Indonesia’s housing market is experiencing a surge in foreign interest as international investors actively enter the property sector. This growing momentum is reshaping both residential and commercial landscapes across key urban areas, with new developments, partnerships, and funding commitments signaling long-term growth.
Foreign Property Investment Spurs Growth
Foreign property investment is injecting new life into Indonesia’s real estate sector. One of the most notable entrants is Al Qilaa International Group from Qatar, which plans to invest US$2.5 billion or IDR 40 trillion in the construction of affordable apartment units. This major initiative will be carried out in phases, beginning with 50,000 units and expanding to another 50,000 in the next stage.
“This is a major investment. For the first phase, the budget will be around US$2.5 billion. That’s what we estimate. But it’s confidential, we can’t disclose everything,” said Sheikh Abdulaziz Al Thani, Chairman of PT Al Qilaa International Indonesia, during the Launching Ceremony of 1 Million Affordable Housing Apartments in Urban Areas at the Ritz Carlton Mega Kuningan.
He also confirmed that this is the group’s first project in Indonesia and that they are collaborating with Indosat Ooredoo, with development responsibilities handled by a consortium of Risjadson Land and PT China Communications Construction Indonesia.
Read More: Property Investment in Indonesia Thrives Despite Economic Woes
Indonesia Housing Market Gains Momentum
Experts view foreign participation as a positive force in raising the quality and diversity of property options. Ferry Salanto, Senior Associate Director of Research at Colliers Indonesia, noted that foreign investors typically target mid-to-high-end segments, offering more choices for buyers.
“Because the market will have more options. Foreign players typically target the mid-to-high segment, so within that market niche, there will be more variety. This will, of course, raise the quality of domestic property products as well,” Ferry explained during a Colliers Virtual Media Briefing as cited by Detik.com.
He added that these investors often bring the latest technologies, which encourages healthy competition with local developers.
“Overall, for the market and consumers, the impact will be more positive—even though competition might get fiercer,” he added.
East Jakarta Real Estate Attracts Global Players
East Jakarta real estate is emerging as a prime destination for international developers. In Cakung, PT Mitra Sindo Sukses, a subsidiary of PT Modernland Realty Tbk, is building the 370-hectare Jakarta Garden City. This large-scale project aims to become more than just a residential area; it serves as a long-term investment in urban living.
“Jakarta Garden City is not just a residential project; it’s an urban investment supported by modern city planning,” said Sami Miettinen, Residential & Commercial Director at PT Modernland Realty Tbk.
Urban Development Projects Raise Property Values
Jakarta Garden City incorporates 30% green space and prioritizes public facilities and infrastructure. This strategic approach has already attracted Japanese and South Korean investors through joint ventures and commercial infrastructure deals. The area now hosts AEON Mall, IKEA, and international schools like the Singapore Intercultural School, significantly enhancing its value.
“These awards prove that Jakarta Garden City’s concept has been tested and recognized by the global community. Beyond awards, investors are now showing interest,” said Sami. The project has received the FIABCI Prix d’Excellence Awards and was later honored for Best Township Masterplan.
Rising Investment, Growing Opportunities
The outlook for Indonesia’s property sector is optimistic, driven by increasing foreign interest, large-scale urban projects, and enhanced infrastructure. With global players actively participating, the market promises improved quality, more choices for buyers, and sustainable urban development. Local developers and international investors alike are poised to benefit from this evolving real estate landscape.
Source: detik.com
Image: Andrey Popov / Getty Images
