“ Indonesia has a huge and consumption driven domestic market and so the demand for property is set to experience a steady growth trajectory in the future. ”
Grahaniaga Tatautama has been in property development and property management since 1993 and we have earned the reputation for our attention to detail in every aspect of building management. We are an innovative company and can adapt to change hence why we emphasise on providing the best quality property that can cater to various segments. Furthermore, we offer the highest standards of service for our tenants as well as our buyers; we do monthly as well as yearly surveys to our tenants as a means of continuously improve upon our services and identify any problems that tenants may have. As such, we have an open door policy as part of our corporate culture and therefore we welcome feedback from our clients. This has enabled us to maintain a high level of client loyalty and an occupancy level of 100%.
Going forward, we have the potential to further expand in office development as this is our strength as well as hotel properties. We would like to acquire properties near upcoming public transportation hubs such as the MRT locations because development along these areas would mean premium value in terms of selling price and rental. However, due to the rising competition in these segments, we believe that improving our facilities is the optimal strategy before we expand. For example, we have improved our public facilities at one of our properties which provide greater comfort to our tenants in addition to better safety standards.
We are also committed to raising awareness on green development, and our company has been recognised for its environmentally-friendly initiatives by the Building and Construction Authority in Singapore who awarded us with the Platinum Certificate. This illustrates how we are able to meet the highest standards for eco-friendly strategies. Among other achievements, we also have certifications in ISO 9001 and ISO 14000 exemplifying our company’s ability to adopt to international standards. We believe that as a company in the property sector, we have a duty to contribute to sustainable development.
The outlook for the property industry looks promising given the numerous opportunities that remain in Indonesia. Among these include the country’s GDP growth that is driven by a large consumption-driven domestic market. Additionally, the housing backlog has also presented us with the opportunity to capitalise on this demand. Moving forward, this will be more attractive taking into consideration the country’s rising middle-class seeking properties. Finally, political stability is an important factor for the growth and sustainability of our industry particularly because investment in property is often a long-term business venture.
The government’s efforts to reduce bureaucracy and streamline regulations will certainly help the property sector in Indonesia. However, the government must also be firm when issuing and maintaining regulations so as to minimise uncertainty. Furthermore, the acceleration of infrastructure projects is necessary to help spur growth in our industry. To complement this prospective growth trajectory, the government would also need to move ahead with its power acceleration projects as this is especially important to support the growth of the industrial property sector.
From a consumer market perspective, the administration should assist with financing tools such as by offering a competitive interest rate and longer terms for mortgage loans in order to better support the middle-class demographic. In relation to this, I believe that opening up property ownership to foreigners under the ‘Right to Build’ title with conditions would also strengthen Indonesia's property industry.
The start of the AEC presents us with immense market opportunities to explore various business areas. Nonetheless, Indonesia’s domestic market remains our primary target market as there is still a large housing backlog that has yet to be fully capitalised upon. Grahaniaga Tatautama’s local knowledge would enable us to serve as a reliable partner for regional investors.
Moreover, development of industrial properties will continue to rise as the country’s business climate becomes more attractive. The hospitality and tourism industry also presents opportunities for property development with the government seeking to make Indonesia a tourism destination hub in Southeast Asia.
We are very open to working with foreign investors for joint venture, technology transfer as well as capital investment. Our company also believes that technology transfer in the form of knowledge sharing can better streamline our business and enable us to develop new strategies and business opportunities.
We aim to become a public company within the next 5 to 10 years hence we need to expand our portfolio. As such, we need to initiate cooperation to realise our goal. Moreover, our comprehensive know-how of the industry combined with our experience means international investors have a reliable local partner which is important in order to succeed in Indonesia’s property sector.
Indonesia has a large domestic market and an abundance of natural resources which presents a big opportunity for international investors to invest in the country. Investors interested in Indonesia should not miss the boat taking into consideration the country’s strong growth potential for properties.