Property Investment Trends in Indonesia Shifting Towards Sustainable Development, Says Investment Ministry
The Ministry of Investment and Downstreaming/Investment Coordinating Board (BKPM) has stated that property investment trends in Indonesia are currently moving towards environmentally friendly and sustainable development.
This was conveyed by BKPM Director of Downstreaming Promotion Development Rakhmat Yulianto at the Indonesia CEO & Leaders Forum 2025: Redefining Indonesia's Sustainable and Investment-Driven Property Sector in Jakarta on Thursday (17/4/2025).
"What we need to pay attention to here is the direction of future investment trends — like it or not, we must be ready to create more sustainable products," said Rakhmat.
Furthermore, Rakhmat assessed that this would pose a challenge for the property industry following commitments to reduce carbon footprints at both national and global levels.
"This is certainly an opportunity for us. It is not just about creating new environmentally friendly residential properties, but also about how we can renovate or develop existing properties to become more sustainable," he explained.
Additionally, Rakhmat noted that a number of Indonesian consumers have already developed an awareness of the desire for greener housing.
"This is not only a demand from companies, but also from Indonesian consumers. It turns out that consumers already have an awareness of sustainability," said Rakhmat.
He continued that total carbon emissions in the property sector remain quite high, making it a task for relevant parties, including developers and the government, to find solutions for reducing these carbon emissions.
"We must not only look at the operational aspects of property itself, but also consider the social aspects of property," said Rakhmat.
In his presentation, Rakhmat stated that Indonesia has committed to achieving net zero emissions (NZE) by 2060 or sooner.
"With this commitment, the government supports carbon emission reductions in the real estate sector, which contributes approximately 40 per cent of global carbon emissions," said Rakhmat.
By applying sustainability principles in the property sector, he continued, various benefits can be delivered to companies and investors. Among these are increasing asset value and competitiveness; attracting environmentally conscious tenants; reducing operational costs through energy-efficient systems; and positively impacting brand reputation, competitive advantage, and creating long-term financial returns.
This was conveyed by BKPM Director of Downstreaming Promotion Development Rakhmat Yulianto at the Indonesia CEO & Leaders Forum 2025: Redefining Indonesia's Sustainable and Investment-Driven Property Sector in Jakarta on Thursday (17/4/2025).
"What we need to pay attention to here is the direction of future investment trends — like it or not, we must be ready to create more sustainable products," said Rakhmat.
Furthermore, Rakhmat assessed that this would pose a challenge for the property industry following commitments to reduce carbon footprints at both national and global levels.
"This is certainly an opportunity for us. It is not just about creating new environmentally friendly residential properties, but also about how we can renovate or develop existing properties to become more sustainable," he explained.
Additionally, Rakhmat noted that a number of Indonesian consumers have already developed an awareness of the desire for greener housing.
"This is not only a demand from companies, but also from Indonesian consumers. It turns out that consumers already have an awareness of sustainability," said Rakhmat.
He continued that total carbon emissions in the property sector remain quite high, making it a task for relevant parties, including developers and the government, to find solutions for reducing these carbon emissions.
"We must not only look at the operational aspects of property itself, but also consider the social aspects of property," said Rakhmat.
In his presentation, Rakhmat stated that Indonesia has committed to achieving net zero emissions (NZE) by 2060 or sooner.
"With this commitment, the government supports carbon emission reductions in the real estate sector, which contributes approximately 40 per cent of global carbon emissions," said Rakhmat.
By applying sustainability principles in the property sector, he continued, various benefits can be delivered to companies and investors. Among these are increasing asset value and competitiveness; attracting environmentally conscious tenants; reducing operational costs through energy-efficient systems; and positively impacting brand reputation, competitive advantage, and creating long-term financial returns.