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

Menteri PUPR Basuki Hadimuljono (Foto Ist)

Jumat, 17 Agustus 2018 - 22:39 WIB

Minister Basuki Ensures There Are No New Projects Except Dam

Minister of Public Works and Public Housing (PUPR) Basuki Hadimuljono said there were no new infrastructure projects undertaken by the Government in 2019 except for dam construction.

President Joko Widodo together with Minister of PUPR Basuki Hadimuljono check the work of Bocimi Toll

Jumat, 17 Agustus 2018 - 22:37 WIB

Infrastructure Development Grows a New Economic Center

Infrastructure development carried out by the government in various regions can foster new economic centers, said the Chancellor of the University of Jenderal Sudirman (Unsoed) Purwokerto Professor…

Presiden Joko Widodo (Foto: Ist)

Jumat, 17 Agustus 2018 - 22:36 WIB

2019, the Government will Prepare 905 Km of Toll Roads and 48 Dams

In addition to increasing the development of human resources, President Joko Widodo (Jokowi) said, the Government also continued infrastructure development.

Illustration of Commuter Line KRL

Jumat, 17 Agustus 2018 - 22:34 WIB

KCI Launches 2018 Asian Games Commuter Edition Card

PT Kereta Commuter Indonesia (KCI) launched a multi-trip card (KMT) special edition of the Asian Games by taking inspiration from the 2018 Asian Games mascot.

Minister of PUPR Reviewed Infrastructure Projects in Papua (Photo Humas)

Jumat, 17 Agustus 2018 - 22:32 WIB

Infrastructure Development is the Same as Development of Civilization

President Joko Widodo believes there are still many parties who misunderstand when the government is aggressively building physical infrastructure such as toll roads, airports, including mass…