In recent years, the real estate sector in Indonesia has attracted major international investors, at levels not seen before since the Asian financial crisis in 1997.
International investors are active in the office, retail, residential, industrial and logistics markets. Although some of these sub-sectors are currently oversupplied, the longer-term attractiveness of the Indonesian real estate market remains compelling.
However, fundamental legal and regulatory issues still concern those considering real estate investment. In this bulletin, we identify and address some of these issues based on our experience advising foreign investors in this sector in Indonesia.