This may make Indonesia a perfect value opportunity for the informed as various indicators suggest demand will pick up in H2 2019.

Indonesia, located in Southeast Asia between the Indian and Pacific oceans is the world’s largest island country with more than seventeen thousand islands and is also the world's fourth most populous country. It has the fastest growing tourism sector in Southeast Asia.

While Indonesia’s macro fundamentals have been relatively stable, oversupply in the office market and patchy demand in the residential market have created challenging hurdles for unwary investors. This. however, may make Indonesia a perfect value opportunity for the informed as various indicators suggest demand will pick up in H2 2019. Additionally, an incoming millennial demand segment may create niche opportunities in the co-living and multi-family development spaces.

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Indonesia
Economy Indonesia’s economy has shown stability with 2Q19 growth at a healthy 5.05 percent despite fears of a global growth slowdown coursing through Asia. Additionally, fears of U.S. interest rate hikes, which could spur capital withdrawal, have mellowed and Indonesia’s capital flows have improved significantly since mid-2018. Private and government consumption have also both accelerated and external debt to GDP is at a sturdy 36%. Indonesia is vulnerable to the slowdown in recent commodity prices but, fortunately, there is still a lot of room for secular growth.
Legal Foreigners cannot buy property or land in Indonesia. However, right-to-use, right-to-lease, and right-to-build approvals can be obtained, including through a PMA company structure for investors that work actively in Indonesia.
Regions Indonesia is divided into seven geographical units: Java, Kalimantan, Maluku Islands, Lesser Sunda Islands, Western New Guinea, Sulawesi, and Sumatra. Indonesia is also often divided into 34 provinces, which are then further segmented into regencies and cities.

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