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 boom in the coming years. With the recent elections ushering in the Prabowo-Gibran administration, analysts and industry insiders are buzzing with the prospect of a significant upswing. But will this be a calculated boom or a return to past cycles of volatility?

There’s undeniable optimism. Panangian Simanungkalit, a prominent property observer, points to some strong foundations: 

– Robust Economic Growth: Indonesia’s economy has remained resilient, with first-quarter 2024 growth reaching 5.11% and full-year projections ranging from 4.7% to 5.5%. This strong foundation bodes well for the property sector, which thrives on a healthy economic climate. 

– The 3 Million House Program: A key driver of optimism is the new government’s ambitious plan to build 3 million houses. This initiative will significantly reduce the current housing backlog and stimulate demand across the industry. 

– Focus on People’s Well-being: The Prabowo-Gibran administration’s focus on social and economic equality is encouraging. Initiatives like the free nutritious food program with a budget of IDR 71 trillion demonstrate a commitment to improving living standards, potentially leading to increased property demand. 

– Positive Psychological Impact: The government’s housing program injects a much-needed dose of confidence into the property development community. This optimism can translate into increased investment and project development.

Challenges and Collaborations 

The government’s housing program is viewed by property entrepreneurs as an indicator of potential growth in the coming years.

While the outlook is positive, achieving a zero housing backlog by 2045 requires a collaborative effort. The government’s target of building 1.25 million houses annually necessitates active participation from private developers alongside continued public investment.

Overall, the property sector in Indonesia appears to be on the cusp of a promising period. A robust economy, coupled with the government’s ambitious programs, provides a strong foundation for future growth.

Panangian emphasized that the property sector is the main driver of the economy and makes a significant contribution to development. According to him, Indonesia’s next administration must see this sector as a big opportunity to drive the economy. 

“It should be noted that the contribution of private developers in realizing the government’s vision is very large. This can be seen in the Jabodetabek area, where large-scale properties such as in Alam Sutera are driving the regional economy,” he said.


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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.

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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.