Investment Opportunity in Indonesia Real Estate s Sector

Transcription

1 Investment Opportunity in Indonesia Real Estate s Sector Director, of Investment Planning for Services and Economic Zones Real Estate Investment Indonesia, Jakarta, 24 September 2018

2 1 Investment Target and Realization, Investment Performance in Real Estate Sector, /tw2 3 The Opportunity and Government Support 2

3 Investment Target Indonesia Total DDI and FDI IDR1,634,7 Trn +115% Growth in 5 years period IDR Trn Renstra In IDR Trillion * ** FDI 343,7 386,4 429,0 494,7 477,4 569,9 519,3 DDI 175,8 208,4 249,8 297,8 287,6 363,0 330,7 Total 519,5 594,8 678,8 792,5 765,0 933,0 85 Growth 12,2% 14,5% 14,1% 16.8% 12,8% 17,7% 11,1% +15.1% Average growth per year 519,5 545,4 Note: *) Based on 2018 Budget (RKP), to support economic growth at 5,4%. **) Based on 2019 Budget proposal 594,8 612,8 678,8 692,8 792, , Renstra RKP Realization Sem Based on SOURCE OF INVESTMENT FDI : 63.6% DDI : 36.4% Based on SECTOR Primary : 15.7% Secondary : 53.5% Tertier : 30.8% Based on LOCATION Java : 46.5% Out of Java : 53.5% Source : Renstra BKPM (processed) 3

4 Investment Commitment and Realization, /Tw1 Total investment commitment (registered) /Tw1 reached IDR 8.239,1 Trillion, consist of: FDI IDR 5.415,7 Trn (65,7%) and DDI IDR 2.823,4 Trn (34,3%). Total investment realization /Tw1 reached IDR 2.036,4 Trn, consist of: FDI IDR 1.302,0 Trn (63,9%) and DDI IDR 734,4 Trn (36,1%). Investment realization performance /Tw1 only 27,1% (Stocknet IDR 6.007,3 Trn or 72,9%). Investment realization performance compare to Investment commitment per region, /Tw1 Commitment (% of Total Commitment) Java IDR 3.477,2 Trn (42,2%) Sumatera IDR 2.014,8 Trn (24,5%) Kalimantan IDR 1.015,5 Trn (12,3%) Realization (% of Total Realization) Java IDR 1.126,9 Trn (55,3%) Sumatera IDR 349,5 Trn (17,2%) Kalimantan IDR 251,1 Trn (12,3%) Sumatera Kalimantan 24,7% Sulawesi IDR 1.265,5 Trn (15,4%) Sulawesi IDR 154,1 Trn (7,6%) 17,3% Sulawesi 27,6% Java 32,4% Bali & NT 18,1% Maluku & Papua 76,7% Bali & South East Nusa IDR 346,2 Trn (4,2%) Maluku & Papua IDR 119,9 Trn (1,4%) Bali & South East Nusa IDR 62,8 Trn (3,1%) Maluku & Papua IDR 92,0 Trn (4,5%) Source: BKPM, 2018 (processed) 4

5 Investment Realization /Semester I Realization in Numbers (DDI & FDI) Based on Location (DDI & FDI) Total PMDN IDR 815,0 Trillion (36,8%) Sumatera IDR 380,1 T (17,2%) Kalimantan IDR 279,4 T (12,6%) Sulawesi IDR 164,8 T (7,4%) Maluku & Papua IDR 97,6 T (4,4%) IDR 2.212,7 Trillion PMA IDR 1.397,7 Trillion (63,2%) Java IDR 1.221,3 T (55,2%) Bali & Nusa Tenggara IDR 69,4 T (3,1%) Investment realization T W2 reached IDR 2.212,7 trillion consisting of FDI IDR 1.397,7 trillion (63,2%) and DDI IDR 815,0 trillion (36,8%). Based on Country Origin (FDI) Investment realization in outside Java Island reached IDR 991,4 trillion (44.8%). Investment realization in Java Island reached IDR 1.221,3 trillion (55,2%). Based on Sectors (DDI & FDI) Hongkong, PRC US$ 6,0 B (6,0%) Malaysia, US$ 5,9 B (5,9%) Transportation, Warehouse, andtelecommunication IDR 199,6 T (9,0%) Food Industry IDR 199,2 T (9,0%) PRC US$ 7,4 B (7,4%) Japan US$ 14,7 B (14,7%) Singapore US$ 26,4 B (26,3%) Others US$ 39,7 B (39,7%) Metal, Machinery, & Electronic Industry IDR 211,6 T (9,6%) Mining IDR 219,2 T (9,9%) Others IDR 1.149,0 T (51,9%) Electricity, Gas, & Water Supply IDR 234,1 T (10,6%) 5

6 Investment Realization /Semester I: Based on sector Primary Sector Secondary Sector Tertiary Sector ,8 95,1 89,3 124, CAGR: 11.3% CAGR: 19.4% 335, ,8 236,0 199, , ,4 188,1 293, /tw /tw /tw1 DDI FDI Total DDI FDI Total DDI FDI Total Top 5 Sub sectors Secondary Sector Top 6 Sub sectors Tertiary Sector Food Industry Basic Metal, machinery & electronic Industry Basic Chemical & pharmaceutical Industry Otomative Industry Non Metal Industry Electricity, Gas & Water 51,3 151,2 202,5 Transportation, Housing, Industrial warehouse & Estate & Offices Telecomunication Construction Trading & Repairing 63,8 47,0 16,8 Hotel & Restauran DDI FDI Total DDI FDI Total Investment in Housing, Industrial Estate & Office Building and Hotel & Restaurant contributed significantly to investment in tertiary sector with totally /tw2 reach IDR 202,5 Trn and IDR 63,8 Trn respectively. Source: BKPM, 2018 (processed) 6

7 Property subsector has contributed 24% to investment in tertiary... Housing, Industrial Estate & Office Building Sub sector Hotel & Restaurant Sub sector 45,0 4 35,0 3 25,0 2 15,0 1 5,0 CAGR: 29.3% 55,6 36,9 41,0 25, /Sem ,0 14,0 12,0 1 8,0 6,0 4,0 2,0 CAGR: 39.1% 19,4 12,1 13,8 7, /Sem1 25,0 2 15,0 1 5,0 DDI FDI Total DDI FDI Total Contributed 18% to total investment in tertiary sector and grew CAGR 29% in period. 99% has been dominated by real estate business to be owned or leased (including industrial estate property). Investment realization in 2017 amounted IDR 55,6 Trn or increase 36% yoy. Up to 1 st Semester/2018, investment realization reached IDR 43,4 Trn (more than 2016 figure). 70% dominated by FDI in average. FDI in 1 st Semester/2018 merely close to FDI in 2017 figure. Contributed 6% to total investment in tertiary sector and grew CAGR 39% in period. 86% has been dominated by Star hotel, 9% by Non star hotel, and restaurant for the rest. Investment realization in 2017 reached IDR 19,3 Trn or increase 41% yoy. Up to 1 st Semester/2018, investment realization amounted IDR 11,4 Trn (merely the same to 2015 figure). 77% dominated by FDI in average. FDI in 1 st Semester/2018 reached IDR 6,7 Trn (close to FDI in 2015 figure). Government support in the development of economic zones (RPJMN), the obligation of industrial activities to be located in the Industrial Estate (under Industrial Law), and push the tourism sector as priority have been push-impact to investment in property sector. Source: BKPM, 2018 (processed) 7

8 Five (5) Investment Priority Sectors Infrastructure Energy, transportation, road, railway, airport, seaport Lifestyle Industry e.g: Creative Industry, culinary, fashion Including : Special Economic Zone (SEZ) Maritime Including fishery and cold storage Industrial Estate (IE) Tourism 10 Tourism Destination ( 10 New Bali ) Manufacturing Industry Labor intensive, Export orientation, Import substitution, and Value-added Industries 8

9 Economic Zones as Strategic Location for Investment (SEZ, IE, KPBPB/FTZ, KSPN) 12 SEZs (Special Economic Zone) Total Area : ,72 Ha INDONESIA 83 IEs (Industrial Estate) large scale Total Area : :75.288,49 Ha 47 IEs Implementation location for Direct Construction Facility/KLIK (Kemudahan Investasi Langsung Konstruksi) Total Area : ,85 ha Jakarta 4 KPBPB/FTZ (KawasanPerdaganganBebasdanPelabuhan Bebas/Free Trade Zone) Total Area : Ha 10 KSPN (National Tourism Strategic Zone) 9

10 Fiscal Incentives and Facility for Investment Tax Holiday Tax Allowance Import Duty Facility (MoF Regulation No. 35/PMK.010/2018, BKPM Reg No 5/2018) 5-20 years tax exemption* With another 50% tax exemption for additional 2 years (transitional period). (Government Regulation No.9/2016) 30 % of investment value Reduction of coidrorate net income tax for 6 years, 5% each year. (MoF Regulation No.176/PMK.011/2009 juncto. No. 188/PMK.010/2015) a. Machinery/equipment import duty exemption b. Raw materials for production *) Based on value of investment threshold. 17 eligible pioneer industries: 1. Basic metal industries; 2. Oil refinery industries ; 3. Petrochemical industries from oil, gas, or coal; 4. Basic an-organic chemicals 5. Basic an-organic chemicals from agriculture, plantation, or forestry; 6. Basic material industry for pharmaceutical ; 7. Semi-conductor and other computer main component industries; 8. Main component industry for telecommunication; 9. Main component industry for medical devices; 10. Machinery industries; 11. Machinery industries for automotive; 12. Main component industry for robotic; 13. Main component industry for marine transportation; 14. Main component industry for airlane; 15. Main component industry for railway; 16. Electric Power Generation industries; 17. Economic infrastructure. 0,5 trillion Minimum investment plan (USD 38 million). IDR 145business fields Eligible for tax allowance, expanded from 143 segments in the previous regulation with additional segment: clothing industry. Under certain requirements among others: investment value or export orientation, manpower absoption, local content, and project location (especially outside Java island). - 2 years import duty exemption or - 4 years for companies using locallyproduced machines/equipment (min.30%). Industries Which produces goods and/or services, including: 1) Tourism and culture 2) Public transportation 3) Public health services 4) Mining 5) Construction 6) Telecommunication 7) Port 10

11 OSS Implementation Perizinan Berusaha Terintegrasi Secara Elektronik (PBTSE)/ Online Single Submission (OSS) INVESTOR INTEGRASI SISTEM Note: 1) Operate in Coordinating Ministry for Economic Affairs for 6 months 2) PTSP-BKPM provide investment services for 29 licenses (exclude OSS) 11

12 The Current Implementation of Business Licensing Services Regulated in PP No. 24 Tahun 2018 Has not regulated in PP No. 24 Tahun 2018*) 488 (20 Sectors) Licenses process through OSS 29 (16 Sectors) Licenses still process through PTSP in BKPM (per 9 July 2018) Electricity; Agriculture; Environmental and forestry; Public Works and Public Housing; Marine and Fisheries; Health; Medicine and Food; Industry; Trading; Transportation; Communication and Information Technology; Finance; Tourism; Education and culture; Higher education; Religion; Employment; Police; Micro, Small, and Medium-Scale Enterprises and Cooperatives Electricity; Agriculture; Environmental and forestry; Public Works and Public Housing; Marine and Fisheries; Health; Industry; Trading; Transportation; Communication and Information Technology; Finance; Tourism; Education and culture; Employment; Police; BKPM Notes: The implementation of Business Licensing that is not regulated in PP 24/2018 still process based on regulation in related sector. The coordinating minister who organizes government affairs in the economic field will evaluates and reforms the regulation on business licensing as intended for a maximum of 6 (six) months after this Government Regulation is promulgated. Sumber: Kemenko Perekonomian 12

13 Investment Opportunity in Property subsector 1 Indonesia market opportunities (GDP USD 1 Trillion and GDP per capita USD in 2017, 70 million middle income class) 2 Promote stable and sustain macro economy 3 Development economic zone drives the property demand in selected region 4 The present of agglomeration in new metropolitan city development, lack of affordable housing supply (backlog di Sumut, Jatim, Jabar, dll) 5 Infrastructure development in public transportation (MRT, LRT) will contribute to the development of Transit Oriented Development (TOD) 6 High demand for Industrial area due to a large numbers of investment in manufacturing sector 13

14 Indonesia Investment Promotion Centre (IIPC) Badan Koordinasi Penanaman Modal (BKPM) Indonesia Investment Coordinating Board Jalan Jenderal Gatot Subroto No. 44 Jakarta Indonesia t f e info@bkpm.go.id bkpm.go.id investindonesia.go.id