3 Criteria of Successful Property Development According to Chairman of Jababeka

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JAKARTA, presidentpost.com – Indonesia Economic Forum held the first Indonesia Property Forum (IPF) 2017 on November 30, 2017 at Shangri-La Hotel, Jakarta. The event aimed to have the property business players ready to anticipate the trends and opportunities in the upcoming years.

In his speech at the opening of IPF 2017, Minister of Agrarian Affairs and Spatial Planning (ATR)/Head of National Land Agency (BPN) Sofyan Djalil said he welcomed the event as he was able to meet and discuss various issues with the property developers.

“With a forum like this, I can enrich my knowledge to be used in drafting a policy. Creating a policy must be smart,” he said.

One of the speakers in the event, Chairman of Jababeka Group S.D. Darmono said that there are three criteria to determine the success of a property development. They are time, location, and society.

“Is the time right? If the time is right and the parties involved have agreed, then we can start the project. The second is location. Many say that the most important thing in the property development is the location, location, and location,” he said.

“And the third is society. Are people ready with that property development? Or is the society ready with the arrival of investors?” he added.

According to Darmono, the property development can be started in the tourism sector, given Indonesia’s tourism is very attractive to domestic and foreign tourists.

“For example, Bali. Fifty years or even 100 years ago, people came to Bali to buy handicrafts made by the people there. Then they come again and again to Bali, both from inside and outside the country. This makes Bali become accustomed to the presence of foreigners and continues with the arrival of investors,” Chairman of Jababeka Groupsaid.

Responding to the worry that the millennial generation would not be able to afford a house, Darmono said, “The government is enormously building houses. Actually, what needed by the millennial generation who have just graduated from college and are seeking a job is a residence with a lease system. How can a new employee afford to buy a house?”

“The investors want to sell the property, but the young people need to rent. So, for these young people the rights to use is more important than the freehold certificate. The investors prefer the freehold certificate to be used as collateral for the loan, the more and the higher the value of the collaterals the higher they get the loan,” he added.

“I hope this forum is able to encourage the government to build cheap houses so many that the price will go down and the community can lease it. Also encourage the government to provide incentives to the people who want to invest and allow foreigners to buy property in Indonesia,” Chairman of Jababeka Group said.

With more houses, he added, the millennial generation will enjoy affordable houses, not to own but to live in. (TPP)