure below USD 1 billion. These companies include:
Source: Detik.Com
Selling price of property's business is mostly controlled by private developer. People may invest in units of housing, apartment or other property business and they would sell it immediately on the next day or at least a week after. This condition has been well maximized by both local and global investors to buy property in Jakarta and other big cities in Indonesia.
As some people are haunted with the possibility of "bubble" in property's business, Bank of Indonesia calmed the market and said Indonesia has not yet turned into bubble as the credit supplied for property has only reached 14% in 2011 less lower compared to 1997/1998 where the credit property was around 20%.
With strong economic growth of 6%, GDP per ca pita of USD 3,910, investment grade status by rating agency, 28 years of average age and other factors, investing in property remains promising for both local and global investor. For further information about investing in property's business in Indonesia, Invisindo has conducted several studies such as Hotel, Department Store, Shopping Mall and Convenience Store. For further information, please contact us.
