European Interest in Indonesian Residential and Commercial Property Grows, Says Consultant
Property consultancy Knight Frank Indonesia assesses that business players from the European Union are interested in residential and commercial property in Indonesia.
“If we divide the property sector into two, residential and commercial, I think for residential we will be strong in luxury or premium residential. Both strata-title apartments and rental apartments, I think those two are good,” said Knight Frank Indonesia Senior Research Advisor Syarifah Syaukat during an online press conference in Jakarta on Thursday.
She said that based on Knight Frank Indonesia’s research, Europeans are among the tenants widely spread across the Central Business District (CBD) of Jakarta and prime non-CBD areas for rental apartments.
For the commercial property sector, she continued, they have preferences for certain sectors that intersect with or will have implications for industry and logistics.
The first sector in commercial property is renewable energy. Then technology such as data centres, which are not only coming in from Asia but also from Europe and the United States.
“Then those related to electric vehicles (EV), in this case particularly for critical minerals whose resource-based value is in Indonesia. Critical minerals related to EVs are also a sector being collaborated on by European investors, which we see will move forward or open opportunities for the industrial and logistics sectors,” she said.
For information, the Ministry of Trade has revealed that the signing of the Indonesia-EU Comprehensive Economic Partnership Agreement (IEU-CEPA) is targeted for the fourth quarter of this year.
Director of Bilateral Negotiations at the Directorate General of International Trade Negotiations of the Ministry of Trade, Basaria Tiara Desika L Gaol, familiarly known as Tiara, explained that last year there was already a signing of the agreement between both parties, Indonesia and the European Union.
Indonesia was represented at that time by Coordinating Minister for Economic Affairs Airlangga Hartarto to substantially agree on the contents of the IEU-CEPA. So, it was substantially concluded in September 2025.
Following that, the legal scrubbing process has been completed. Therefore, the signing of the Indonesia-EU Comprehensive Economic Partnership Agreement (IEU-CEPA) is expected to be carried out in the fourth quarter of this year.
Hopefully, she continued, the ratification process can be completed quickly so that by the first quarter of 2027 the entire process can be finalised and in that period it will be ready for implementation (entry into force), so that it can directly assist the business community.