Colliers: Indonesia’s Property Investment Opportunities for 2023

Bisnis.com are reporting that Colliers, one of the country’s leading property consultants, has seized a number of property investment opportunities in Indonesia, despite the negative sentiments globally, both with regard to the economy and geopolitics.

Steve Atherton, Head of Capital Markets and Investment Services for Colliers Indonesia, said that Indonesia is also facing the challenge of rising interest rates, inflation in construction costs, and fears of a recession threat.

However, the condition is still more stable when compared to other countries.

“Indonesia has lower inflation, lower interest rate increases, and less currency devaluation compared to markets such as the United States and Europe,” said Atherton in a statement, quoted Friday (9/12/2022) by Bisnis.Com

Colliers Indonesia sees that many developers and investors are refocusing their development efforts on housing or expanding into new assets, such as logistics, data centers or other horizontal projects.

On the other hand, most large-scale vertical building developments delay new launches until there is evidence of real demand and some reduction in the environment of rising interest rates and construction costs.

“The office market and apartment market have struggled for the last two to three years, and the pandemic created dislocation in the local property market, especially in hotels and retail,” he explained.

Binis.Com report that Atherton saw the same conditions applying to US and European markets with most of them making adjustments to asset prices as a result of reduced demand by applying lower rental rates. “Instead of changing prices, most vertical building owners in Indonesia are trying to hold on to their assets and wait out the stormy weather,” he said.

Apart from that, Atherton sees a glimmer of hope, because Asia Pacific is the region most optimistic about economic growth. As many as 53-percent of real estate investors in Asia Pacific expect a positive impact from this sentiment.

Even though offices in Indonesia have stagnant growth, Colliers sees that there are three top sector preferences for Asia Pacific investors for 2023, namely offices (68-percent), industry and logistics (65-percent), and multifamily/ build-to-rent (42-percent.)

Source: Bisnis.Com

Latest Article
Minister: Downstreaming Leads to a Golden Indonesia
Speaking at a public lecture at the State Institute of Public Administration (IPDN) in Sumedang, West...
Indonesia Looks to Complete ICA-CEPA by Year-End
Indonesia’s Trade Minister Zulkifli Hasan is targeting to complete the Indonesia-Canada Comprehensive...
Minister Urges TikTok to Invest More
According to reporting from Tempo, Indonesia’s Minister of State-Owned Enterprises (SOE), Erick...
Indonesian Economy Grows 5.11%, Top 5 in G20
Indonesia’s economy is doing well. It grew at a healthy 5.11% in the first quarter of 2024, compared...
Indonesia’s Property Sector is Predicted to Improve under New Administration
Indonesia’s property market has a history of riding economic waves and it is poised for a potential...

Andrzej Barski

Director of Seven Stones Indonesia

Andrzej is Co-owner/ Founder and Director of Seven Stones Indonesia. He was born in the UK to Polish parents and has been living in Indonesia for more than 33-years. He is a skilled writer, trainer and marketer with a deep understanding of Indonesia and its many cultures after spending many years travelling across the archipelago from North Sumatra to Irian Jaya.

His experience covers Marketing, Branding, Advertising, Publishing, Real Estate and Training for 5-Star Hotels and Resorts in Bali and Jakarta, which has given him a passion for the customer experience. He’s a published author and a regular contributor to local and regional publications. His interests include conservation, eco-conscious initiatives, spirituality and motorcycles. Andrzej speaks English and Indonesian.

Terje H. Nilsen

Director of Seven Stones Indonesia

Terje is from Norway and has been living in Indonesia for over 20-years. He first came to Indonesia as a child and after earning his degree in Business Administration from the University of Agder in Norway, he moved to Indonesia in 1993, where he has worked in leading positions in education and the fitness/ wellness industries all over Indonesia including Jakarta, Banjarmasin, Medan and Bali.

He was Co-owner and CEO of the Paradise Property Group for 10-years and led the company to great success. He is now Co-owner/ Founder and Director of Seven Stones Indonesia offering market entry services for foreign investors, legal advice, sourcing of investments and in particular real estate investments. He has a soft spot for eco-friendly and socially sustainable projects and investments, while his personal business strengths are in property law, tourism trends, macroeconomics, Indonesian government and regulations. His personal interests are in sport, adventure, history and spiritual experiences.

Terje’s leadership, drive and knowledge are recognised across many industries and his unrivalled network of high level contacts in government and business spans the globe. He believes you do good and do well but always in that order. Terje speaks English, Indonesian and Norwegian.

Contact Our Consultants

Ridwan Jasin Zachrie

CFO of Seven Stones Indonesia, Jakarta

Ridwan is one of Indonesia’s top executives with a long and illustrious career in the financial world. He holds several professional certifications including being a Certified Business Valuer (CBV) issued by the Australian Academy of Finance and Management; Broker-Dealer Representative (WPPE); and The Directorship Certification for Directors and Commissioners, issued by the Indonesian Institute of Commissioners and Directors.

His experience includes being the Managing Director at one of the top investment banking groups in the region, the Recapital Group, the CFO at State-owned enterprises in fishery industry and the CEO at Tanri Abeng & Son Holding. He’s also been an Independent Commissioner in several Financial Service companies and on the Audit and Risk Committee at Bank BTPN Tbk, Berau Coal Energy Tbk, Aetra Air Jakarta as well as working for Citibank, Bank Mandiri and HSBC. His last position was as CFO at PT Citra Putra Mandiri – OSO Group.

Ridwan has won a number of prestigious awards including the Best CFO Awards 2019 (Institute of Certified Management Accountant Australia-Indonesia); Asia Pacific Young Business Leader awarded by Asia 21 Network New York USA (Tokyo 2008); UK Alumni Business Awards 2008 awarded by the British Council; and The Most Inspiring Human Resources Practitioners’ version of Human Capital Magazine 2010.

He’s a member of the Board of Trustees of the Alumni Association of the Faculty of Law, Trisakti University, Co-Founder of the Paramadina Public Policy Institute and actively writes books, publications and articles in the mass media. He co-authored “Korupsi Mengorupsi Indonesia” in 2009, which helps those with an interest in understanding governance in Indonesia and the critical issue of corruption. Ridwan speaks Indonesian and English.

Per Fredrik Ecker

Managing Director of Seven Stones Indonesia, Jakarta

Per is the Managing Director of the Seven Stones Indonesia (SSI) Jakarta office and has more than 25-years’ experience in Indonesia, China, and Western Europe. He previously worked in senior management positions with Q-Free ASA, Siemens AG, and other companies in the telecom sector. Over the last six years, he has been the Chairman of the Indonesia-Norway Business Council (INBC) and recently become elected to be on the board of EuroCham Indonesia.

His most recent experience is within Intelligent Transport Solutions (ITS), Telecom, and other sectors within the Indonesian market. He is today through his position in SSI and by representing Norway Connect, promoting Nordic and European companies that would like to explore business opportunities in the Indonesian market. He’s also playing an active role to help create the Nordic House concept in Jakarta that will provide an excellent platform for Nordic companies entering Indonesia, where they’ll find a community that can offer support with trusted information and affordable services to enter this market.