Indonesia’s Property Market Stays Resilient Amid Escalating US-China Trade War

Jakarta. Despite escalating global trade tensions, Indonesia’s property market remains strong -- especially among middle- and upper-middle-class investors --according to industry insiders.
The ongoing trade war between the United States and China has cast a shadow over global economic stability. US President Donald Trump’s latest round of tariff hikes, including reciprocal duties reaching up to 32 percent on Indonesian goods, has been temporarily suspended under a 90-day truce. However, tariffs on Chinese imports remain in place, prolonging uncertainty across markets.
While many investors have taken a cautious, wait-and-see approach, the real estate sector has shown remarkable resilience. The Indonesian Real Estate Broker Association (Arebi) says property remains a favored asset class even in times of volatility.
“Amid global uncertainty, property investment continues to hold its appeal,” said Clement Francis, Chairman of Arebi, during a focus group discussion hosted by B-Universe Media Holdings in Pantai Indah Kapuk 2 (PIK 2) on Thursday.
Clement cited a recent success story to illustrate the point: “Before attending this event, I met with a developer in South Tangerang who managed to sell Rp 700 billion [approximately $41.6 million] worth of residential units in just the past three months.”

He attributed the sustained demand to Indonesia’s growing urban population and the increasing need for housing in major cities. “This clearly shows that real estate remains an attractive investment,” Clement added.
Government data supports the trend. According to the Investment Coordinating Board (BKPM), the property sector has consistently contributed more than 9 percent of total investment in Indonesia over the past five years.
Last year alone, domestic investors poured Rp 30 trillion ($1.8 billion) into property, said Rahmad Yulianto, BKPM’s Director of Development and Promotion, in a separate discussion in Jakarta.
“The sector has made a significant contribution, averaging 9.3 percent of total investments over the past five years,” he added.
Despite the challenging global outlook, Indonesia’s property sector appears to be weathering the storm—buoyed by local demand and long-term investor confidence.
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