{"id":43042,"date":"2025-09-24T14:35:43","date_gmt":"2025-09-24T07:35:43","guid":{"rendered":"https:\/\/www.asiapropertyawards.com\/?p=43042"},"modified":"2025-09-25T14:51:17","modified_gmt":"2025-09-25T07:51:17","slug":"policy-clarity-and-collaboration-key-to-indonesias-housing-future","status":"publish","type":"post","link":"https:\/\/www.asiapropertyawards.com\/en\/policy-clarity-and-collaboration-key-to-indonesias-housing-future\/","title":{"rendered":"Policy clarity and collaboration key to Indonesia\u2019s housing future"},"content":{"rendered":"

Experts urge gradual tax reforms, infrastructure investment, and transparency as developers align with national housing goals<\/span><\/span><\/p>\n

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Policymakers and developers must collaborate through balanced incentives and regulatory clarity. <\/span>Nyanews\/Shutterstock<\/figcaption><\/figure>\n

Indonesia\u2019s real estate sector is entering a decisive phase, marked by policy shifts, ambitious housing\u00a0programmes, and the need for greater collaboration between government and developers. Recent debates over tax reform, alongside a push to deliver one million affordable vertical housing units, have underscored the balancing act\u00a0required\u00a0to achieve sustainable growth in the country\u2019s property market.<\/span>\u00a0<\/span><\/p>\n

Industry experts\u00a0emphasise\u00a0that transparent policies and regulatory clarity are vital to\u00a0maintaining\u00a0investor confidence while addressing the urgent demand for affordable housing. According to\u00a0<\/span>The\u00a0Jakarta\u00a0Post<\/span><\/a>, developers have expressed concern over government plans to raise landed house taxes, warning that a steep increase could dampen market sentiment and stall growth in the residential segment.<\/span>\u00a0<\/span><\/p>\n

Striking a balance on taxation<\/span><\/b>\u00a0<\/span><\/p>\n

One of the industry figures weighing in on this discussion is\u00a0Djinadi\u00a0Gunawan, Managing Director of PT Meinhardt Indonesia and a Member of the Judging Panel of the\u00a0PropertyGuru\u00a0Indonesia Property Awards. He stressed that policymakers and developers must work hand in hand to balance the government\u2019s fiscal\u00a0objectives\u00a0with market realities.<\/span>\u00a0<\/span><\/p>\n

\u201cPolicymakers and developers must collaborate through balanced incentives and regulatory clarity,\u201d Gunawan said. \u201cInstead of sharply raising landed house taxes, gradual adjustments paired with tax breaks for affordable housing projects could ease resistance.\u201d<\/span>\u00a0<\/span><\/p>\n

His comments reflect broader calls for compromise, as stakeholders explore ways to meet revenue needs without stifling demand. Based on Tempo.co, Indonesia\u2019s incoming government has pledged to build one million affordable vertical housing units,\u00a0signalling\u00a0the urgency of encouraging development while ensuring affordability.<\/span>\u00a0<\/span><\/p>\n

Linking taxation with infrastructure<\/span><\/b>\u00a0<\/span><\/p>\n

Gunawan also argued that tax reforms should generate visible benefits for both developers and the public. \u201cCreate benefits to the taxpayers and developers by way of improving local infrastructure,\u201d he said. Transparency, he added, must also be central to the process: \u201cTransparency to projects funded by the increased taxes\u201d would help foster trust and accountability.<\/span>\u00a0<\/span><\/p>\n

This perspective aligns with ongoing efforts to address infrastructure gaps that have historically weighed on property development. Improved transport links, utilities, and public amenities not only enhance housing projects but also stimulate long-term economic growth.<\/span>\u00a0<\/span><\/p>\n

Supporting vertical housing goals<\/span><\/b>\u00a0<\/span><\/p>\n

The government\u2019s target of building one million affordable vertical housing units\u00a0represents\u00a0a critical opportunity for collaboration. Gunawan believes developers can play a key role by aligning their projects with this national agenda.<\/span>\u00a0<\/span><\/p>\n

\u201cDevelopers should align with the government\u2019s plan to deliver one million vertical housing units by adopting cost-efficient designs and mixed-use developments that attract both locals and expatriates,\u201d he said.<\/span>\u00a0<\/span><\/p>\n

Such an approach reflects trends highlighted in\u00a0<\/span>Colliers\u2019 Quarterly Property Market Report (Q2 2025)<\/span><\/a>, which noted gradual recovery in\u00a0Jakarta\u2019s apartment sector, supported by demand from younger households and expatriates. Integrating affordability with quality urban living\u00a0remains\u00a0a core challenge, but mixed-use projects and transit-oriented developments (TODs) are increasingly seen as part of the solution.<\/span>\u00a0<\/span><\/p>\n

Streamlining regulation to boost investment<\/span><\/b>\u00a0<\/span><\/p>\n

Beyond design and affordability, the investment climate is shaped by bureaucracy and regulatory frameworks. Gunawan noted that streamlined permitting and infrastructure support would encourage greater investment while ensuring that homes\u00a0remain\u00a0within reach of the broader public.<\/span>\u00a0<\/span><\/p>\n

\u201cTransparent policies on land use, financing, and tenancy rights can balance investor confidence, urban growth, and public housing needs, fostering a sustainable and inclusive housing market in Indonesia,\u201d he added.<\/span>\u00a0<\/span><\/p>\n

Such transparency is also vital in reassuring expatriates, who continue to\u00a0represent\u00a0a key segment in Jakarta\u2019s high-end rental market.\u00a0Data from\u00a0<\/span>Colliers\u2019 H1 2025 Jakarta Expatriate Housing<\/span><\/a>\u00a0report\u00a0revealed that the\u00a0demand for premium housing is steady, supported by international schools, lifestyle amenities, and infrastructure improvements.<\/span>\u00a0<\/span><\/p>\n

Market outlook<\/span><\/b>\u00a0<\/span><\/p>\n

Despite challenges, Indonesia\u2019s property sector shows resilience. An\u00a0<\/span>OpenPR<\/span><\/a>\u00a0industry outlook for 2025 reported steady growth across key segments, with developers diversifying portfolios to capture demand in both affordable and luxury markets. Strategic projects in Greater\u00a0Jakarta\u00a0and secondary cities continue to shape the landscape, reflecting the country\u2019s\u00a0urbanisation\u00a0and demographic shifts.<\/span>\u00a0<\/span><\/p>\n

The ability to balance government initiatives, such as taxation reform and affordable housing delivery, with investor needs will be crucial in sustaining this momentum. Developers, policymakers, and financiers must navigate these dynamics with careful planning and\u00a0open\u00a0dialogue.<\/span>\u00a0<\/span><\/p>\n

Awards highlight Indonesia\u2019s achievements on a regional stage<\/span><\/b>\u00a0<\/span><\/p>\n

Amid these structural discussions, Indonesian developers have\u00a0demonstrated\u00a0their ability to compete \u2014 and win,\u00a0at the highest levels. At the\u00a0<\/span>19th PropertyGuru Asia Property Awards Grand Final 2024<\/span><\/a>, Indonesian companies earned recognition across multiple categories, underscoring their capacity for innovation and excellence on a regional stage.<\/span>\u00a0<\/span><\/p>\n

Among the winners were:<\/span>\u00a0<\/span><\/p>\n