Foreign Investors Could Burden Local Home Developers: Apersi

TEMPO.CO, Jakarta - The Indonesian Settlement and Housing Developers Association (Apersi) criticized the government’s plan upon inviting international investors in Indonesia’s home development industry as the association’s Chairman Junaidi Abdullah slated the move would further threaten housing developers for low-income citizens (MBR).  

“What we have built is not even absorbed [by the market], what would it be if we added foreign competition in the mix?” said Junaidi.

He argues that the existing rules tend to favor major housing developers and consumers, while in the same time setting aside the business climate for MBR home developers.

“I am certain that middle-to-lower businesses will be threatened by the move as we conduct business with limited subsidies. Take the example of the conditional sales and purchase agreement (PPJB) that notes a minimum of 20 percent that must be built. This burdens [us],” said Junaidi.

The Public Housing and Public Works (PUPR) Ministry previously encouraged foreign investments to enter Indonesia’s property development market and announced that these investors not only aims for the middle-to-upper market but also the MBR market.

“President Jokowi also requested for as many investors to invest.  The foreign developers have shown interest in MBR houses as REI (Real Estate Indonesia) has actively invited the foreign developers based on the plentiful demand from the market,” said PUPR Ministry’s Director General of Housing Provisions, Khalawi Abdul Hamid.

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