Are there positive sentiments that will drive the real estate market?
The oil price has already gone down. This definitely has substantial impact and the transportation cost will drop sharply. Generally, these would bring in positive sentiments to the government too, since the inflation rate will also be lower, and the people’s purchasing power will increase. The BI rate is expected to slide too and this in turn will boost demand for property. How about our government’s policy? As we know, it still takes a lot of time to obtain a business license in Indonesia. Same thing happens when we want to acquire land for a project. On the other hand, it is equally important for us to have regulations that allow foreigners to buy (property) in Indonesia. These are just parts of the challenge. If the government allows foreigners to buy property in Indonesia, then apartment growth will be much higher. What are the challenges in the real estate business this year? We will still feel the impact of the global crisis. As a result, customers tend to wait and see. They sti
