Source: Kompas.com | September 23, 2024

Commercial property and investment management company JLL assesses that Indonesia’s relatively stable economic growth and high levels of investor confidence will encourage growth in the property sector in Indonesia.

This is also supported by Indonesia’s ranking of 40th globally with a transparency index of 2.81, or in the semi-transparent category, in JLL and LaSalle’s 2022-2024 Global Real Estate Transparency Index (GRETI) report.

This index states that the more transparent a country’s property sector is, the more property investment will be achieved.

Farazia Basarah, Country Head, JLL Indonesia said, based on the JLL property transparency index, Indonesia is still ahead of the Philippines and Vietnam in Southeast Asia, but is below Thailand and Malaysia which are included in the Transparent category.

“With Indonesia’s relatively stable economic growth and a high level of investor confidence, the property sector in Indonesia reflects hopes for a better level of transparency in the future,” said Farazia in a press statement, Monday (23/9/2024).

According to him, amidst the still uncertain economic situation, the Indonesian property sector can still grow in 2023 and is projected to continue to grow in 2024 in line with the prospects for the Indonesian economy.

The investment value in the property sector in the first half of 2024 reached IDR 29.4 trillion, growing 6 percent from the same period last year. This shows that investor confidence in the property sector in Indonesia is still high.

“The demographic bonus, which is supported by expanding infrastructure coverage, adopting advanced technology and sustainability, will close the transparency gap in Indonesia,” continued Farazia.

Richard Bloxam, CEO, Capital Markets, JLL added, the focus on transparency for investors has never been greater in the global property market as external challenges such as geopolitical tensions and election cycles increasingly attract attention in the near future. “In the future, additional drivers such as artificial intelligence and clear sustainability reporting and liability standards will continue to encourage investors to seek greater transparency,” he said.