Adhi Karya to build 100-floor tower in Jakarta

Antara News, Tue, November 15 2011

 The tower is a mega project with a height of 600 meters in the Kemayoran complex, Jakarta.

Jakarta (ANTARA News) - After the rights issue in the first semester of 2012, PT Adhi Karya Tbk (ADHI) planned to build a 100-floor tower in Jakarta, Minister of State Companies Dahlan Iskan said at his office on Monday night.

He believed that the 100-floor tower will become Indonesia`s pride considering its extreme height.

"The project will be built following ADHI`s rights issue," Dahlan said without pointing to the tower`s exact location.

He said the tower will be built by using unproductive government land. Right now the land was still under the control of the Finance Ministry, but will be handed over to ADHI to build it.

In realizing the major project, Dahlan will give ADHI the full responsibility in seeking business partners and the funds. "It appeared that the project would be realized under a corporate action, and let ADHI do all the plans and thinking," he said.

With regard to the possibility of the tower being used by state owned companies outside Java island, he dismissed, saying that the tower is a commercial project.

Previously former minister of state-owned companies Mustafa Abubakar had received the design of the tower from two senior businessmen Ciputra and Tommy Winata. And Ciputra and Tommy Winata had even offered to build the project with five and four towers.

The tower is a mega project with a height of 600 meters in the Kemayoran complex, Jakarta.

Editor: Heru

Lippo builds shopping mall, hospital in Kupang

The Jakarta Post, Jakarta | Sun, 04/17/2011

Lippo builds shopping mall, hospital in KupangProperty developer Lippo Group has begun construction on a shopping mall and a hospital in the East Nusa Tenggara capital of Kupang, valued at Rp 500 billion (US$57.5 million).Group owner James Riyadi said the construction projects were expected to be completed in two years.“At the first stage, i.e. in the first six months, we will complete the preparations, especially regarding licenses with the Kupang administration,” James said during the groundbreaking ceremony of the mall and the Siloam Hospital at Kupang’s Fatululi exhibition area.He added that property developers were beginning to set their eyes on eastern Indonesia, tribunnews.com reported on Sunday.

Property developer Lippo Group has begun construction on a shopping mall and a hospital in the East Nusa Tenggara capital of Kupang, valued at Rp 500 billion (US$57.5 million).

Group owner James Riyadi said the construction projects were expected to be completed in two years.

“At the first stage, i.e. in the first six months, we will complete the preparations, especially regarding licenses with the Kupang administration,” James said during the groundbreaking ceremony of the mall and the Siloam Hospital at Kupang’s Fatululi exhibition area.

He added that property developers were beginning to set their eyes on eastern Indonesia, tribunnews.com reported on Sunday.

Kemang Village to soon build office tower

The Jakarta Post, Jakarta | Thu, 04/07/2011

Kemang Village management will soon build an office tower in the area to meet the office demand in South Jakarta.

Kemang Village director Jopy Rusli said Thursday in Jakarta demands for offices in South Jakarta were growing because many companies wanted to avoid the three-person-per-vehicle rule in Jakarta's “golden triangle” business district, which includes Jl. Gatot Subroto, Jl. Sudirman and Jl. MH Thamrin.

“The area around the Kemang Village office building will not impose the vehicle rule and will be close to employees' residences,” Jopy said as quoted by kompas.com. “Kemang Village's added value will also increase because the construction of the Pangeran Antasari flyover is projected to complete in 2012.”

He added KV Mall, a shopping center project worth US$1.2 billion and built on 15.5 hectares of land, was also scheduled for opening in 2012.

House to open bid for new office building next week

The Jakarta Post, Jakarta | Mon, 03/07/2011

The House of Representatives will start next week the bidding process for the construction project of its new office building in Senayan, Central Jakarta.

A technical team comprising management and building-planning consultants are currently completing requirements for the bidding process to be submitted to the House secretariat general, House home affairs bureau deputy head Refrizal said Monday.

“As soon as the secretary-general receives [the required documents], the team will be instructed to open the bid,” he added as quoted by tempointeraktif.com.

Refrizal said among the requirements was a proposal for the standard minimum price, although he refused to disclose the amount.

He added the bid result would be announced mid May.

“Then in late May or early June we will hold the opening ceremony.”

President suggests construction of millions cheapest houses

Antara News, Tue, February 22 2011

Bogor, W Java  (ANTARA News) - President Susilo Bambang Yudhoyono has suggested the construction of million of very cheapest houses for the poorest and poor people in the country.

"We can build several million homes with the very cheapest prices within one year and will continue to do so," the president said in his closing address of government working meeting at Bogor Palace on Tuesday.

The head of state proposed that the prices of the cheapest houses would range from Rp5 million to Rp10 million per unit, because they were classified into temporary residence before the owners moved to a more permanent home.

President Yudhoyono`s suggestion would be a guideline which is to be discussed in the cabinet meetings.

According to the president, the funds for constructing the very cheapest houses could come from related state enterprises, corporate social responsibility funds, and those allocated from the government budget.

The construction of the most inexpensive houses is one of six new programs, proposed by the president.

The five other programs are related to cheapest transportation, cheapest clean water facility, cheapest electricity program, improvement of fishermen standard of living, and program to improve the lives of suburban community.

President Yudhoyono said the six new programs were the fourth group of pro-people programs.

Editor: Aditia Maruli

M`sian bizman to build 300 condos in Maluku

Antara News, Sat, February 05 2011

Ambon, Maluku (ANTARA News) - Malaysian businessman Datuk Wong Hee Toh is to build 300 condominiums in the Kudamati area for foreigners who want to do business in Ambon.

"What has prompted the Malaysian businessman is Maluku`s tourism potential. Tourism is a self-reliant people`s economic source," he said.

Khadijah Iskandar, director of Damuli Sarana Sdn. Bhd. of Malaysia said Wong Hee Teh had visited Ambon in early January and surveyed the area to be developed as a "business center".

He said 300 condominiums to be built on lands owned by individuals would be put on sale at the price of Rp300 million - Rp one billion per unit.

The sceneries of Ambon Bay and Ambon`s city center that can be enjoyed were an added value of the project.

Editor: Bambang

Ciputra builds Rp 3 trillion superblock

The Jakarta Post, Jakarta | Wed, 12/15/2010

Publicly listed property firm Ciputra Property is building a Rp 3 trillion (US$333 million) superblock on 5.5 hectares of land on Jl. Prof. Dr. Satrio, Jakarta, using the concept of Singapore’s Orchard Road business district.

The company’s executive director and corporate secretary Artadinata Djangkar said in Jakarta on Tuesday that Ciputra wanted to be the pioneer to build an integrated retail and entertainment hub similar to Singapore’s famous business district of Orchard Road in Jakarta.

“We want to be the pioneer of Orchard Road’s development in Jakarta. We believe that Jl. Prof. Dr. Satrio is among the favorite roads in the city,” he told a press briefing at Ciputra World Jakarta Marketing Gallery.

The development of Jakarta’s Orchard Road started with the Capital World Jakarta project, which is equal to the size of 55 football fields.

“Capital World Jakarta will consist of a mall, entertainment and theme park, auditorium, apartments, hotel and condominiums. Up to the end of 2010, the development of the project has reached 31 percent of the overall project area,” Artadinata said.

The 14-story mall, entertainment and theme park, as well as an auditorium with a capacity of 1,200 people are expected to be open to the public in mid-2012.

In addition, 170 apartments managed by Singapore’s Ascott Group, 136 myHome condominiums, a 170-room Raffles Hotel and 88 luxurious Raffles Residences apartments will also be housed on the super block.

The super block in the busy center of the city is expected to add more traffic in the heart of the capital, but Artadinata said the government was working on an overpass that would resolve traffic issues around the Jl. Prof. Dr. Satrio area.

“From about two weeks ago, the government started its overpass project from Kampung Melayu to Tanah Abang that will reduce traffic and facilitate people coming to the center of Jakarta,” he added.

Artadinata said Ciputra would focus on the development of the Rp 3 trillion-worth Capital World Jakarta as well as another 240,000-square-meter project on Jl. Prof. Dr. Satrio, known as the Kav. 11 project, next year

“Our capital expenditure for next year will be Rp 1 trillion, mostly for Ciputra World Jakarta and the remaining for the Kav. 11 project,” he said.

Listed on the Indonesia Stock Exchange (IDX) since 2007, Ciputra currently has a total of 10 hectares of land throughout the archipelago, including Mal Ciputra and Hotel Ciputra in Jakarta and Semarang, as well as myHome apartments at Ciputra World Jakarta.

On the same day, the property giant also announced a target of 130 percent jump in net profit for the full year of 2010 to Rp 171 billion from Rp 74 billion in 2009. Artadinata expected the growth momentum to continue until next year, as the property sector is expected to boom mainly thanks to hefty economic growth in Southeast Asia’s biggest economy.

“As we all know, Indonesia’s economy is among the most attractive investment destinations this year, so the economy is expanding, affecting the property market,” he added, eyeing Rp 3.9 trillion in assets by the end of the year.

Ciputra’s shares (CTRP) soared following the outlook announcement, trading at Rp 440 apiece at 3 p.m. on the Indonesia Stock Exchange (IDX), a 1.15 percent increase. Ciputra has a total market capitalization of Rp 2.7 trillion. (est)

Rp219 billion for housing

Antara News, Sunday, June 13, 2010 23:40 WIB

Ternate, N Maluku (ANTARA News) - The office of the Ministry of People`s Housing has allocated Rp219 billion to finance a housing project designed for the people in Halmahera Utara district, North Maluku province, the Halut district head said.

Halmahera Utara District Head Hein Namotemo said here on Sunday that the project constituted the realization of a housing project proposal made by the Halut regional government to the ministry of people`s housing sometime ago.

He said that the local government had proposed a budget of Rp371 billion for the construction of the housing project but only Rp219 billion was approved.

The district is the only district in North Maluku which got a budget allocation for a housing project in 2010, he said.

To Agents' Disappointment, Indonesia Keeps Ban on Foreigners Buying Property

The New York Times, by JON GORVETT, June 3, 2010

JAKARTA — Hopes for a change in Indonesia’s restrictive rules on foreign ownership of property were dashed when a major conference of real estate agents on Bali ended last week without an expected government announcement.

“We all thought they were ready to go for it,” said Bagus Adikusumo, director of Colliers International Indonesia. “But then it didn’t happen.”

Only Indonesian citizens are allowed to hold freehold titles in this archipelago republic. And its Constitution limits ownership of land as well.

Foreigners wishing to buy property have had to make purchases through Indonesian proxies, or one of two types of limited lease.

The first is a 30-year renewable lease available to entirely foreign-owned companies; the second is a 25-year renewable “right of use” lease available to individual foreigners.

“The problem is that the second of these leases is not bankable — no bank will lend on a title that is so limited and difficult to change,” said Alwi Bagir Mulachela, secretary general of the Indonesian real estate association. “It’s also not clear what happens if the foreign owner dies — inheritance is not clear in these circumstances.”

The Indonesian government has been eager to increase foreign investment and not be left behind by countries like Cambodia and Vietnam, which have recently eased their foreign ownership laws.

At the conference held last week by the International Real Estate Federation, known as the F.I.A.B.C., agents had expected the government to announce that foreigners would be allowed to buy property with a minimum value of $150,000; to introduce a simplified, 70-year lease that could qualify for bank financing; and to clarify the right of foreigners to inherit.

“I think they backed off first for nationalistic reasons,” Mr. Adikusumo said, “then secondly, because of fears that opening up the market to foreigners would favor luxury house construction at the expense of low-cost mass housing. They will also have to make major changes in the law, even perhaps the Constitution, which would take quite a while to push through Parliament.”

There are some indications that changes may still occur.

“Limiting foreign ownership is no longer the right approach,” the country’s public housing minister, Suharso Monoarfa, said in his speech at the conference.

Mr. Mulachela, of the real estate association, said: “I’m confident we’ll get something by the end of the year. The government says it’s working on it and the Land Office says it is too, so we’re still hoping.”

Historical buildings repainted as part of heritage revamp

Agnes S. Jayakarna, The Jakarta Post, Surabaya | Tue, 05/11/2010 10:07 AM | The Archipelago

A nationwide campaign to preserve cultural heritage has begun in Surabaya with the Balai Pemuda building, or De Simpangsche Societeit, built by the Dutch in 1903, being repainted.

The campaign was officially launched last Friday by world paint producer AkzoNobel in cooperation with the Surabaya municipality office and Surabaya Heritage.

Cities to follow include Bandung (West Java), Makassar (South Sulawesi) and two in Kalimantan and Sumatra, which will be decided at a later date.

Jeremy Paul Rowe, the managing director of AkzoNobel Decorative Paints Southeast Asia and Pacific, said that Surabaya was chosen to mark the program this year because of the numerous historical buildings in the city.

Rowe praised the Surabaya municipal administration for its efforts to preserve its historical legacy.

Attending the opening ceremony were Surabaya Mayor Bambang Dwi Hartono, executive director of Surabaya Heritage Freddy Istanto and Jerry Goei, the president director of AkzoNobel Decorative Paints Indonesia.

The Balai Pemuda building was selected as the first to be repainted, according to Rowe, because of its unique history and structure.

Built in 1907 by Dutch architect Westmaes, right at the heart of the city on Jl. Gubernur Suryo, the building was a favorite place for the Dutch community living in Surabaya to meet and gather and play three-ball snooker.

It was built on a plot of 17,000 square meters. Its main building has double domes shaped like the crown of a Dutch queen.

During the Indonesian fight for independence, the building was used as a meeting point for the nationalist movement. It was once the headquarters of the Youth of the Republic of Indonesia (PRI), a movement to maintain independence.

Given its part in the nation’s history, the building’s name was altered from De Simpangsche Societeit to Balai Pemuda. It currently functions as a multi-purpose building and has also been listed among the city’s 163 preserved heritage sites.

Angela Tan, head of communications at AkzoNobel Southeast Asia and the Pacific, said it would take two weeks to finish repainting the Balai Pemuda building.

Surabaya Heritage’s executive director Freddy Istanto, expressed pride the city was selected as one of the cities to receive assistance in maintaining cultural heritage.

“The Balai Pemuda compound is very lively. It has become a center for different supporting communities including the artistic community,” Freddy said.

He added that apart from being repainted, the Balai Pemuda building would also be revitalized without changing its original structure and aesthetic.

He expressed hope the repainting would make locals more aware and appreciative of the importance of preserving heritage buildings in their town.

“That way the care of heritage buildings will not just stop at the physical matter, but will be more connected to the historical value of our heritage,” he said.

Indonesia to host int'l conference on urban and housing

Dina Indrasafitri, The Jakarta Post, Jakarta | Tue, 05/04/2010 10:41 PM

Indonesia will host an international conference on housing and urban development and sustainability next month.

"There will be a series of dialogues, working groups and exhibition. Subjects to be discussed include the community's role in government management, slum upgrading, millennium development goals on clean water and sanitation, funding for sustainable urban and housing development, and the role of the community in managing climate change," Minister of Public Housing Suharso Manoarfa said Tuesday..

The conference, named the third Asia Pacific Ministers' Conference on Housing and Urban Development, will take place from June 22 to June 24 in Surakarta, Central Java.

About 1,000 participants, including housing ministers and high ranking officials, from 68 nations across the Asia-Pacific region will turn up for the conference.

This year's theme is "Empowering Communities for Sustainable Urbanization."

Budi Yuwono of the Directorate General of Cipta Karya from the Public Works Ministry, said this year’s conference would invite representatives from developed nations such as Japan, Korea and Australia.

Related Articles:

RI to introduce Solo`s urban management at Asia-Pacific Confab

Ministry hopes census to calculate housing demand

Govt to allow old foreigners to own property

The Jakarta Post, Jakarta | Tue, 05/04/2010 11:11 PM

The Ministry of Public Housing is drafting a revision of a government regulation that will allow foreigners aged at least 55 years old to own property in the country.

Housing Minister Suharso Monoarfa said Tuesday the revision was expected to be completed at the end of this month and submitted to the President afterwards.

Suharso said the revision also involved other institutions, including the Directorate General of Immigration, the National Land Agency.

He added the enforcement of the regulation would promote the country as a destination country for foreigners who wish to spend the rest of their lives here.

The regulation will limit housing loan for the foreigners to a maximum 50 percent of the property’s price. It also stipulates that the loan must mature in three years to avoid the foreign buyers from leasing the property.

Related Article:

Indonesia's Diluted Expatriate Property Rule Nearly Completed

Demand for offices up 40% as businesses begin to expand

Nani Afrida, The Jakarta Post, Jakarta | Thu, 04/15/2010 10:42 AM

The demand for office space in Jakarta continues to expand, as companies begin to carry out expansion programs and resume delayed projects, property consulting company Jones Lang LaSalle says.

The Chicago-based property consulting firm on Wednesday said the demand for rented office space in the capital had jumped 40 percent in the first quarter of this year to 30,000 sq meters, from the level in the fourth quarter of 2009.

Jones Lang LaSalle Indonesia chief researcher Anton Sitorus estimated demand to double to 200,000 sq meters this year from about 100,000 sq meters in 2009.

“We expect growth will be even higher in next quarters,” he said in a press briefing.

The property consultancy also revealed that during the January-March period in 2010, demand for offices in prime areas was higher as most tenants preferred to lease offices in grade-A areas such as the central business district (CBD) area of Sudirman-Thamrin rather than non-CBD locations.

“Most tenants preferred to lease grade A office buildings during the first quarter,” he said. According to the company’s data, the average rent on office space in the CBD was Rp 133,030 per sq meter per month, slightly higher than the Rp 100,647 for spaces in non-CBD areas.

Although the growth in demand would continue until the end of this year, Anton expected most landlords would maintain their leasing rates to attract more tenants.

“There are around 3.9 million sq meters of vacant office space in the CBD, while in non-CBD areas there is about 1.36 million sq meters. This means tenants still have many options to choose from”, Jones Lang LaSalle strategic consulting chief Vivian Harsanto said.

However, she said if electricity rates and fuel prices were increased 15 percent this year, the increase would also affect the rental rates.

Besides rental offices, the sale of condominiums also recorded a significant increase in the January-March period, the company said. “About 780 condominiums were sold in the first quarter of this year, or a 50 percent increase from 500 units in the forth quarter of last year,” Anton said.

“We estimate about 4,500 condominiums will be sold this year, rising from 2,500 units in a year earlier,” Anton said.

He contributed the sharp growth in the condominium sales to the low borrowing rates.

The prices are also expected to remain stable because many of the existing condominiums are still unoccupied, he added.

Foreigners Can Own Property, Indonesian Government Says

Jakarta Globe, Katrina Nicholas, March 31, 2010

It's game on after the Investment Coordination Board of Indonesia announced that foreigners will be allowed to own property.

Indonesia plans to allow foreigners to own property in the country and has completed its review of investment rules under the so-called negative list, the country’s investment coordination agency said on Wednesday.

The country will deregulate its property industry by the end of the first half, paving the way for foreigners to buy homes and commercial real estate directly, Gita Wirjawan, chairman of the Investment Coordination Board of Indonesia, said in Jakarta. The move will “unleash value,” he said.

Indonesia has been reviewing a 2007 presidential decree known as the “negative investment list,” which limits overseas ownership in companies. The new rules may include changes in the cap on foreign stakes in some industries, and a provision that companies whose shares are traded on the exchange are excluded from the regulation, the investment agency said in July.

A draft of the revised investment rules is with President Susilo Bambang Yudhoyono, Wirjawan said at a forum on Indonesia’s investment climate. He said he sees no reason why Indonesia’s credit ratings won’t rise to investment grade in the next 18 months.

Standard and Poor’s raised the country’s sovereign credit rating to a 12-year high of BB from BB- on March 12, prompting investors such as Cornel Bruhin at Clariden Leu AG in Zurich to predict more upgrades by rating companies in the coming months. The SandP rating, which has a positive outlook, is two levels below investment grade.

Moody’s Investors Service in September raised the country’s sovereign debt ratings one level to Ba2, the highest level in 11 years. Fitch Ratings on Jan. 25 raised Indonesia‚Äôs credit rating to BB+, one level below investment grade.

Bloomberg

Jakarta’s role in ASEAN could make it the regional hub

Abdul Khalik, The Jakarta Post, Jakarta | Mon, 02/01/2010 10:13 AM

Kebayoran Baru, a residential area in South Jakarta for members of the capital’s upper class may get a lot busier and see more expatriates moving in soon.

Blok M, with its popular amusement center and shopping malls, could be an attraction for many foreigners, not only Japanese or Koreans, who have become traditional customers of the nightclubs and bars dotting the area.

Officials are saying this might be the beginning of a busy period as more countries will appoint their representatives to ASEAN, whose secretariat office is located at the heart of the area.

Currently, 33 countries, including major economies, such as the US, UK, Germany, China and India, have sent their own ambassadors to ASEAN in addition to the ambassadors posted to the diplomatic missions.

ASEAN deputy secretary-general Bagas Hapsoro said Sunday that although several countries still attached their ASEAN representatives to embassies in Indonesia, most of them will have their own office as relations become more complex, with the expectation that they will open their office close to the Kebayoran Baru premises where the ASEAN Secretariat is located.

He went on to say that as interest in ASEAN grows, so too will the number of permanent missions, with Kebayoran Baru expected to be a prime location.

Also, he added, more jobs will be available as, for example, if one representative brings five foreign assistants and employs several other local workers, then hundreds or even thousands of jobs could be created.

“Many representatives are looking for offices and residences in the areas surrounding the secretariat,” Bagas, the outgoing Indonesian ambassador to Lebanon, said.

“These developments can only benefit ASEAN’s centrality and Indonesia’s primary role as a member and host of ASEAN,” he said.

ASEAN has established free trade agreements (FTAs) with many countries, including China, Australia, New Zealand and India, with many more to be implemented soon.

“The FTAs will make ASEAN and its secretariat much busier. And the world will look to Jakarta as an important city,” Bagas said.

Interest is rising among more distant countries in Africa, Latin America and the Middle East, he said.

Foreign Ministry spokesman Teuku Faizasyah agreed that the Dec. 15, 2008, ASEAN Charter, soon to come into force, has strengthened the position and relevance of the grouping as a rules-based organization, both in regional and international arenas, while giving Jakarta huge leverage as the host of the grouping’s secretariat.

“It will bring huge financial benefits to the Indonesian economy. It will also shape Indonesia’s changing role within the region and the entire world,” he said.

Faizasyah underlined, however, that to reap these benefits Indonesians should enhance their awareness of the new environment that requires Indonesians to be more open and to have a cosmopolitan outlook.

“We have been trying to raise awareness of people across the country through seminars, talk shows and other activities so that more Indonesians know about ASEAN and its impact on them,” he said.

As far as the government is concerned, Faizasyah said a national secretariat under the command of a director general has been established to coordinate other ministries’ activities within ASEAN.

“Indonesia has also sent its permanent representative to ASEAN to channel diplomatic efforts to lobby for our national interests,” he said.

The Government of Indonesia, Bagas said, has agreed to donate more land to enlarge the current ASEAN Secretariat office to prepare for more activity within the grouping.

The ASEAN Secretariat, which the ASEAN leaders have entrusted with the task of implementing the ASEAN Charter, has more than 270 employees, of whom only 70 are professionals, serving 10 countries with a combined population of 585 million people, Bagas said.

“By comparison, the EU employs 14,000 people serving 27 members with a smaller combined population,” he said, adding that Brussels, the headquarters of the EU, has evolved from being a sleepy Belgian town into the robust capital of a new Europe.

“It is time for us to think of Jakarta as an international city by defining it as the new ‘Brussels of the East’, and this includes more support to enhance the role of the ASEAN Secretariat. We should take a fresh look at how we can accommodate both ASEAN and non-ASEAN citizens who work to sustain the centrality of ASEAN,” Bagas said.

Foreign Property Ownership to be Extended to 70 Years

Tempo Interactive, Thursday, 28 January, 2010 | 15:16 WIB

TEMPO Interactive, Jakarta:Foreign property ownership will be extended from 25 years to 70 years. “The regulations formulation is completed. It only waits for the Housing Minister stamp,” said Lucy Rumantir, Jones Lang LaSalle Indonesia Chairman, in a press conference at the Nikko Hotel in Jakarta, yesterday.

Lucy, who is also the Permanent Commitee Head of Property Services for the Indonesian Chamber of Commerce and Industry (Kadin), is one member of the team who formulated Government Regulation (PP) No. 41/1996.

Under this regulation, foreigners could only own a house for 25 years.

According to Lucy, Indonesian properties occupancy rates are not optimal yet because of the government limitation.

Under this PP, foreigners can only own a home or flat built on land with a right to use (hak pakai) certificate .

Foreigners complained that while Indonesians could easily own houses abroad, but it is difficult for them to get houses in Indonesia.

Whereas regulations on property ownership in other big cities in the world was easier.

She cited that in Australia, foreigners could own a house just by having a passport. But they could only buy new houses.

“Later, step by step, we will formulate a regulation to allow right to use land become right to build land (hak guna bangunan),” said Lucy

Besides that, to smooth out foreign property ownership, the revision includes limitations.“For example, foreigners could only own properties above Rp1.5 billion,” she said.

Lucy added that if more foreigners buy properties in Indonesia, state revenues will increase.According to her notes, the number of foreigners in Indonesia is 83,000 people. If just one percent of them buy properties, this translate to 800 people. “800 times Rp1.5 billion, it’s quite a big revenue for Indonesia,” she said.

That does not include other impacts. If demand is higher, property development will also increase. “From there, demand for curtains and furniture will increase,” said Lucy. This means that other industries, such as textile and furniture, will also grow.

Eka Utami Aprilia | ANTON WILLIAM

PU office to set example in green certification

Prodita Sabarini, The Jakarta Post, Jakarta | Tue, 01/19/2010 11:04 AM

The planned new Public Works Ministry office on Jl. Pattimura in South Jakarta will be the first building in Indonesia to be certified by the Green Building Council of Indonesia and will at least achieve a gold ranking for design, an organization director says.

Green Building Council of Indonesia (GBCI) director of rating and technology Rana Yusuf Nasir said that the new building was the council’s pilot project for green building.

Planners designed the building site plan to include zero rainwater run off. It will also have a water recycling and treatment system with 83 percent water consumption. It will include an efficient energy system that will save energy consumption by up to 30 percent, with a target of 200 kilowatt-hours per square meter each year.

According to the GBCI, the average office usage in Jakarta currently stands at 250 kilowatt-hours per square meter per year.

Rana presented the building designs recently as a case study for businesses with interests in the green building sector.

The GBCI also launched its framework for a “greenship” rating system. The council plans to launch its official rating system for newly constructed buildings in March or early April. The council will prepare a rating system for existing buildings next week.

Rana said that the greenship rating will have four rankings — bronze, silver, gold and, the highest, platinum. A building receives bronze certification if it fulfills at least 35 percent of the total points needed; at least 46 percent for silver, gold 57 percent and platinum 73 percent.

He said that looking at the current planning of the building, it would at least be given gold certification.

Consulting company PT Jakarta Konsultindo is the building’s planning consultant. Director of Jakarta Konsultindo Maryanti Kusuma Masmara said that it was in the planning process.

“The construction will begin around this year,” she said.

The GBCI scrutinized several aspects of the building plan, according to its rating system framework.

Rana said that the organization examined the planned building’s appropriate site development, energy efficiency and refrigerant, water conservation, material resources and cycle as well as indoor air health and building environment management.

The planned building would gain points due to its accessibility to public transport. The plan also included a bicycle rack, and bathroom and changing room facilities. The building will be energy efficient utilizing natural daylight and an average air-conditioning temperature of 25 degrees Celsius.

The plan for the ministry building has fulfilled 66 percent of the total points needed.

Rana said that it was possible to achieve an even higher rank. “It is possible to be more energy efficient,” he said.

Office building and mall operators at the seminar said they were positive about the upcoming rating system from the GBCI.

“Without the rating system, we will be left behind other countries. We have to implement it fast,” Grand Indonesia Shopping Town engineering and maintenance senior manager Slamet Ristono.

GBCI chairwoman Naning S. Adiningsih Adiwoso said that the demand for green buildings was high in Jakarta.

Foreigners may in future stay, own property in RI : minister

Antara News, Friday, January 8, 2010 01:29 WIB

Jakarta (ANTARA News) - Foreigners in Indonesia may in the future be given the right to stay and own property in the country so they can contribute to the national economy, Public Housing Minister Suharso Manoarfa said.

"Our old perspective with regard to foreigners must be changed. If so far only foreigners who have already contributed to investment are allowed to stay, now any foreigner should be given the freedom to stay and thereby we will be attracting more and more investment," Monoarfa said here on Thursday.

Government Regulation (PP) No.41/1996 on foreign ownership of property was made in the past when Indonesia did not adhere to an open economic system. Now, with the advent of the free trade era, the regulation had become obsolete or useless, he said.

If foreigners were given the freedom to stay in Indonesia, it would have a positive impact on economic growth and investment. Therefore, Manoarfa said, PP No41/1996 would be changed in May 2010.

Moreover, Indonesia`s neighbors such as Vietnam, Singapore, and Malaysia had already given foreigners the freedom to buy property in the countries, he noted.

Manoarfa also said foreign ownership of property was an interesting issue and the government had assigned the Coordinating Minister for Economic Affairs and the State Secretariat to explore it further.

The government wanted the matter to be studied academically first and eventually to become a topic of dicussions by the Coordinating Minister for Economic Affairs and the State Secretariat, he said.

Meanwhile, the minister said, he had asked law experts to find a proper definition of the right of foreigners to own property in Indonesia.

RI developers to join FIABCI property competition

Antara News, Saturday, December 12, 2009 22:16 WIB

Jakarta (ANTARA News) - Eight national developers have been selected to represent Indonesia in a world property competition to be held by the International Real Estate Federation (FIABCI).

"We selected eight developers out of 34 nominees for 11 categories," Pingki Pangestu, organizing committee chairman of FIABCI Indonesia - BNI Prix d`Excellence Award, said here on Friday.

The eight developers would take part in the international contest to be organized coinciding with the 61st FAIBCI World Congress to be themed "Save the World: Green Shoots for Sustainable Real Estate", Pangestu said.

Chairman of the Indonesian Real Estate Association (REI) Teguh Satria who is concurrently president of FIABCI Indonesia, said it was about time for Indonesia to be active in international property contests.

Except for Bali, Indonesia was hardly known internationally, he said.

The 61st FIABCI World Congress and the world property contest will be organized at Nusa Dua, Bali Province, from 24 to 28 May 2010.

Indonesia would be hosting the international contest for the first time, while Malaysia had already done so 27 times.

The selected eight Indonesian developers are Bekasi Timur Regency, Jakarta Garden City, Grand Orchard, Apartment

Mediterania, The Pakubuwono Residence, 6. The Residence, Alam Sutera and Gedung Menara Karya.

FIABCI is represented by chapters in 48 countries. It communicates in five official languages, namely English French German Japanese and Spanish.

FIABCI is a non-political entity whose objective is to help its members add an international dimension to their businesses. FIABCI helps members acquire knowledge, develop networks and optimize business opportunities all over the world.

The organization has a business club of real estate professionals in 60 countries and groups or federations of 100 national real estate associations.

FIABCI is special consultant with NGO status to the Economic and Social Council of the United Nations Organization (ECOSOC).

Arts Buildings to be Constructed

Tempo Interactive, Monday, 07 December, 2009 | 16:59 WIB

TEMPO Interactive, Bogor: The West Java Government will build full facilities sport centers and large scale arts buildings in five areas of West Java.

One of them will be at Bogor. “Large scale arts buildings will be constructed in several regions, among them Bandung, Bogor and Cirebon. At the moment, they are in planning stage,” said West Java Governor Ahmad Heryawan after the inauguration of the Mandapa Pelataran Pakujajar Pakuan building, last Saturday.

According to the governor, the construction of these buildings will be financed from the 2010 regional budget.

Besides that, the region has prepared a Rp3 billion fund to help build 15 hermitages in West Java.

DEFFAN PURNAMA

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