Indonesia



As the largest economy in South-East Asia, Indonesia has experienced strong economic growth, a reduction in government debt (from 83% in 2001 to less than 25% by end of 2011) accompanied by an upgrade in credit rating to “investment grade” by Moody’s and Fitch.

A favorable assessment of Indonesia’s economic strength was underpinned by gains in investment spending, improved prospects for infrastructure development following key policy reforms, and a well-managed financial system.

Strong consumer spending by Indonesia's rising middle class was the largest contributor to Indonesia's property growth, particularly in the residential sector. Indonesia has also become a destination which provides hotel developers and chains with significant opportunities for growth. Office supply is projected to continue growing. Major demand contributors, including multinational corporations and local companies were the oil and gas sectors and professional services consultants as well as banks, insurance companies and large holding companies actively looking for quality space for future expansions.

In the “Emerging Trends in Real Estate Asia Pacific” report by PWC and the Urban Land Institute, Jakarta was placed as the number one investment and development destination. Positive investment sentiment is expected to help the real estate market to perform.