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Industrial Property

Indonesia’s Industrial Property Sector: Rising Supply and Demand

Indonesia’s industrial property sector has been subject to challenges as industrial investors have hesitated and delayed their entry or expansion due to greater uncertainty in the local and global economic climate.
Land Acquisition

Indonesia’s Land Acquisition Laws; On Paper Only?

Underpinning Indonesia’s infrastructure development challenges are the country’s land acquisition laws which while on paper have offered the legal grounding to acquire land in the public interest since 2012, the gap between what is on paper and how such measures are implemented remains vast.

Concrete Developments in Indonesia’s Infrastructure

Indonesia’s new administration under Mr Joko Widodo has been nothing if not vociferous in announcing its plans to focus on infrastructure development to spur continued growth. Recent measures to boost the availability of funding and address the shortcomings of previous land acquisition reform suggest that the government is on the right track.
PPP

High Stakes for Indonesia's New Infrastructure Push

Cumbersome land acquisition procedures and other regulations have long been blamed for slow progress on public-private partnerships (PPP) for infrastructure in Indonesia. However, investment rules have been substantially overhauled in recent years to make them more attractive for private-sector engagement.

Indonesian Infrastructure: Tremendous PPP Opportunities

Inadequate infrastructure has long been identified as an obstacle to higher economic growth in Indonesia. This section looks at the new PPP projects available to investors in the infrastructure sector.

Indonesia Property Snapshot - Infrastructure

Average Government Spending: 2.9% of GDP (2015)
Investment Required: $500 billion USD (2015-19, RPJMN)
Global Infrastructure Ranking: 63/160 (WB 2016)
Infrastructure Quality Score: 2.65 (ASEAN Average 4)
Main Project Areas Under PPP: Toll roads & railways, power generation, water supply & waste management.
Government Bodies: BAPPENAS, BKPM, Ministry of Public Works and Housing, KPPIP.
Relevant Law: Law No. 2 of 2012 on Acquisition of Land for Development in the Public Interest, Presidential Regulation No. 38 of 2015 on Cooperation Between the Government and Business Entities in the Provision of Infrastructure, and Presidential Regulation No. 78 of 2010.