1

REAL ESTATE DEVELOPMENT:NEVER ENDING STORY

SOELAEMAN SOEMAWINATA

President of Indonesia Real Estate Association (REI)

President of International Real Estate Federation (FIABCI)-Asia Pacific Region

1. Indonesia Population 250 Million, Birth Rate 1,2%

(3 million) per year

2. 50 % of population live in Urban Area

3. 50 % of population are under 30 Years Old (Millenials

Productive Age Population)

4. Shifting From Low Class to Middle Class In Urban Area

1. Disruption, Digital Era (Positive and Negative Impact to Property

Industry

2. Shifting in life style and Basic Needs of Millenials Generation

3. Land for New development is Very limited in Urban Area

2

FAQ

Challenge

TANTANGAN DUNIA PROPERTI FACT AND CHALLENGES

Sumber: JLL

NEW TOWNSHIP DEVELOPMENT AREAFROM 1980-NOW

• Absorbing New Labour

Opportunities

• Generating Social and

Environmental Economic

Contributing to Government Revenues (TAX)

Generating New

Investment

Generating 174 Backward Supporting

Industries (LM UI Study)

PROPERTY INDUSTRY:

• REI 5.200 members

• Market Cap: 45 Developer In

Stock Exchange around U$ 20

Billion (35%), Equivalent to U$

57 Billion (100%),

Example:

1. IKEA in Alam Sutra

2. Motorcycle Manufacturing in

Jababeka

3. etc

Example:

1. Cement

2. Furniture

3. Consumer goods

4. etc

4

STRATEGIC POSITION OF REAL ESTATE BUSINESS

THE PROPERTY & REAL ESTATE CAPITALIZATION

IN INDONESIA STOCK EXCHANGES (2016)

No. Economic SectorsMarket Cap

Billion IDR %

1 Agriculture 118,308 2.5%

2 Mining 161,419 3.3%

3 Basic Industry & Chemicals 286,951 6.0%

4 Miscellnaeous Indusry 303,425 6.3%

5 Consumer Goods Industry 1,129,447 23.4%

6 Property, Real Estate, and Building Construction 370,714 7.7%

Property & Real Estate 280,043 5.8%

7 Infrastructure, Utilities, and Transportation 637,168 13.2%

8 Finance 1,230,932 25.5%

9 Trade, Service, and Investment 580,811 12.1%

Total 4,819,174 100.0%

Source: IDX

PROPORTION OF PUBLIC RIGHT STOCK

NO. CODE COMPANIES PUBLIC NO. CODE COMPANIES PUBLIC

1 APLN Agung Podomoro Land 16.0% 24 KIJA Kawasan Industri Jababeka 76.7%

2 ASRI Alam Sutera Realty 56.1% 25 LAMI Lamicitra Nusantara 7.1%

3 ELTY Bakrieland Development 91.0% 26 LPCK Lippo Cikarang 57.8%

4 BAPA Bekasi Asri Pemula 24.2% 27 LPKR Lippo Karawaci 60.0%

5 BEST Bekasi Fajar Industrial Estate 41.9% 28 MMLP Mega Manunggal Property 30.5%

6 BIPP Bhuwanatala Indah Permai 23.0% 29 EMDE Megapolitan Developments 26.3%

7 BIKA Binakarya Jaya Abadi 33.2% 30 MTSM Metro Realty 19.1%

8 BKDP Bukit Darmo Property 52.8% 31 MKPI Metropolitan Kentjana 22.9%

9 BCIP Bumi Citra Permai 68.1% 32 MTLA Metropolitan Land 25.8%

10 BSDE Bumi Serpong Damai 48.4% 33 MDLN Modernland Realty 65.7%

11 CTRA Ciputra Development 48.9% 34 NIRO Nirvana Development 46.0%

12 COWL Cowell Development 7.3% 35 PWON Pakuwon Jati 31.7%

13 SCBD Danayasa Arthatama 17.4% 36 GPRA Perdana Gapuraprima 32.3%

14 DART Duta Anggada Realty 7.0% 37 RODA Pikko Land Development 18.3%

15 DUTI Duta Pertiwi 11.4% 38 PLIN Plaza Indonesia Realty 15.6%

16 LCGP Eureka Prima Jakarta 67.7% 39 PPRO PP Properti 65.0%

17 FMII Fortune Mate Indonesia 24.8% 40 DMAS Puradelta Lestari 17.7%

18 GAMA Gading Development 47.5% 41 RBMS Ristia Bintang Mahkotasejati 24.8%

19 GMTDGowa Makassar Tourism

Development35.0% 42 RDTX Roda Vivatex 13.5%

20 GWSA Greenwood Sejahtera 20.5% 43 BKSL Sentul City 36.9%

21 OMRE Indonesia Prima Property 26.8% 44 TARA Sitara Propertindo 32.3%

22 DILD Intiland Development 40.9% 45 SMRA Summarecon Agung 62.4%

23 JRPT Jaya Real Property 6.3% 46 SMDM Suryamas Dutamakmur 3.4%

AVERAGES 35.0%

Source: IDX

GovernmentRegulation

Real Estate Scoop of Work

• New Town Dev’t• Industrial Estate• Tourism Area

Development

• Houses• Apartment• Hotel• Offices• Commercial, retail,

Mall• Hotel• Logistic Center

• Banking & Financial Policies• Investment Policies

• Law And Property Regulation

• Permit Regulation• Tax Policies

DemandGenerating

• Maturity of City• Population Growth

• Economic Base Industry

PROPERTY DEVELOPMENT

IN RELATION TO OTHERS SECTORS

GovernmentRegulation

• SPATIAL PLANNING

• INFRASTRUCTURE

• LAND

8

EffortsT

Challenges

TANTANGAN DUNIA PROPERTIEFFORT, CHALLENGES, OPPORTUNITIES

GOVERNMENT:

• Infrastructure Development (Toll Road, Public Transport, New Access

Road)

• De- Regulation in Progress : (Foreign Ownership),

• New Area Development

* New Tourism Destination (10 New Bali)

* New Special Economic Zone

• Global Economic Trade

War, Uncertainty Economic

Situation

• Slowdown Property Industry

in the latest 4 Years

• Currency Effect (Product

Price & Demand Antusiasm)

•

• Long term Investment

• Tourism Area

Development

• Affordable Housing

TIME TO INVEST !!!

OPPORUNITIES

SOELAEMAN

SOEMAWINATA

Welcome to FIABCI GLOBAL BUSINESS SUMMIT 2018

Bali, 5-9 December 2018Fiabciindonesia.com

Thankyou