Property Sector Ranks Fourth Largest Contributor to Indonesia's Investment Realisation in 2024
JAKARTA — The property sector, particularly housing, industrial estates, and office space, ranked fourth as the largest contributor to investment realisation in 2024.
Director of Promotion Development at the Ministry of Investment/Investment Coordinating Board (BKPM), Rakhmat Yulianto, said total investment realisation flowing into Indonesia in 2024 reached Rp 1,714.2 trillion. The property sector contributed 7.2 per cent of that figure, equivalent to Rp 122.9 trillion.
"If we look at the average over the past five years, the contribution has nearly reached 10 per cent, at 9.33 per cent," he said during a media briefing at The Westin Jakarta, South Jakarta, on Thursday (17 April 2025).
Property investment over the past five years has predominantly come from domestic sources, with a total value of Rp 350.13 trillion, or 65 per cent of the Rp 541.32 trillion in total investment inflows.
"From foreign sources, Singapore still plays the most significant role as it holds the largest value, followed by China and Hong Kong," he said.
Over the past five years, Singapore contributed US$5.04 billion in property investment, China US$2.17 billion, and Hong Kong US$1.58 billion.
Yulianto also noted that future property development trends are moving towards sustainable construction. This trend must continue to be encouraged in line with Indonesia's commitment to achieving Net Zero Emissions (NZE) by 2060, even as the United States has signalled a return to unsustainable industrial development.
"This is certainly an opportunity for us — not only to create new environmentally friendly residential properties, but also to renovate or develop existing properties to become more sustainable," he explained.
Director of Promotion Development at the Ministry of Investment/Investment Coordinating Board (BKPM), Rakhmat Yulianto, said total investment realisation flowing into Indonesia in 2024 reached Rp 1,714.2 trillion. The property sector contributed 7.2 per cent of that figure, equivalent to Rp 122.9 trillion.
"If we look at the average over the past five years, the contribution has nearly reached 10 per cent, at 9.33 per cent," he said during a media briefing at The Westin Jakarta, South Jakarta, on Thursday (17 April 2025).
Property investment over the past five years has predominantly come from domestic sources, with a total value of Rp 350.13 trillion, or 65 per cent of the Rp 541.32 trillion in total investment inflows.
"From foreign sources, Singapore still plays the most significant role as it holds the largest value, followed by China and Hong Kong," he said.
Over the past five years, Singapore contributed US$5.04 billion in property investment, China US$2.17 billion, and Hong Kong US$1.58 billion.
Yulianto also noted that future property development trends are moving towards sustainable construction. This trend must continue to be encouraged in line with Indonesia's commitment to achieving Net Zero Emissions (NZE) by 2060, even as the United States has signalled a return to unsustainable industrial development.
"This is certainly an opportunity for us — not only to create new environmentally friendly residential properties, but also to renovate or develop existing properties to become more sustainable," he explained.