INDONESIA’S OMNIBUS LAW ON JOB CREATION IS EXPECTED TO EASE REAL ESTATE OWNERSHIP RULES FOR FOREIGNERS
JAKARTA, Indonesia — New opportunities may arise due to the relaxation of recent policies on property ownership rules for foreigners in Indonesia, which underpinned the timely panel discussion at the PropertyGuru Indonesia CEO & Leaders Forum held on 16 May 2023 at the Langham Jakarta.
The high-level forum was attended by top industry and government leaders, and was organised by Rumah.com, Indonesia’s leading property portal, in collaboration with PropertyGuru For Business and PropertyGuru Asia Property Awards.
Indonesia braces for positive impact from the Omnibus Law on Job Creation, which passed in March 2023. The law aims to generate jobs, attract foreign and domestic investment, and stimulate the economy.
The discussion on the new law at the Indonesia CEO & Leaders Forum precedes the 9th PropertyGuru Indonesia Property Awards gala celebration, which recognises and highlights the achievements of the country’s finest real estate developers, including the companies behind its major industrial developments, on an international platform.
Speakers at the forum included Marine Novita, country manager of Rumah.com, who acted as moderator. She was joined by Ely Baharini, head of Regulation and Legislation Division, Central Board of Association of Land Deed Officials/PP IPPAT; Ignesjz Kemalawarta, deputy head of DPP REI for Property Rules and Regulations; Suyus Windayana, director general of Land Rights Determination and Registration (PHPT) at the Ministry of Agrarian and Spatial Planning (ATR BPN); and Winston Lee, director of Special Projects at PropertyGuru Group. The forum opened with special welcome messages from Paulus Totok Lusida, chairman of Real Estate Indonesia (REI) Real Estate Association of Indonesia, and Jules Kay, general manager of PropertyGuru Asia Property Awards and Events.
Among the many provisions of the 2023 Omnibus Law are the relaxed guidelines for the hiring of foreign labour and the taxation of foreign nationals who earn income abroad, which could act as stimulus for property ownership. The law is also expected to aid in the recovery of the tourism sector and the rebounding number of tourist arrivals in Indonesia.
Indonesia continues to receive an influx of foreign investment, with several multinational companies recently establishing manufacturing and industrial plants in the country, according to research from Property Report by PropertyGuru, the official magazine of the Awards.
According to the Rumah.com Property Market Report Q2 2023, all indicators suggested recovery from year-end seasonality throughout Q1 2023. The demand for apartments stands out, growing 15% quarter-on-quarter—better than landed housing, amid stagnant growth in price compared to Greater Jakarta regions.
Marine Novita said: “Indonesia is entering the post-pandemic world with well-earned confidence. The country has proven to be resilient when facing turbulence in 2022. We have a young, optimistic demography equipped with legal and institutional reformation throughout Joko Widodo’s era. The Omnibus Law, introduced in 2021, covers a lot of easing for investment and at the same time provides much-needed assurance. As we approach the election year, Indonesians are experiencing and celebrating a considerable number of new infrastructure developments, the change of the capital city, and new means of mobility in day-to-day life. We are ready and enthusiastic to enjoy this new lifestyle and offerings from innovative developers.”
Searches for residential properties priced above IDR1 billion continue to increase, signifying that consumer purchasing power in the country is still maintained, according to the Indonesia Property Market Report Q1 2023 released by Rumah.com. The site’s residential property price and supply indices registered moderate annual increases of 5.8% and 6.8%, respectively, in the fourth quarter of 2022.
Bob Koppes, director of strategy for Data and Software Solutions at PropertyGuru Group, who made a special presentation at the forum, added: “Utilising our consumer demand, supply and pricing data to derive actionable insights is incredibly powerful for the Indonesian property market as it, among other things, allows developers to optimise advertising targeting and more effectively promote to local and international property buyers.”
In support of achievers in Indonesia’s dynamic real estate market, the exclusive gala dinner and ceremony of the annual PropertyGuru Indonesia Property Awards will be held at The Ritz-Carlton Jakarta, Pacific Place, the official venue of the Awards, on Friday, 15 September 2023. Eligible entries are accepted online until 7 July 2023 via asiapropertyawards.com/
Vivin Harsanto said in a statement: “Indonesia’s property market remains resilient, and the lifting of social restrictions has further fuelled an uptick in market activity. This is propelled by positive demand for landed homes from end users and a healthy appetite for modern warehouses from third-party logistics and FMCG. The real estate industry is also benefiting from expanding toll road networks and transport infrastructure projects. Against this positive backdrop, we are very excited about the 9th PropertyGuru Indonesia Property Awards as we are seeing property seekers in the country become more knowledgeable in choosing products and projects, and reputable and award-winning developers tend be on their shortlist.”
Jules Kay said: “We have seen the property market in Indonesia diversify extensively in the eight years that we have held the gala celebration here. We are proud to recognise the Indonesian real estate sector’s towering achievements and showcase them to an international audience.”
Organised by PropertyGuru Group, the 9th PropertyGuru Indonesia Property Awards programme is supported by platinum sponsor Kohler; official venue The Ritz-Carlton Jakarta, Pacific Place; official portal partner Rumah.com; official magazine Property Report by PropertyGuru; official publicity partner Publicom Communications; media partners Detik Finance, Kompas, and Top 10 Indonesia; and official supervisor HLB.
PropertyGuru For Business is a new brand from PropertyGuru Group, dedicated to empowering businesses through a unified suite of proprietary solutions to enterprise customers in all its markets. A destination for every developer and business partner’s needs, PropertyGuru For Business has a host of enterprise solutions, including a high-quality developer sales enablement platform, FastKey, DataSense, ValueNet, Awards, events, and publications across Asia.
For more information, please visit www.propertyguruforbusiness.com.
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