Licensing Become Dominant Factor of Domestic Industrial Property Sluggish

By : Ridwan And Aldi Firhand. A | Thursday, May 24 2018 - 22:15 IWST

Property Illustration
Property Illustration

INDUSTRY.co.id - Jakarta, DKI Jakarta Real Estate Region Board of Directors said, based on surveys conducted in the period February to April 2018, the developers REI predict the property industry will stagnate this year.

Jakarta DPD REI Chairman Amran Nukman explained that 55 percent of developers of REI members of DKI Jakarta stated that the property condition of 2018 will remain the same compared to the previous year. While the other 34 percent optimistic property conditions 2018 better.

"Of the overall, the majority still plans to develop simple housing, upper middle and apartments, with priority needs of infrastructure in the form of clean water and roads," he said in the Office of DPD Jakarta (23/5/2018).

Amran explained, the stagnation is mainly affected by government policy, namely taxation, licensing, credit interest rates. Especially in DKI Jakarta licensing is still a challenge in itself.

"Bureaucracy is the most dominant factor in influencing the licensing process, as 69 percent of respondents said it is easier to obtain permits outside of Jakarta than in Jakarta," he said.

This, he added, is exacerbated by Indonesia's macro conditions, especially as the weakening of the rupiah against the US dollar and the rise in Bank Indonesia reference rates. These conditions clearly put pressure on the real estate business developers.

"However, developers and property market should remain optimistic that the 2018 condition will improve," he said.

Even so, he said, developers are still optimistic in 2018 will be a brilliant year for the real estate industry. Because according to him, the majority of developers, which amounted to 32 percent see though 2018 a lot of pressure but their concern to develop is the market competition.

"We thought that the purchasing power of the people, in fact, is small, the location financing is not a problem, so the biggest competition is the market," he said.

News Comment

Today's Industry

COVID-19 Emergency Hospital in Kemayoran Athletes Village (Photo by: PR of Ministry of Health)

Kamis, 13 Mei 2021 - 06:10 WIB

Gov’t Completes Incentive Payment for Volunteers at Kemayoran Athletes Village

Ministry of Health, on 6-10 May 2021, has completed incentive payment of December 2020 for 1,613 volunteers working at COVID-19 Emergency Hospital in Kemayoran Athletes Village amounting to…

Vice President Ma’ruf Amin chairs a virtual meeting of the Regional Autonomy Advisory Council (DPOD), Tuesday (11/05). Photo by: BPMI of Vice Presidential Secretariat

Kamis, 13 Mei 2021 - 05:00 WIB

Special Allocation Fund during Pandemic Must be Managed in Accountable Manner: VP

The use of Special Allocation Fund (DAK) during the COVID-19 pandemic must take into account the accountability principle, Vice President Ma’ruf Amin has said.

Minister of Religious Affairs Yaqut Cholil Qoumas, Chairperson of the Indonesia Ulema Council (MUI) KH Abdullah Jaidi, and Deputy Head of Commission VIII Ace H Syadzili

Kamis, 13 Mei 2021 - 03:50 WIB

Eid al-Fitr Falls on Thursday, Gov’t Announces

The Government has announced that the first day of Shawwal 1442 Hijri, which marks the Eid al-Fitr 1442 Hijri celebration, falls on Thursday, 13 May 2021.

Minister of Manpower Ida Fauziyah. (Photo by: BPMI Documentation)

Kamis, 13 Mei 2021 - 02:45 WIB

Manpower Minister: Companies Must Protect Loading-Unloading Workers through Social Security Programs

Minister of Manpower Ida Fauziyah told companies to protect their loading-unloading workers (TKBM) through social security program for workers.

Minister of Transportation Budi Karya Sumadi inspected transportation service during the mudik ban period (11/05/2021). (Photo by: PR of Ministry of Transportation)

Kamis, 13 Mei 2021 - 01:39 WIB

Logistics Transport Movement During Mudik Ban Jumps by 70%

Movement of logistics transport via sea toll road has dramatically increased by about 70 percent during the period of mudik (Eid homecoming period) ban, according to Minister of Transportation…