1.

Requirement of Living Place The requirement of living place, according to Badan Pusat Statistik (BPS), is about 13,6 millions units. It also says that the average requirement per year is bout 800,000 units. During a year, the supply of building is only about 200,000 units, that means that there is a huge lag of supply here. (Source: investor daily,2011).

Pemenuhan Kebutuhan Rumah Hunian

25%

65%
Government Public None

10%

Graphic 1.1. Compliance of Living Place During a Year (Source: BPS:2011)

As predicted by Indonesian Property Consultant Cushman & Wakefield, in Jakarta, Sunday (26/8), the requirement of residensial, house and condominium in the Jabodetabek area, is increasing until the year of 2013. And as told by Head of Indonesuan Research & Advisory Cushman & Wakefield Arief Rahardjo, the growing of property business is supported by the economic condition in Indonesia which is relatively stable, the low of bank rate of interest, the growing of middle class, and the strength of domestic market.

2. Review of National Economic Condition According to Mr. Alvin Kurniawan, a Business Development from PT. Bangun Properti Indonesia, said that Indonesia seems not to be affected by the economic crisis happened in Europe and America. Moreover, the economic growth in the 2011 reach 6.5% higher than the world economic growth which is only 4.4%. Property business is so wanted because its value that never go down, even if we see it from the inflation aspect, it will not be effected, also from the bank rate side it is not sifnificantly affected, It can be seen in the year of 2011, the infation is 6%, bank rate keep stable and consumtive credit rate is decrease.

Tabel 2.1. Bank of Indonesia (BI) Rate and Investment rate bassed on Group of Bank, 2001-2012
Periode 2012 January February Maret April May June July August 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 6,00 5,75 5,75 5,75 5,75 5,75 5,75 5,75 6,58 6,50 7,15 9,25 8,00 9,75 12,7 12,7 13,7 15,0 15,9 12,9 15,4 16,9 13,1 14,6 18,2 12,95 13,55 14,18 14,85 13,11 15,42 16,23 13,91 15,75 18,30 13,78 14,74 16,49 15,91 14,69 17,20 16,06 15,93 18,80 21,67 9,27 10,6 13,0 14,5 10,2 11,4 14,5 9,33 11,0 15,7 10,88 11,96 13,36 15,00 10,56 13,21 15,55 11,44 12,60 16,09 30,98 33,37 35,23 35,32 36,24 35,74 32,01 32,90 34,50 34,61 12,4 13,2 14,5 15,2 13,0 15,0 16,2 13,4 15,0 18,2 12,12 12,63 13,65 14,40 13,01 15,10 15,66 14,05 15,68 17,82 14,4 15,1 16,5 16,4 16,1 17,5 16,8 16,5 18,6 20,2 12,3 12,3 12,2 12,1 12,0 12,0 12,0 12,58 12,54 12,42 12,38 12,31 12,23 12,18 13,60 13,60 13,58 13,62 13,48 13,17 13,32 8,52 8,25 8,25 8,04 7,97 7,98 7,93 9,71 9,63 9,44 9,46 9,43 9,54 9,50 30,74 30,60 30,97 30,60 30,20 30,66 30,36 12,1 12,0 12,0 11,8 11,7 11,7 11,7 11,73 11,62 11,62 11,56 11,51 11,46 11,42 14,1 13,6 14,1 14,1 14,0 13,9 13,9 BI Rate Private Bank capital invest Consumtion Capital Foreign Bank Invest Consumtion Capital Public Bank Invest Consumtion

Catatan : BI Rate officially valid as reference of bank rate from year of 2005. Source: Bank of Indonesia.

The Chief of Badan Koordinasi Penanaman Modal (BKPM) Indonesia, which is also a trade minister, Gita Wiryawan, said, Crisis in Europe and America doesnt effect to the national economic growth, reflected from the improvement of domestic and foreign invesment in the year of 2011 which is increase for 20.5% become USD 25.13 billion, including realization of foreign invest (PMA) USD 17.53 billions and Domestic Invest (PMDN) USD 7.6 billions. The Indonesian rank, from the Internatioal Ranking Organization, Fitch Rating and Moodys, increasing which detarmine Indonesia into position of investment grade. Seeing that condition, BKPM targetting the realization of foreign and domestic investment in the year of 2012 is USD 28.35 billions, evenmore in 2014 ambisciously targetting for USD 44 billions - USD 45 billions.

Tabel 2.2 Credit Investment Position of Bank Bassed on Economic sector, 2003-2012 (Billion Rupiah)
Loan bassed on Field of business End of Periode
2012 2011 2010 2009 2008 2007 2006 2005 2004 2003

Construktion

Trading, hotel, and Restaurant

85.974 64.210 46.996 281,5 223 207 182 187 163 142

Financial, Real Estate and Conpany Services

60.114 46.710 30.830

Services

Loan for un Business Field

Sum

19.981 17.388 18.382 128.461 119.444 74.727 58.407 52.018 43.180 34.451

45.949 42.783 34.853

12 13 261

499.617 405.309 319.905

Source : Bank of Indonesia

4. Condominium as a Trend As Economic growing bettter push the demand of living in the center of city and business activity sharply increase. Residential Project Marketing Group Head Jones Lang LaSalle Procon, Luke Rowe, explain that the sum of sold condominium in Jakarta during 2011 increase more than two times from the year before.
4.1. Index of Human Development at Provine and Naational, Especially Jawa and Bali Island 1996 - 2010 Provinsi 31. DKI Jakarta 32. West Java 33. Middle Java 34. Yogyakarta 35. East Java 36. Banten 51. Bali Indonesia (BPS) 1996 76.10 68.20 67.00 71.80 65.50 70.10 1999 2002 2004 2005 2006 2007 2008 2009 2010 72.50 75.60 75.80 76.07 76.33 76.59 77.03 77.36 77.60 64.60 65.80 69.10 69.93 70.32 70.71 71.12 71.64 72.29 64.60 66.30 68.90 69.78 70.25 70.92 71.60 72.10 72.49 68.70 70.80 72.90 73.50 73.70 74.15 74.88 75.23 75.77 61.80 64.10 66.80 68.42 69.18 69.78 70.38 71.06 71.62 66.60 67.90 68.80 69.11 69.29 69.70 70.06 70.48

65.70 67.50 69.10 69.78 70.07 70.53 70.98 71.52 72.28

One of the reason people choose condominium and appartment in the center of city that is because it is free from the long traffic jam which is ussualy faced by the commuter citizen. And one of the variety leave in this condo is young couple that just married and having this condominium from their parent as a present.

5. The Growth of Condominium According to the Jones LaSalle-Procon data, the number of condominium

supply at this time is 76,300 units, meanwhile, as much as 26,500 units estimated will be finished on 2014. The increasing of the condominium buyer that has been built is about 96.9 % from 2,240 units that have not beel sold yet, and big part of it came from Thamrin Residence. The Sharply improvement happen from the top class with the biggest contribution from the two condominium in CBD area and South Jakarta. Middle class dominated by Bellmont Residence and Signature Park that just been lounch last quartal. Condominium occupancy rate increased to 66.8 % compared to 66 % in the previous quarter. The largest contribution occurs in the middle segment by 54 percent of the increase in occupancy biggest two condominium projects for the premium segment in the CBD, the Da Vinci and the Oakwood Premier Cozmo. For the fourth quarter of 2011, the supply of condominium units recorded 9,850 units, with the largest contribution dominated the middle segment accounted for 63 % of the total units available. With the high amount of supply, the developer projected will not raise the price of their property until the end of 2010.

6. Harga Kondominium As the sales of apartments Lippo Group, St Moritz Penthouse and Residences in Puri Indah, West Jakarta, the price of one unit of measure 82 square meters apartment sold for USD 1 billion. Meanwhile, for the apartments measure 269 square feet with a private elevator, the price could reach USD 4 billion. For class penthouse prices could be even higher.

With 20% deposit of the price, the developer has pocketed at least 120 billion euros. Budhi announced from the beginning, he was optimistic enough to sell the apartment units even put a high enough price.

7. Condominium Developers Alphabeticaly, here is the top ten biggest developer version British Council Indonesia (BCI): 1. PT Agung Podomoro Land Tbk 2. PT Agung Sedayu 3. PT Ciputra Development Tbk 4. PT Duta Pertiwi Tbk 5. PT Intiland Development Tbk 6. PT Jakarta Setiabudi International Tbk 7. KG Global Development 8. PT Lippo Karawaci Tbk 9. PT Metropolitan Kentjana Tbk 10. PT Summarecon Agung Tbk In addition to those 10 Developers, there are still such number of developers are actively building a condominium in Indonesia, such as the BSD Tbk PT 2010 very aggressive during launch and working on new projects. Pakuwon group that is working on two projects in Jakarta and Surabaya multifunctional. The group Bandung Propertindo very aggressive and expansive in Bandung, Makassar and Balikpapan and Jakarta last. Two Pearls Group owned by Tan Kian as a specialist developer of leading Commercial High rise in Jakarta and Indonesia.

8. Condominium Developers Opportunity Here are the advantages and disadvantages of investment apartments: Advantages 1. The demand is high, especially in the business area, expatriate residential areas, and campus environments 2. 3. Medium term lease (2-3 years) Risk low vacancy.

4.

High capital rate (7-10 per cent). At the risk of low vacuum unit, then the revenue comes from rental units also automatically become fluent.

Disadvantages 1. The owner must be careful to choose the location of the prospective apartment or condominium. 2. The owner should select a good building management.

9. Employees Developer company contributes significantly to employment in Indonesia. The following table index Permanent Employees, Workers Daily, Salaries Wages and Employment Value Construction Sector 2008 - 2010 (Triw IV)

9.1 Table index Permanent Employees, Daily Workers, Wages Salaries and Employment Value Construction Sector 2008 - 2010 (Triw IV)
INDONESIA

Tahun dan Triwulan

-1 2008 Triw I Triw II Triw III Triw IV 2009 Triw I Triw II Triw III Triw IV 2010 Triw I Triw II Triw III Triw IV *

Employees Tetap
-2

Daily Workers
-3

Wages Salary
-4

Value Job
-5

98.69 101.88 102.21 101.92 99.99 101.14 101.16 102.23 102.18 102.30 101.39 101.18

96.50 114.71 111.00 109.50 99.84 107.42 110.16 108.08 104.83 102.84 107.30 108.68

97.46 111.67 111.90 113.40 99.94 109.14 110.14 108.24 101.61 104.24 108.21 108.88

96.93 111.47 111.08 113.10 99.78 109.06 110.70 108.09 100.35 103.23 108.45 109.25