Nusa Dua. Indonesian property developers are offering projects worth billions of dollars to global investors during the Global Business Summit of the International Real Estate Federation, or FIABCI, in Nusa Dua, Bali, this week.
Real Estate Indonesia (REI) chairman Soelaeman Soemawinata said 600 representatives of property developers from 72 countries are attending the first FIABCI summit to be held outside Europe.
They are joined by about 1,000 industry representatives from across the archipelago for the summit with the theme "Affordable Housing and International Tourism Development," which is taking place at the Bali International Convention Center from Wednesday to Saturday.
REI held its annual national work meeting on Wednesday.
Soelaeman, better known as Eman, said Indonesian property industry players offer business-to-business partnerships in various projects while also promoting potential tourism destinations, including the so-called "10 New Balis," such as Tanjung Lesung in Banten, Mandalika in West Nusa Tenggara and the Thousand Islands in Jakarta, which the government currently actively promotes.
Eman said the sheer size of these projects necessitates local developers to seek partners from overseas.
"There are many reports of foreign companies seeking to invest in Indonesia's hotel and resort sector. Mainly from Japan, Korea, Hong Kong, China, the Middle East and Europe," he said.
The disclosed value of the projects on offer during this week's summit amount to $4.7 billion, while the value of several are marked "to be disclosed."
One of the largest on offer is AKR Grand Estate Marina City, an integrated 800-hectare township in Gresik, East Java. The $1.75 billion project, undertaken by AKR Land Development, will be integrated into the existing 3,000-hectare Java Integrated Industrial and Port Estate.
Indonesian tycoon Hary Tanoesoedibjo presented several projects, including MNC Bali Resort, a hotel, villas, condominiums and country club, built in partnership with a company affiliated with United States President Donald Trump. Another is MNC Lido City, a 3,000-hectare integrated development incorporating a theme park rivaling Singapore's Universal Studios, complete with premium entertainment facilities and leisure centers.
Permit HurdlesTo improve the investment climate and attract foreign investors, REI called on the government to further streamline the permit process, seen as a major obstacle by private companies seeking to invest in Indonesia's property and tourism sectors.
"The problem is not the central government. If we break down the permit process, about 95 percent of permissions are issued by local governments. The central government should think of a solution to integrate everything under one roof," REI deputy chairman Hari Gani said.
Hari said foreign companies interested in investing in Indonesia are attracted by potential in the tourism sector. He expressed hope that this year's FIABCI Global Business Summit would yield a positive outcome for the property sector in Indonesia.
Analysts have attributed slower sales in the property sector to stagnant consumer purchasing power in the country.
Hari said the property industry exponentially affects up to 174 downstream industries, which in turn affects the country's overall economic performance. Indonesia, the world's fourth most populous nation, currently faces a housing backlog of a staggering 11.4 million units.