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INDONESIA ECONOMIC OVERVIEW

  • Indonesia’s economy is the biggest in Southeast Asia that will grow 6.3% in 2013, almost the same pace as last year at 6.5%; (Source: Global Times - 26th December 2012: Indonesia’s economic growth likely to remain strong in 2013)

  • Per capita income is expected to rise by an average of 19.8% in 31 provinces with a boost in the minimum wage raise benefiting a favourable macro-economy condition - stronger buying power of low-income people as well as a pick-up in investment; (Source: Jakarta Globe - 24th December 2012: Indonesia’s Property Market is Still Shining) 

  • Deceleration in both fixed investment and household consumption and weak exports in Indonesia have dampened economic growth this year. The government boosted its budget allocation for infrastructure investment but only 10% was disbursed in the first half. Household consumption moderated in response to higher inflation and tighter consumer credit. As a result, GDP growth slowed to 4.7% year on year in January–June. However, Indonesia is still growing faster than other countries that export commodities to China, such as Brazil and South Africa. (Source: Indonesia Economic Quarterly, July 2015: Slower Gains - http://www.worldbank.org/en/news/feature/2015/07/08/indonesia-economic-quarterly-july-2015)

  • Based on the market-watch, Indonesia is a country that rapidly growing economies and rising incomes as Indonesia as home to a large and young labour force, an expanding middle class and have stable, elected government with policies inspiring investor confidence;

  • The classic industrial supply remains the continuing enquires for industrial land versus the limited stock of land on offer;

 

  • Bekasi and Serang regions sold more land compared to any other locations such as Bogor, Tangerang, and Kerawang; (Source: Colliers Research & Forecast Report - 3Q 2015)

 

  • Industrial land prices in general increased by 9.8% compared in 2013.  Particularly those located in Bekasi, Tangerang and Serang. (Source: Colliers Research & Forecast Report - 3Q 2015)

 

  • The rental tariff for industrial estates offering in US dollars range between USD 4.00 to 5.00/sq  m/month. (Source: Colliers Research & Forecast Report - 3Q 2015)

 

  • Banten has 1.623 industries with 72 prominent sectors manufacture various goods as steel, plastic, paper, textile, machine, processed wood, spare-part, heavy equipment, paint, shoe, leather, rubber, machinery, etc. (Source: www.ina.or.id/services/regional-governments/221: Banten General Information)

ILLUSTRATIVE PHASE

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