TANGERANG – The property business in Indonesia, which is hampered by the Covid-19 pandemic, shows improvement. This makes foreign companies more and more interested in collaborating with local developers working on projects not only for housing but also for commercial, warehousing, to data centers.

Indonesia can get through the Covid-19 pandemic with a relatively well-maintained economy. Until now, Indonesia's gross domestic product (GDP) still showed an increase of 3.69 percent on an annual basis (year on year / yoy) in 2021, which is in line with the continued improvement in handling the pandemic.

Community activities that have started to return to normal have also impacted the realization of exports and have shown the highest numbers compared to the situation before the pandemic. This is driven by the continued strengthening of various commodity prices after our previous negative 2.02 percent growth in 2020.

According to Anton Sitorus, Director of Research & Consultancy Savills Indonesia,
"The pandemic situation has made the landed housing sector a leader compared to other sectors driven by high demand which has been pent up and realized during the pandemic situation. This makes the absorption rate continue to strengthen, especially in the Greater Jakarta area," he said.

"We see the increasing participation of foreign companies here, including in the development of data center centers in Indonesia. This will continue to drive demand for the property sector in all segments and will fill the void that has been constrained by the pandemic," he explained.

This situation is also in line with a survey conducted by Grant Thornon, which stated that the situation in the property business in Indonesia continues to show a more optimistic signal. Around 87 percent of business owners feel confident that their business performance will continue to improve in the next 12 months, which is shown by the launch of new projects during the last six months.