Indonesia's Property Investment Trend Shifting Towards Sustainability, Says BKPM Official
Jakarta — Director General of Investment Promotion and Development at the Investment Ministry/BKPM, Rakhmat Yulianto, stated that Indonesia's property investment trend is currently moving towards environmentally friendly and sustainable development.
"What we need to pay attention to is how future investment trends are shaping up. Whether we like it or not, we must be prepared to create more sustainable products," Rakhmat said during his address at the "Indonesia CEO and Leaders Forum 2025: Recalibrating Indonesia's Sustainable and Investment-Oriented Property Sector" held in Jakarta on Thursday, 17 April, as quoted by Antara.
Furthermore, Rakhmat assessed that commitments to reduce carbon footprints both domestically and globally would pose challenges for the property industry.
"However, this is certainly an opportunity for us — not only in terms of how we create new residential or environmentally friendly properties, but also how we renovate or develop existing properties to make them more sustainable," he explained.
Rakhmat also noted that some Indonesian consumers have already developed an awareness of owning greener housing.
"If we look not only at corporate demands but also at those of Indonesian consumers, consumers are already aware of this sustainability agenda," Rakhmat said.
He continued that the total carbon emissions from the property sector remain considerably high, making it incumbent upon relevant parties, including developers and the government, to find solutions for reducing carbon emissions.
"It is not only about the operational aspects of properties themselves; we must also consider the social dimensions of property," he said.
In his address, Rakhmat stated that Indonesia has committed to achieving net-zero emissions by 2060 or earlier.
"Through this commitment, the government supports reducing carbon emissions in the property sector, which according to JLL 2022, accounts for approximately 40 per cent of global carbon emissions," Rakhmat said.
He added that implementing sustainability principles in the property industry could deliver various benefits for companies and investors, including increasing asset value and competitiveness, attracting environmentally conscious tenants, reducing operational costs through energy-efficient systems, and generating positive impacts on brand reputation, competitive advantage, and long-term financial returns.
"What we need to pay attention to is how future investment trends are shaping up. Whether we like it or not, we must be prepared to create more sustainable products," Rakhmat said during his address at the "Indonesia CEO and Leaders Forum 2025: Recalibrating Indonesia's Sustainable and Investment-Oriented Property Sector" held in Jakarta on Thursday, 17 April, as quoted by Antara.
Furthermore, Rakhmat assessed that commitments to reduce carbon footprints both domestically and globally would pose challenges for the property industry.
"However, this is certainly an opportunity for us — not only in terms of how we create new residential or environmentally friendly properties, but also how we renovate or develop existing properties to make them more sustainable," he explained.
Rakhmat also noted that some Indonesian consumers have already developed an awareness of owning greener housing.
"If we look not only at corporate demands but also at those of Indonesian consumers, consumers are already aware of this sustainability agenda," Rakhmat said.
He continued that the total carbon emissions from the property sector remain considerably high, making it incumbent upon relevant parties, including developers and the government, to find solutions for reducing carbon emissions.
"It is not only about the operational aspects of properties themselves; we must also consider the social dimensions of property," he said.
In his address, Rakhmat stated that Indonesia has committed to achieving net-zero emissions by 2060 or earlier.
"Through this commitment, the government supports reducing carbon emissions in the property sector, which according to JLL 2022, accounts for approximately 40 per cent of global carbon emissions," Rakhmat said.
He added that implementing sustainability principles in the property industry could deliver various benefits for companies and investors, including increasing asset value and competitiveness, attracting environmentally conscious tenants, reducing operational costs through energy-efficient systems, and generating positive impacts on brand reputation, competitive advantage, and long-term financial returns.