INDONESIA Property INVESTMENT GUIDE WELCOME Contents
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INDONESIA Property INVESTMENT GUIDE WELCOME Contents We are very glad to release the third issue of Investment Guide jointly with Welcome note Makes & Partners. The previous two publications in 2015 and 2017 had been a great benet to our foreign investor clients by guiding them to understand the property, legal and tax regulations in Indonesia. Section One Property Despite the Covid-19 pandemic crisis since early 2020, the Indonesian government remains strongly committed to sustain growth by focusing on Section Two new infrastructure, human capital development and structural reforms to Legal Requirements attract investment and scal support. With long-term condence and pent-up demand accumulating, Indonesia’s property market is also Section Three expected to recover gradually once a vaccine becomes widely available. Tax Information We hope that this updated publication will continue to be a great benet to our clients. Please do feel free Section Four to contact Knight Frank should we be able to assist Our Services you in your investment plan. Willson Kalip Country Head, Knight Frank Indonesia [email protected] Warm greetings to all. We at Makes & Partners are delighted to be working once again with Knight Frank for the 2021 edition of the Indonesia Property Investment Guide Book. The Indonesian legal landscape, in particular, on construction and real estate has been very dynamic and robust in the past years, providing for a Indonesia conducive environment to foreign and local investors alike. With our known Property Investment Guide market strength in property, construction and real estate laws, Makes & Team Partners is very pleased to share with you valuable and practical general Editor legal insights to take into consideration when crafting an informed decision Hasan Pamudji to invest in and/ or buy real property in Indonesia. Research Syarifah Syaukat We hope that you will nd the 2021 Indonesia Property Muthiannisa Investment Guide Book useful and informative. We Gabriela Bunga wish you all the best in your real property investments Marketing & Communications in Indonesia. Miranti Paramita Yozua Makes Creative Designer Founding and Managing Partner Candra Makes & Partners Law Firm 3rd Edition - 2021 INDONESIA PROPERTY INDONESIA PROPERTY INDONESIA PROPERTY Indonesia Overview Fact Sheet Over Half The world's fourth most The world's 14th-largest country of all international shipping populous country of more than In terms of land area about goes through Indonesian waters 260 million people 1,919,440 square kilometers Capital City DKI Jakarta Type of Government Unitary Presidential Republic Population 268,074,600 President Joko Widodo Main Ethnic Groups Javanese 42.7%, Sundanese 15.4%, Madurese 3.4%, Minangkabau Close to Official language is Bahasa Indonesia, while The nation's capital and largest city 2.7%, Betawi 2.5%, Bugis 2.5%, Banten 2.1%, Banjar 1.7%, Balinese 583 languages and dialects is Jakarta which has English is widely used 1.5% and others/unspecified 25.5% are spoken in the archipelago in the trade 10.5 million of population Main Religions Muslim 87.2%, Christian 9.9%, Hindu 1.7%, Buddhist 0.7% and others/unspecified 0.5% (2010 census) Total Area 5,193,250 square kilometers Land Area 1,919,440 square kilometers Water Area 3,273,810 square kilometers The world's largest population Indonesia is a Republic with an elected A founding member of ASEAN and of Muslims with other minority religious legislature and president. Indonesia is now a member of groups being Christians, Hindus and Buddhists the world's third-largest G-20 major economies Currency Rupiah (IDR) democracy Climate Tropical, hot, humid; more moderate in highlands Terrain Largely coastal lowlands; larger islands have interior mountains Population Growth Rate (%) 1.31% Major Agricultural Products Rice, coconuts, soy beans, bananas, coffee, tea, palm, rubber, sugar cane Major Industries Fishing, petroleum, timber, paper products, cotton cloth, tourism, mining of petroleum, natural gas, auxite, coal and tin Indonesian High Networth Individuals Indonesia’s productive age group Indonesia is forecast to be (HNWIs) is forecast to is forecast to reach the world’s fourth largest grow by 57% to 70 percent of the economy at US$10.5 Trillion Source: Processed from Multiple Sources by Knight Frank / PT. Willson Properti Advisindo 33,057 people in 2024 total population by 2030 by 2050 INDONESIA PROPERTY Medan Celebes Sea Pekan Baru North Penajam Paser Batam Pontianak & Kutai Kartanegara Padang New Capital City Samarinda Jambi Kalimantan Balikpapan Sumatera Sulawesi Palembang Banjarmasin Irian Jaya Bandar Lampung Java Sea Bandung Makassar Serang Semarang Surabaya Cimahi Banda Sea Tasikmalaya Indian Ocean Java Bali Arafura Sea Jakarta Depok Malang Tangerang Bogor Denpasar South Bekasi Tangerang Timor Sea Source: Knight Frank / PT Willson Properti Advisindo Growth Centers and Opportunities Major Urban Centers Important Growth Centers (Metropolitan Cities with Population of over 1 Million) (Cities with Population of between 500,000 and 1 million) In the inception, major cities in Indonesia # City Province Population were developed based on services and # City Province Population 1 Jakarta DKI Jakarta 10,557,810 1 Pekanbaru Riau 954,373 commercial trading activity patterns. The 2 Surabaya East Java 3,158,943 2 Padang West Sumatera 950,871 growth of the cities was influenced by 3 Bandung West Java 2,480,460 3 Denpasar Bali 947,100 business sectors that provided dominant 4 Bekasi West Java 2,448,830 4 Malang East Java 927,285 economic contribution to the region. 5 Medan North Sumatera 2,279,894 Today the majority of cities in Java are 6 Depok West Java 1,857,734 5 Samarinda East Kalimantan 793,580 still dominated by trading and industrial 7 Semarang Central Java 1,814,110 6 Tasikmalaya West Java 719,882 activities, while major cities in Sumatera, 8 Tangerang Banten 1,771,092 7 Banjarmasin South Kalimantan 708,606 Kalimantan and Sulawesi are largely 9 Palembang South Sumatera 1,619,533 8 Balikpapan East Kalimantan 655,178 10 Makassar South Sulawesi 1,480,480 supported by plantation, oil and mining 9 Serang Banten 652,192 sector activities. Moreover, some other 11 South Tangerang Banten 1,279,052 10 Pontianak West Kalimantan 646,661 key cities such as Denpasar, Bandung, 12 Batam Riau Islands 1,107,551 13 Bandar Lampung Lampung 1,051,500 11 Cimahi West Java 614,304 Bogor and Yogyakarta still rely heavily on 14 Bogor West Java 1,048,610 12 Jambi Jambi 591,134 the tourism industry. Source: BPS, 2020 Source: BPS, 2020 INDONESIA PROPERTY Map of Major Townships in Greater Jakarta JAVA SEA Pakuhaji Seaport Citius Seaport (Proposed) JAKARTA BAY (Proposed) 19 PROPOSED RECLAMATION AREA PROJECT Pantai Indah Kapuk 2 WESTERN AREA CENTRAL AREA EASTERN AREA (1000 Ha) 1,745 Ha 1,787 Ha 1,555 Ha Tanjung Priok TANGERANG Soekarno-Hatta 20 International Airport Pantai Indah Segara City REGENCY Kapuk 1 Ancol (110 Ha) (831 Ha) (552 Ha) Aeropolis 5 Kelapa (105 Ha) Citra 17 Garden City Gading Mutiara (550 Ha) Jakarta 18 (450 Ha) 3 Garden City Gading City (110 Ha) Citra Garden 3 (370 Ha) 21 21 City 1 4 5 Kota Harapan (58.3 Ha) 6 16 1 10 2 Indah BEKASI Suvarna Sutera (2,200 Ha) (2,600 Ha) 1 1 REGENCY Kota TANGERANG 3 2 Metland Modern Menteng 35 (470 Ha) CITY Puri Indah 2 (138 Ha) Talaga Bestari 23 22 (180 Ha) Metland (308 Ha) Cibitung Alam Graha 11 Halim Summarecon (319 Ha) KARAWANG Lippo Sutera 7 Perdanakusuma 15 Bekasi Karawaci Raya (400 Ha) REGENCY Citra Raya Tangerang (800 Ha) (676 Ha) (2,500 Ha) 1 9 (2,760 Ha) Summarecon & 2 Paramount Serpong JAKARTA (1,843 Ha) 25 Pondok Bintaro Indah 8 4 Jaya (460 Ha) BEKASI (2,000 Ha) 26 12 Citra Maja Raya Grand Wisata 34 Jababeka (2,600 Ha) CITY (1,100 Ha) (5,600 Ha) 24 BSD City 13 14 27 Pondok Gede (6,000 Ha) SOUTH 3 BSD City 33 Galuh Mas TANGERANG Karawang 28 (180 Ha) Raes Lippo Cikarang Kota Metland (3,250 Ha) 36 Hills Cileungsi 32 (300 Ha) Wisata (750 Ha) (134 Ha) Modern Cilejit Millenium (1,000 Ha) City 30 Kota Podomoro (1,388 Ha) Harvest Delta Mas Tenjo DEPOK City (3,049 Ha) (650 Ha) Serpong (1,350 Ha) LEBAK Natura City CITY (210 Ha) 29 CitraGran Metland Cimanggis Cibubur REGENCY Golf Estate (300 Ha) Transyogi Toll Road (510 Ha) (132 Ha) Citraland Legenda Cibubur Wisata (220 Ha) 1 Cawang - Tomang - Pluit (JIRR) (Completed) (180 Ha) 2 Kp Melayu - Tomang - Duri Pulo (Planning) 31 3 Kemayoran - Kampung Melayu (Planning) CitraIndah 4 Semanan - Sunter (Planning) BOGOR City Jonggol 5 Cawang - Tj Priuk - Pluit (JIRR) (Completed) Commuter Line REGENCY (825 Ha) 6 Sunter - Pulo Gebang (Planning) 7 Ulujami - Tanah Abang (Planning) 1. Soekarno – Hatta Airport Rail Link Citra Sentul 8 Pasar Minggu - Casablanca (Planning) 2. Serang - Jakarta Intercity Line Raya 9 Bekasi - Cawang - Kp Melayu (Completed) (1,000 Ha) 10 JORR West 1 (Completed) 3. Jakarta - Bogor Intercity Line 11 JORR West 2u (Completed) 4. Jakarta - Cikampek Intercity Line Legend 12 JORR West 2s (Completed) Bukit 13 JORR South (Completed) 5. Tanjung Priok Intercity Line Cimanggu City 14 JORR East 1 (Completed) Existing Toll Road (125 Ha) 15 JORR East 2 (Completed) MRT Line 37 16 JORR E3 (Completed) Future Development Toll Road 17 Tanjung Priok Access (Completed) Sentul 18 Cengkareng - Kunciran (Under Construction) 1. North-South Line (Phase 1) Commuter Line BOGOR City 19 Kamal - Teluknaga - Rajeg (Planning) Lebak Bulus - Bundaran Hotel Indonesia Sentul Nirwana 20 JORR 3 (Planning) (3,100 Ha) Future Development MRT Line Jakarta - Bandung (High Speed Train) CITY Future Development 21 Semanan - Balaraja (Planning) (30,000 Ha) 22 Jakarta - Tangerang (Completed) 2. East-West line (Phase 1) Existing MRT Line 23 Tangerang - Merak (Completed) Kali Deres - Ujung Menteng 24 Sepong - Balaraja (Under Construction) 3.