30 March 2023
The 10 Biggest Banks in the World, 1-4 Controlled by China! Is there Indonesia?
Jakarta, CNBC Indonesia - The banking crisis that has hit the United States (US) and Europe has begun to spread and has caused great concern among market players. Even though Indonesia itself is said to have strong bank defense, it is starting to be vigilant and monitoring developments.
How could it not be, the banking crisis that occurred involved a row of large world-class banks. Call it Credit Suisse, Deutsche Bank, JPMorgan Chase and several other banks such as Silicon Valley Bank, Signature Bank and Silvergate.
It should be noted, the banking industry itself is a highly regulated business and has tight supervision, compared to other financial industries. This indicates that the global economic conditions are not doing well. Then who are the biggest banks in the world?
1. Industrial and Commercial Bank of China (ICBC) US$ 5.53 trillion
Founded in Beijing in 1984, Industrial and Commercial Bank of China (ICBC) is the world's largest bank by asset value, with more than US$ 5.53 trillion at its last accounting.
It is one of China's "Big Four" state-owned banks that dominate this list. ICBC has a global network with operations in 42 countries and territories.
ICBC claims to have more than 530 million personal banking customers and 5.7 million corporate banking customers.
2. China Construction Bank Corporation (CCBC) US$ 4.76 trillion
Headquartered in Beijing, China Construction Bank Corporation (CCBC) was founded in 1954 and is currently chaired by Wang Hongzhang.
The company has assets of US$ 4.76 trillion and is under the ownership of the Chinese government's Ministry of Finance - although for a short period of time Bank of America held a 10% stake in CCBC.
The bank, which operates in retail banking, corporate banking, investment banking, private equity and wealth management services, has more than 13,600 domestic branches, as well as a number of overseas operations including in Europe, Hong Kong to the US.
3. Agricultural Bank of China (US$ 4.57 trillion)
The Beijing-based Agricultural Bank of China was founded in 1951, after a merger between the two main banks present to help farmers, namely the Cooperation Bank and the Farmers Bank of China.
With total assets of more than US.57 trillion, the bank says it has around 320 million retail customers, 2.7 million corporate clients and 24,000 branches across mainland China. As well as branches in Hong Kong, London, Tokyo, New York, Frankfurt, Sydney, Seoul and Singapore.
4. Bank of China (US$ 4.20 trillion)
The last member of the Chinese banking gang is the Bank of China which was founded in 1912 and is the oldest bank still operating in mainland China having its headquarters in Beijing.
At its inception, the bank was officially licensed to issue banknotes throughout mainland China, but now that privilege can only be exercised in two special administrative regions, Hong Kong and Macau.
Bank of China has assets of more than US.20 trillion and is the Chinese bank with the largest global reach and operations in 51 countries and regions.
Its core business is commercial banking, including corporate banking, personal banking and financial market services.
5. JP Morgan Chase (US$ 3.74 trillion)
The largest bank in the US, JP Morgan Chase in its current iteration was founded in 2000 and is the result of several mergers and acquisitions, including Chase Manhattan Bank, JP Morgan, Bank One, Bear Stearns, and Washington Mutual.
Currently based in New York and led by CEO Jamie Dimon, the bank has over .74 trillion in assets.
The bank is engaged in a variety of financial services under several divisions, including retail banking under the Chase brand and corporate banking under the Morgan brand.
JP Morgan Chase currently employs more than 25,000 people and is present in hundreds of markets.
6. Mitsubishi UFJ Financial Group (MUFG) US$ 3.17 trillion
Headquartered in Tokyo, Mitsubishi UFJ Financial Group (MUFG) is the largest financial services company in Japan which was the result of a merger between Mitsubishi Tokyo Financial Group and UFJ Holdings in 2005. This bank is engaged in retail banking, investment management and retail management.
7. Bank of America (BofA) US$ 3.16 trillion
Bank of America is the second largest financial institution in the US. It is currently based in Charlotte, North Carolina, but was founded in San Francisco in 1904 as the Bank of Italy to serve the area's working-class citizens, especially Italian-American immigrants.
Incorporation in its current form occurred in 1998, following a US billion acquisition by NationsBank, and has a significant footprint in the wealth management and investment sector under the Merrill Lynch brand.
8. HSBC (US$ 2.95 trillion)
London-based multinational bank HSBC is Europe's largest financial institution. The company serves more than 39 million customers through four global businesses, from retail banking and wealth management to commercial banking.
HSBC operates in 66 countries and territories across Europe, Asia, the Middle East and Africa, North America and Latin America. Although now based in England, HSBC has roots in Hong Kong where it was first founded in 1866.
9. BNP Paribas (US$ 2.90 trillion)
BNP Paribas in its current form is the result of the merger of the Banque Nationale de Paris (BNP) and Paribas in 2000.
Based in Paris, BNP employs around 200,000 people in 72 countries, with two main focuses on its business - retail and corporate banking.
The bank serves nearly 32 million individual customers and 850,000 professionals, entrepreneurs, SMEs and large corporate clients through its retail banking network.
10. Crédit Agricole (US$ 2.67 trillion)
Based in Montrouge, France, Crédit Agricole is the second largest bank in the country and the third largest in Europe. Crédit Agricole is also the largest cooperative financial institution in the world.
The company was founded in 1894 as a lender to the agricultural industry, and after undergoing a number of institutional transformations, has today developed into one of the world's giant banks.
Meanwhile, there are no banks from Indonesia in the list of the world's 100 largest banks in terms of assets. However, the Southeast Asia region sent three representatives, namely the big three from Singapore. DBS is the largest (US$ 509 billion), followed by OCBC and UOB.
https://www.cnbcindonesia.com/market/20230330084133-17-425721/10-bank-terbesar-di-dunia-1-4-dikuasai-china-ada-indonesia
How could it not be, the banking crisis that occurred involved a row of large world-class banks. Call it Credit Suisse, Deutsche Bank, JPMorgan Chase and several other banks such as Silicon Valley Bank, Signature Bank and Silvergate.
It should be noted, the banking industry itself is a highly regulated business and has tight supervision, compared to other financial industries. This indicates that the global economic conditions are not doing well. Then who are the biggest banks in the world?
1. Industrial and Commercial Bank of China (ICBC) US$ 5.53 trillion
Founded in Beijing in 1984, Industrial and Commercial Bank of China (ICBC) is the world's largest bank by asset value, with more than US$ 5.53 trillion at its last accounting.
It is one of China's "Big Four" state-owned banks that dominate this list. ICBC has a global network with operations in 42 countries and territories.
ICBC claims to have more than 530 million personal banking customers and 5.7 million corporate banking customers.
2. China Construction Bank Corporation (CCBC) US$ 4.76 trillion
Headquartered in Beijing, China Construction Bank Corporation (CCBC) was founded in 1954 and is currently chaired by Wang Hongzhang.
The company has assets of US$ 4.76 trillion and is under the ownership of the Chinese government's Ministry of Finance - although for a short period of time Bank of America held a 10% stake in CCBC.
The bank, which operates in retail banking, corporate banking, investment banking, private equity and wealth management services, has more than 13,600 domestic branches, as well as a number of overseas operations including in Europe, Hong Kong to the US.
3. Agricultural Bank of China (US$ 4.57 trillion)
The Beijing-based Agricultural Bank of China was founded in 1951, after a merger between the two main banks present to help farmers, namely the Cooperation Bank and the Farmers Bank of China.
With total assets of more than US.57 trillion, the bank says it has around 320 million retail customers, 2.7 million corporate clients and 24,000 branches across mainland China. As well as branches in Hong Kong, London, Tokyo, New York, Frankfurt, Sydney, Seoul and Singapore.
4. Bank of China (US$ 4.20 trillion)
The last member of the Chinese banking gang is the Bank of China which was founded in 1912 and is the oldest bank still operating in mainland China having its headquarters in Beijing.
At its inception, the bank was officially licensed to issue banknotes throughout mainland China, but now that privilege can only be exercised in two special administrative regions, Hong Kong and Macau.
Bank of China has assets of more than US.20 trillion and is the Chinese bank with the largest global reach and operations in 51 countries and regions.
Its core business is commercial banking, including corporate banking, personal banking and financial market services.
5. JP Morgan Chase (US$ 3.74 trillion)
The largest bank in the US, JP Morgan Chase in its current iteration was founded in 2000 and is the result of several mergers and acquisitions, including Chase Manhattan Bank, JP Morgan, Bank One, Bear Stearns, and Washington Mutual.
Currently based in New York and led by CEO Jamie Dimon, the bank has over .74 trillion in assets.
The bank is engaged in a variety of financial services under several divisions, including retail banking under the Chase brand and corporate banking under the Morgan brand.
JP Morgan Chase currently employs more than 25,000 people and is present in hundreds of markets.
6. Mitsubishi UFJ Financial Group (MUFG) US$ 3.17 trillion
Headquartered in Tokyo, Mitsubishi UFJ Financial Group (MUFG) is the largest financial services company in Japan which was the result of a merger between Mitsubishi Tokyo Financial Group and UFJ Holdings in 2005. This bank is engaged in retail banking, investment management and retail management.
7. Bank of America (BofA) US$ 3.16 trillion
Bank of America is the second largest financial institution in the US. It is currently based in Charlotte, North Carolina, but was founded in San Francisco in 1904 as the Bank of Italy to serve the area's working-class citizens, especially Italian-American immigrants.
Incorporation in its current form occurred in 1998, following a US billion acquisition by NationsBank, and has a significant footprint in the wealth management and investment sector under the Merrill Lynch brand.
8. HSBC (US$ 2.95 trillion)
London-based multinational bank HSBC is Europe's largest financial institution. The company serves more than 39 million customers through four global businesses, from retail banking and wealth management to commercial banking.
HSBC operates in 66 countries and territories across Europe, Asia, the Middle East and Africa, North America and Latin America. Although now based in England, HSBC has roots in Hong Kong where it was first founded in 1866.
9. BNP Paribas (US$ 2.90 trillion)
BNP Paribas in its current form is the result of the merger of the Banque Nationale de Paris (BNP) and Paribas in 2000.
Based in Paris, BNP employs around 200,000 people in 72 countries, with two main focuses on its business - retail and corporate banking.
The bank serves nearly 32 million individual customers and 850,000 professionals, entrepreneurs, SMEs and large corporate clients through its retail banking network.
10. Crédit Agricole (US$ 2.67 trillion)
Based in Montrouge, France, Crédit Agricole is the second largest bank in the country and the third largest in Europe. Crédit Agricole is also the largest cooperative financial institution in the world.
The company was founded in 1894 as a lender to the agricultural industry, and after undergoing a number of institutional transformations, has today developed into one of the world's giant banks.
Meanwhile, there are no banks from Indonesia in the list of the world's 100 largest banks in terms of assets. However, the Southeast Asia region sent three representatives, namely the big three from Singapore. DBS is the largest (US$ 509 billion), followed by OCBC and UOB.
https://www.cnbcindonesia.com/market/20230330084133-17-425721/10-bank-terbesar-di-dunia-1-4-dikuasai-china-ada-indonesia
01 March 2023
Shophouse and Shophouse Owners Can Now Get Ownership Certificates
JAKARTA, KOMPAS.com - There is good news for shophouse (ruko) and home office (rukan) owners in Indonesia. If previously the ownership status of shophouses and shophouses was Hak Guna Bangunan (HGB), now it can be upgraded to a Certificate of Ownership (SHM). This was conveyed by the Director for Regulation and Determination of Land Rights of the Ministry of ATR/BPN, Husaini in the Socialization of Strategic Programs and Policies in the Sector of Determination of Land Rights and Registration at Grand Mercure Ancol, Jakarta, Monday (27/03/2023). According to him, this has been regulated in the derivative Government Regulation in Lieu of Law (Perpu) Number 2 concerning Job Creation in 2022, namely Ministerial Regulation Number 18 of 2021.
So the shop houses and office houses can also be given ownership rights because we have to pay attention to the community. But please also look at the functionality, if you win productively, please give them their rights," said Husaini. For your information, a shophouse is a property that has 2 or 3 floors and is usually used as a place of business. Meanwhile, a shophouse is intended for office space. Shophouses and shophouses are not only it can be used for personal purposes, but can also be rented out to other people.As quoted from the Kompas.com archive, Tuesday (28/12/2022), shop houses and shop houses are different things from vertical housing such as apartments.
These two types of properties are integrated housing and landed houses. Therefore, the status of land ownership is owned by one person. One of the characteristics of shophouses and shophouses is their location which is located on the edge of the main road and close to various public facilities. Also read: See, This is the Difference between Shophouses, Shophouses and SOHOs The use of shophouses and shophouses is more flexible when compared to apartments. The first floor of a shop or shophouse can be used as a place of business, shop or rented office space. While the next floor as residential.
https://www.kompas.com/properti/read/2023/03/01/104500521/pemilik-ruko-dan-rukan-kini-bisa-kantongi-certifikat-hak-milik
So the shop houses and office houses can also be given ownership rights because we have to pay attention to the community. But please also look at the functionality, if you win productively, please give them their rights," said Husaini. For your information, a shophouse is a property that has 2 or 3 floors and is usually used as a place of business. Meanwhile, a shophouse is intended for office space. Shophouses and shophouses are not only it can be used for personal purposes, but can also be rented out to other people.As quoted from the Kompas.com archive, Tuesday (28/12/2022), shop houses and shop houses are different things from vertical housing such as apartments.
These two types of properties are integrated housing and landed houses. Therefore, the status of land ownership is owned by one person. One of the characteristics of shophouses and shophouses is their location which is located on the edge of the main road and close to various public facilities. Also read: See, This is the Difference between Shophouses, Shophouses and SOHOs The use of shophouses and shophouses is more flexible when compared to apartments. The first floor of a shop or shophouse can be used as a place of business, shop or rented office space. While the next floor as residential.
https://www.kompas.com/properti/read/2023/03/01/104500521/pemilik-ruko-dan-rukan-kini-bisa-kantongi-certifikat-hak-milik
02 February 2023
Where Melbourne's inner-city rental market is heading in 2023
Melbourne has always been a trendy urban playground attracting professionals of all ages for work and play.
In the post-pandemic world, the inner city is roaring back to life, with rentals in significant demand.
With 2023 kicking into full gear, we take a look at the key indicators for the inner-city market and the new offerings reinventing renting.
Rental stress
With covid restrictions pushing Melburnians to the regions at record rates, the inner Melbourne’s vacancy rate increased. However, with people flooding back into the city, the vacancy rate has fallen year-on-year from 4.79% to 2.06%, according PropTrack’s latest Quarterly Rental Report.
Vacancy at these low levels have not been seen in at least the last five years, and are considered an historic low, evidenced by the extended queues seen outside open-for-inspections across inner Melbourne.
This is making renters rethink the way they rent and live, especially given the price points for some one-bedroom apartments. Renters are now reconsidering the type of dwelling, as well as the living arrangement (living with friends instead of going solo) to get more bang for their buck
To continue reading, please click link below.
12 January 2023
Crowds of Crazy Rich World Assault RI's Neighbors, What's Up?
Jakarta, CNBC Indonesia - A number of super-rich families, aka the world's crazy rich, are reportedly busy building houses and offices in Singapore. In fact, the number has increased significantly when compared to a few years ago.
Singapore currently has about 700 offices associated with super-rich families. This number is up from 400 at the end of 2020 and 100 in 2017.
These families come from not only Asia, but also Europe and America. However, demand from Asia looks particularly pronounced, given that private wealth in the region is growing faster than anywhere else in the world.
"The pandemic has prompted many wealthy families to reconsider their wealth management and succession plans to better prepare for the uncertainties ahead," Carrie Ng, Head of Family Office Advisory Bank of Singapore, told Channel News Asia, Thursday (12 /1/2023).
"In addition to Asian family offices, more and more non-Asian families are coming to Singapore to set up satellite offices to capture and support their investments in the region."
This increase was triggered by the Covid-19 pandemic. These circumstances are forcing very high-income individuals and their families to rethink how to protect and grow their wealth for future generations.
Meanwhile, regarding the election of Singapore, analysts believe that the city-state was chosen because of its strength as a world financial center and tropical weather.
Not only that, Singapore has a stable political and regulatory environment, a developed financial services sector and a skilled workforce, and a good standard of living with well-established health and education infrastructure.
"Geography is another reason, with Singapore seen as a gateway to Asia. This is attractive to those looking to get closer to their investments in the region," said private sector analyst at Deloitte, Richard Loi.
https://www.cnbcindonesia.com/news/20230112154547-4-405023/ramai-ramai-crazy-rich-dunia-serbu-tetangga-ri-ada-apa
Singapore currently has about 700 offices associated with super-rich families. This number is up from 400 at the end of 2020 and 100 in 2017.
These families come from not only Asia, but also Europe and America. However, demand from Asia looks particularly pronounced, given that private wealth in the region is growing faster than anywhere else in the world.
"The pandemic has prompted many wealthy families to reconsider their wealth management and succession plans to better prepare for the uncertainties ahead," Carrie Ng, Head of Family Office Advisory Bank of Singapore, told Channel News Asia, Thursday (12 /1/2023).
"In addition to Asian family offices, more and more non-Asian families are coming to Singapore to set up satellite offices to capture and support their investments in the region."
This increase was triggered by the Covid-19 pandemic. These circumstances are forcing very high-income individuals and their families to rethink how to protect and grow their wealth for future generations.
Meanwhile, regarding the election of Singapore, analysts believe that the city-state was chosen because of its strength as a world financial center and tropical weather.
Not only that, Singapore has a stable political and regulatory environment, a developed financial services sector and a skilled workforce, and a good standard of living with well-established health and education infrastructure.
"Geography is another reason, with Singapore seen as a gateway to Asia. This is attractive to those looking to get closer to their investments in the region," said private sector analyst at Deloitte, Richard Loi.
https://www.cnbcindonesia.com/news/20230112154547-4-405023/ramai-ramai-crazy-rich-dunia-serbu-tetangga-ri-ada-apa
09 January 2023
Australia's housing market downturn has smashed a 40-year record. Will home prices continue to fall?
Higher interest rates, household debt and the erosion of savings since the pandemic have been blamed for the steepest plunge in home values since at least 1980.
The Reserve Bank of Australia's aggressive rate-hiking cycle has triggered the housing market's biggest decline in more than four decades.
The 8.4 per cent drop between May 2022 and January 2023 is the deepest peak-to-trough fall on CoreLogic's records, which go back to 1980.
It surpasses the previous record-breaking slide between 2017 and 2019, as well as the downturn prompted by the Global Financial Crisis in 2008.
Sydney home values led this latest nosedive, falling 13 per cent from their highest point.
Brisbane prices plummeted 10 per cent while Melbourne dwelling values tanked 8.6 per cent from peak to trough.
What's driving the drop in home values?
The Reserve Bank's combined 300 basis points in interest rate increases have shrunk the amount buyers can borrow and generally cooled their confidence.
High household indebtedness may have increased the housing market's sensitivity to interest rates, CoreLogic head of research Eliza Owen said.
"Higher inflationary pressures, combined with a post-lockdown surge in spending, has also eroded household savings, which could be utilised for a home loan deposit," she added.
The market may also be enduring a "hangover" from higher sales and activity in 2021 that's left a vacuum in demand.
Will home prices continue to fall?
The market is unlikely to have bottomed out, with further cash rate increases from 3.1 per cent likely to continue driving prices lower in 2023.
Markets are pricing-in a cash rate peak of about 4 per cent, while forecasts by economists average to a more subdued 3.6 per cent.
"Ongoing increases in interest rates will further erode the borrowing capacity, and likely prolong the country's housing downturn until interest rates stabilise," Ms Owen said.
Weakening property prices and high building costs continue to weigh on new building projects, with housing approvals falling 9 per cent in November.
Building approvals, the key indicator of future activity in the construction industry, have sunk by 21.7 per cent since August.
Australian Bureau of Statistics data released on Monday mark the third consecutive month of lower council approvals.
The November decline was led by the more-volatile private attached dwelling segment, which fell 22.7 per cent. Approvals for private sector houses dipped 2.5 per cent.
Total dwelling approvals fell in NSW, Western Australia, South Australia and Queensland but lifted in Tasmania and South Australia.
The value of non-residential building approvals remained robust, however, lifting 2 per cent in November.
31 December 2022
This is the Property Developer with the Biggest Market Cap in Indonesia
JAKARTA, KOMPAS.com - 2023 is just hours away, leaving 2022 full of interesting records and at the same time giving hope that the property sector will show significant recovery. A number of developers are competing to release new projects for various target segments ranging from the luxury class to subsidies.
This is of course, for the sake of showing the public, that this sector which has a dual impact on 174 industries has regained market trust.
However, of the many developers, only five have made convincing performance. These big names continued their domination as was the record in previous years. Who are they?
Kompas.com ranks developers based on market capitalization (market cap).
Market capitalization is an indicator of stock performance related to the fundamentals of a company. One of the important considerations that investors take into account before buying a stock is the size of the market cap. According to Investopedia, market cap is the aggregate market value of a company. The market capitalization calculation is based on the total multiplied by the outstanding number of company shares traded on the stock market.
Usually, the market cap is used by investors to measure the quality of the company. For investors, market cap is a parameter that shows the size of the company. The bigger the market cap, the bigger the value for companies whose shares are traded in the public.
The following are the top five property developers based on market cap as of 30 December 2022:
1. PT Metropolitan Kentjana Tbk (MKPI)
The company recorded a market capitalization of IDR 34.85 trillion. Meanwhile, the revenue is Rp. 1.79 trillion and income is Rp. 642.25 billion.
MKPI has a property business that is supported by recurring and development for the residential and commercial categories. The property sales business includes townhouses and strata title apartments spread across Jakarta, Tangerang and Batam Island.
Its portfolio includes Pondok Indah Mall (PIM 1-3), Pondok Indah Golf Apartment (PIGA), Pondok Indah Office Tower (PIOT), Pondok Indah Office Park (PIOP) and Service Residence Pondok Indah (SRPI).
The company also has a hospitality business through its subsidiary, PT Hotel Pondok Indah, which is operated using the Intercontinental Hotel Group (IHG) network. Its subsidiaries include PT Bumi Shangril La Jaya and PT Pondok Indah Investment.
2. PT Pakuwon Jati Tbk (PWON)
Alexander Tedja gave birth to this company so he was able to score a market cap of IDR 21.77 trillion. Revenue as of 30 December 2022 reached IDR 6.42 trillion with a net income of IDR 1.85 trillion.
PWON operates in five segments namely offices, shopping centers, serviced apartments, housing and hotels. Its portfolio includes nine shopping centers spread across Jakarta, Surabaya, Yogyakarta and Solo; six offices, namely Gandaria 8 Office, Kota Kasablanka Tower A and B, and Pakuwon Tower in Jakarta, as well as Pakuwon Tower and Pakuwon Center in the Tunjungan Plaza superblock, Surabaya.
Then two serviced apartments namely Ascott Waterplace Surabaya and Somerset Berlian Jakarta. Furthermore, the hospitality segment includes Sheraton Surabaya Hotel and Towers, Four Points, Sheraton Grand Jakarta Gandaria City, The Westin Surabaya Hotel and Marriott Hotel Yogyakarta.
There are also strata apartments including two Gandaria Heights towers, four Casa Grande towers and others.
3. PT Bumi Serpong Damai Tbk (BSDE)
The company started by Muktar Widjaya recorded a market cap of IDR 19.69 trillion. Unlike MKPI, BSDE's revenue was recorded at IDR 9.36 trillion with a net income of IDR 1.34 trillion.
To note, BSDE focuses on developing new cities that include integrated residential areas, with infrastructure, environmental facilities, and parks. Among them are BSD City, Kota Wisata, Grand Wisata, Wisata Bukit Mas, Legend Wisata, Kota Deltamas, Balikpapan Baru, Grand City Balikpapan, and Nuvasa Bay.
Reporting from the Financial Times, the Company's property business segments include residential, commercial, asset management, retail and hospitality through a number of subsidiaries. For example, PT Bumi Indah Asri, PT Bumi Karawang Damai, Global Prime Capital Pte. Ltd., PT Kanaka Grahaasri, PT Kanaka Grahaasri, PT Putra Prabukarya, PT Bintaro Serpong Damai, PT Duta Dharma Sinarmas, and PT Duta Karya Propertindo. Then PT Duta Mitra Mas, PT Duta Pertiwi Tbk, PT Mustika Karya Sejati, PT Garwita Sentra Utama, PT Grahadipta Wisesa, Global Prime Capital Pte. Ltd., PT Indonesia International Expo and PT Indonesia International Graha.
4. PT Ciputra Development Tbk (CTRA)
The company, which is now controlled by the second generation, Candra Ciputra, has recorded a market capitalization of Rp. Rp. 17.54 trillion. The revenue reached IDR 10.31 trillion with a net income of IDR 2.25 trillion.
CTRA is engaged in housing as its core business in the development of integrated areas, then recreational areas, industrial areas, offices, hotels, shopping centers, apartments, golf courses, and others.
Its portfolio includes: CitraRaya Cikupa, Ciputra World 1 Jakarta, Ciputra World 2 Jakarta, Ciputra World Surabaya, CitraLand City Surabaya, CitraLand City Losari, and so on.
5. PT Summarecon Agung Tbk (SMRA)
The company started by Sutjipto Nagaria scored a market capitalization of IDR 10.07 trillion. Meanwhile revenue reached IDR 5.99 trillion and net income IDR 462.9 billion. For your information, SMRA's business includes property development, investment property, hospitality, and property management.
Until now, SMRA has developed several integrated townships, including Summarecon Kelapa Gading, Summarecon Serpong, Summarecon Bekasi, Summarecon Bandung, Summarecon Karawang, Summarecon Makassar, Summarecon Bogor, and Summarecon Crown Gading.
https://www.kompas.com/properti/read/2022/12/31/070000621/ini-dia-pengembang-properti-dengan-market-cap-terbesar-di-indonesia?page=all
This is of course, for the sake of showing the public, that this sector which has a dual impact on 174 industries has regained market trust.
However, of the many developers, only five have made convincing performance. These big names continued their domination as was the record in previous years. Who are they?
Kompas.com ranks developers based on market capitalization (market cap).
Market capitalization is an indicator of stock performance related to the fundamentals of a company. One of the important considerations that investors take into account before buying a stock is the size of the market cap. According to Investopedia, market cap is the aggregate market value of a company. The market capitalization calculation is based on the total multiplied by the outstanding number of company shares traded on the stock market.
Usually, the market cap is used by investors to measure the quality of the company. For investors, market cap is a parameter that shows the size of the company. The bigger the market cap, the bigger the value for companies whose shares are traded in the public.
The following are the top five property developers based on market cap as of 30 December 2022:
1. PT Metropolitan Kentjana Tbk (MKPI)
The company recorded a market capitalization of IDR 34.85 trillion. Meanwhile, the revenue is Rp. 1.79 trillion and income is Rp. 642.25 billion.
MKPI has a property business that is supported by recurring and development for the residential and commercial categories. The property sales business includes townhouses and strata title apartments spread across Jakarta, Tangerang and Batam Island.
Its portfolio includes Pondok Indah Mall (PIM 1-3), Pondok Indah Golf Apartment (PIGA), Pondok Indah Office Tower (PIOT), Pondok Indah Office Park (PIOP) and Service Residence Pondok Indah (SRPI).
The company also has a hospitality business through its subsidiary, PT Hotel Pondok Indah, which is operated using the Intercontinental Hotel Group (IHG) network. Its subsidiaries include PT Bumi Shangril La Jaya and PT Pondok Indah Investment.
2. PT Pakuwon Jati Tbk (PWON)
Alexander Tedja gave birth to this company so he was able to score a market cap of IDR 21.77 trillion. Revenue as of 30 December 2022 reached IDR 6.42 trillion with a net income of IDR 1.85 trillion.
PWON operates in five segments namely offices, shopping centers, serviced apartments, housing and hotels. Its portfolio includes nine shopping centers spread across Jakarta, Surabaya, Yogyakarta and Solo; six offices, namely Gandaria 8 Office, Kota Kasablanka Tower A and B, and Pakuwon Tower in Jakarta, as well as Pakuwon Tower and Pakuwon Center in the Tunjungan Plaza superblock, Surabaya.
Then two serviced apartments namely Ascott Waterplace Surabaya and Somerset Berlian Jakarta. Furthermore, the hospitality segment includes Sheraton Surabaya Hotel and Towers, Four Points, Sheraton Grand Jakarta Gandaria City, The Westin Surabaya Hotel and Marriott Hotel Yogyakarta.
There are also strata apartments including two Gandaria Heights towers, four Casa Grande towers and others.
3. PT Bumi Serpong Damai Tbk (BSDE)
The company started by Muktar Widjaya recorded a market cap of IDR 19.69 trillion. Unlike MKPI, BSDE's revenue was recorded at IDR 9.36 trillion with a net income of IDR 1.34 trillion.
To note, BSDE focuses on developing new cities that include integrated residential areas, with infrastructure, environmental facilities, and parks. Among them are BSD City, Kota Wisata, Grand Wisata, Wisata Bukit Mas, Legend Wisata, Kota Deltamas, Balikpapan Baru, Grand City Balikpapan, and Nuvasa Bay.
Reporting from the Financial Times, the Company's property business segments include residential, commercial, asset management, retail and hospitality through a number of subsidiaries. For example, PT Bumi Indah Asri, PT Bumi Karawang Damai, Global Prime Capital Pte. Ltd., PT Kanaka Grahaasri, PT Kanaka Grahaasri, PT Putra Prabukarya, PT Bintaro Serpong Damai, PT Duta Dharma Sinarmas, and PT Duta Karya Propertindo. Then PT Duta Mitra Mas, PT Duta Pertiwi Tbk, PT Mustika Karya Sejati, PT Garwita Sentra Utama, PT Grahadipta Wisesa, Global Prime Capital Pte. Ltd., PT Indonesia International Expo and PT Indonesia International Graha.
4. PT Ciputra Development Tbk (CTRA)
The company, which is now controlled by the second generation, Candra Ciputra, has recorded a market capitalization of Rp. Rp. 17.54 trillion. The revenue reached IDR 10.31 trillion with a net income of IDR 2.25 trillion.
CTRA is engaged in housing as its core business in the development of integrated areas, then recreational areas, industrial areas, offices, hotels, shopping centers, apartments, golf courses, and others.
Its portfolio includes: CitraRaya Cikupa, Ciputra World 1 Jakarta, Ciputra World 2 Jakarta, Ciputra World Surabaya, CitraLand City Surabaya, CitraLand City Losari, and so on.
5. PT Summarecon Agung Tbk (SMRA)
The company started by Sutjipto Nagaria scored a market capitalization of IDR 10.07 trillion. Meanwhile revenue reached IDR 5.99 trillion and net income IDR 462.9 billion. For your information, SMRA's business includes property development, investment property, hospitality, and property management.
Until now, SMRA has developed several integrated townships, including Summarecon Kelapa Gading, Summarecon Serpong, Summarecon Bekasi, Summarecon Bandung, Summarecon Karawang, Summarecon Makassar, Summarecon Bogor, and Summarecon Crown Gading.
https://www.kompas.com/properti/read/2022/12/31/070000621/ini-dia-pengembang-properti-dengan-market-cap-terbesar-di-indonesia?page=all
29 November 2022
2023 The Economy Has Worsen, This Is What Property Entrepreneurs Are Doing
Jakarta, CNBC Indonesia - The global economic situation which is expected to worsen in 2023 has not dampened the confidence of property industry players in the country to remain optimistic in looking at 2023. Through various breakthroughs and new initiatives, developers believe that their business will grow positively next year.
Marketing Director of PT Agung Podomoro Land Tbk Agung Wirajaya expressed his optimism that the property industry will continue to grow positively next year. According to him, the Indonesian economy has good fundamentals and is predicted to continue to grow positively in 2023. Through various new strategies and initiatives, Agung Podomoro has been able to take advantage of the Covid-19 pandemic situation over the past three years with very positive business growth.
"With various post-Covid-19 changes, developers are required to make various breakthroughs so that our property projects are in line with the latest consumer needs. This strategy has been implemented by Agung Podomoro in the last three years and has been successful," Agung explained in an official statement, Tuesday. (29/11/2022).
For example, during a pandemic, Agung Podomoro launched a residence in Podomoro Tenjo City and sold up to 4,500 units. Even the Podomoro City Deli Medan apartment that was built by APL in Medan was sold out in a short time.
"The need for housing is still very large. It has now reached 12.7 million, and it is certain that the number will continue to increase every year. Even if all the developers join forces, it is not certain that they will be able to meet the very large demand for housing," said Agung.
Based on the records of the Central Statistics Agency (BPS), in the third quarter of 2022 the Indonesian economy grew 5.72% on an annual basis. This figure is higher than growth in the second quarter of 2022 which was 5.44% on an annual basis.
Chief Economist of PT Bank Central Asia Tbk (BCA) David E. Sumual said, the government will of course continue to maintain this positive trend of economic growth. In fact, while the economic situation is still wait and see, several investment instruments will actually experience an increase, for example gold and property.
According to David, many banks have also not raised mortgage rates even though Bank Indonesia's benchmark interest rate has increased several times. For this reason, David believes that property investment will remain attractive considering that the trend of rising property prices will continue. Property is also a safe investment instrument.
David saw that the role of the property sector was proven by its contribution to GDP. In the second quarter of 2022 the contribution of the construction sector to GDP reached 9.14%, and 2.47% for real estate. In addition, growth was also shown by the property sector in the second quarter of 2022 with achievements that exceeded pre-pandemic levels of 2.16% (yoy) for real estate and 1.02% (yoy) for construction.
"The Commercial Property Demand Index in the second quarter of 2022 also rose by 1.58% (yoy). This gives confidence that the property sector will continue to grow, moreover banks will continue to maintain mortgage interest rates at a level that consumers can afford," he explained David in the discussion.
The same thing was expressed by the President Director of PT ERA Indonesia Darmadi Darmawangsa. The optimism of business actors in the property sector is marked by the large number of developers who are continuing to launch new projects even though economic conditions have not fully recovered after the pandemic.
"That's because housing is a primary need, so the demand will always be there. There are still lots of people who need housing and it hasn't been met," he said.
In the last 40 years, continued Darmadi, 90% of Indonesia's upper-middle-class people have had their wealth derived from property ownership. "If you don't invest in property, your wealth will surely be eroded by inflation. Because one of the things that can cover inflation is the increase in property prices," he said.
The magnitude of the increase in property prices cannot be measured with certainty. However, based on Darmadi's experience, the increase is always above inflation. "Not only property, the increase in the price of other commodities is also unpredictable. Take a look at the coal price in April 2021 during the pandemic, the price was only US$ 51, but after the pandemic in October 2022 the price has shot up to US$ 351. So now is the best time to invest. on the property," said Darmadi.
Bukit Podomoro Jakarta Chief Marketing Officer Zaldy Wihardja said, APL's confidence in looking to 2023 is proven by continuing to invest and build properties in the East Jakarta area. This was done as a strategy to meet the needs of consumers who want assets with high value growth as well as luxury residential areas that are coveted and awaited by East Jakarta residents.
In East Jakarta, Zaldy said, the increase in land prices was relatively late compared to other areas of Jakarta. But in the last five years the increase has been the highest. Moreover, the DKI Jakarta government plans to make the East Jakarta area a residential area, no longer an industry.
"We are building Podomoro Hills in Jakarta because the potential for growth is still very high. Currently the price of land is still around 20-25 million per meter, half of the price in Central and South Jakarta. But I am sure that in 3-4 years land prices in East Jakarta will skyrocket ," he said. East Jakarta, added Zaldy, is a Sunrise area stored in Jakarta and ready to become the next new gold area.
Zaldy then gave an example of the increase in house prices in Podomoro Hill in the past year which ranged from 10-15%. This increase was already higher than inflation.
"Property will continue to increase. Even if it is stagnant, it will not take long for it to rise again. Apart from that, property has a measurable risk, because the asset has a form, aka it can be lived in," he concluded.
https://www.cnbcindonesia.com/market/20221129060652-17-391952/2023-ekonomi-memburuk-ini-yang-dilakukan-pengusaha-properti
Marketing Director of PT Agung Podomoro Land Tbk Agung Wirajaya expressed his optimism that the property industry will continue to grow positively next year. According to him, the Indonesian economy has good fundamentals and is predicted to continue to grow positively in 2023. Through various new strategies and initiatives, Agung Podomoro has been able to take advantage of the Covid-19 pandemic situation over the past three years with very positive business growth.
"With various post-Covid-19 changes, developers are required to make various breakthroughs so that our property projects are in line with the latest consumer needs. This strategy has been implemented by Agung Podomoro in the last three years and has been successful," Agung explained in an official statement, Tuesday. (29/11/2022).
For example, during a pandemic, Agung Podomoro launched a residence in Podomoro Tenjo City and sold up to 4,500 units. Even the Podomoro City Deli Medan apartment that was built by APL in Medan was sold out in a short time.
"The need for housing is still very large. It has now reached 12.7 million, and it is certain that the number will continue to increase every year. Even if all the developers join forces, it is not certain that they will be able to meet the very large demand for housing," said Agung.
Based on the records of the Central Statistics Agency (BPS), in the third quarter of 2022 the Indonesian economy grew 5.72% on an annual basis. This figure is higher than growth in the second quarter of 2022 which was 5.44% on an annual basis.
Chief Economist of PT Bank Central Asia Tbk (BCA) David E. Sumual said, the government will of course continue to maintain this positive trend of economic growth. In fact, while the economic situation is still wait and see, several investment instruments will actually experience an increase, for example gold and property.
According to David, many banks have also not raised mortgage rates even though Bank Indonesia's benchmark interest rate has increased several times. For this reason, David believes that property investment will remain attractive considering that the trend of rising property prices will continue. Property is also a safe investment instrument.
David saw that the role of the property sector was proven by its contribution to GDP. In the second quarter of 2022 the contribution of the construction sector to GDP reached 9.14%, and 2.47% for real estate. In addition, growth was also shown by the property sector in the second quarter of 2022 with achievements that exceeded pre-pandemic levels of 2.16% (yoy) for real estate and 1.02% (yoy) for construction.
"The Commercial Property Demand Index in the second quarter of 2022 also rose by 1.58% (yoy). This gives confidence that the property sector will continue to grow, moreover banks will continue to maintain mortgage interest rates at a level that consumers can afford," he explained David in the discussion.
The same thing was expressed by the President Director of PT ERA Indonesia Darmadi Darmawangsa. The optimism of business actors in the property sector is marked by the large number of developers who are continuing to launch new projects even though economic conditions have not fully recovered after the pandemic.
"That's because housing is a primary need, so the demand will always be there. There are still lots of people who need housing and it hasn't been met," he said.
In the last 40 years, continued Darmadi, 90% of Indonesia's upper-middle-class people have had their wealth derived from property ownership. "If you don't invest in property, your wealth will surely be eroded by inflation. Because one of the things that can cover inflation is the increase in property prices," he said.
The magnitude of the increase in property prices cannot be measured with certainty. However, based on Darmadi's experience, the increase is always above inflation. "Not only property, the increase in the price of other commodities is also unpredictable. Take a look at the coal price in April 2021 during the pandemic, the price was only US$ 51, but after the pandemic in October 2022 the price has shot up to US$ 351. So now is the best time to invest. on the property," said Darmadi.
Bukit Podomoro Jakarta Chief Marketing Officer Zaldy Wihardja said, APL's confidence in looking to 2023 is proven by continuing to invest and build properties in the East Jakarta area. This was done as a strategy to meet the needs of consumers who want assets with high value growth as well as luxury residential areas that are coveted and awaited by East Jakarta residents.
In East Jakarta, Zaldy said, the increase in land prices was relatively late compared to other areas of Jakarta. But in the last five years the increase has been the highest. Moreover, the DKI Jakarta government plans to make the East Jakarta area a residential area, no longer an industry.
"We are building Podomoro Hills in Jakarta because the potential for growth is still very high. Currently the price of land is still around 20-25 million per meter, half of the price in Central and South Jakarta. But I am sure that in 3-4 years land prices in East Jakarta will skyrocket ," he said. East Jakarta, added Zaldy, is a Sunrise area stored in Jakarta and ready to become the next new gold area.
Zaldy then gave an example of the increase in house prices in Podomoro Hill in the past year which ranged from 10-15%. This increase was already higher than inflation.
"Property will continue to increase. Even if it is stagnant, it will not take long for it to rise again. Apart from that, property has a measurable risk, because the asset has a form, aka it can be lived in," he concluded.
https://www.cnbcindonesia.com/market/20221129060652-17-391952/2023-ekonomi-memburuk-ini-yang-dilakukan-pengusaha-properti
17 November 2022
Australia’s rental crisis hits new low
SQM Research has released rental data for October, with the nation’s vacancy rate plummeting to a new 16-year low of just 1.0%, down from 1.9% a year earlier:
In the 30 days to 16 November 2022, capital city asking rents also rose another 2% with the 12-month rise standing at an unprecedented 24.4%:
Commenting on the result, SQM Research managing director Louis Christopher noted that “the national rental market is still very much in favour of landlords, particularly for our capital cities where there is no evidence yet of any easing in the rental market”. However, Christopher said “there is some good news for tenants in a number of townships and regions outside the capital cities whereby SQM Research is now recording a consistent rise in rental vacancy rates, albeit from a very low base”.
Christopher believes this easing in regional rental vacancies “might be attributed to a population flow back into the cities whereby an increasing number of white-collar workers are being asked to come back into the office”. If true, “this means the capital city rental market will continue to be under great strain for tenants over the foreseeable future and may not ease until late 2023 at the earliest”.
Australia’s rental crisis is destined to get worse given net temporary student and work visa arrivals have risen to record levels:
The impact will be worst in the major cities of Sydney and Melbourne, which are the key landing points for migrants.
https://www.macrobusiness.com.au/2022/11/australias-rental-crisis-hits-new-low/
04 November 2022
The Fed et al give a signal to relax, afraid of a severe recession?
Jakarta, CNBC Indonesia - The United States (US) central bank, known as the Federal Reserve (The Fed) announced another interest rate hike on Thursday (11/3/2022). The world's most powerful central bank raised interest rates by 75 basis points to 3.75% - 4%, in line with market expectations.
However, there are few signs that interest rate hikes may not be aggressive in the future.
The Fed stated that in determining future interest rate hikes, it will take into account how much interest rate increases have already been made, their effect on economic activity and inflation, as well as developments in economic and financial conditions.
This means that in the future if inflation starts to slow down, the Fed is likely to reduce its aggressiveness. But for the economy, Fed chairman Jerome Powell and colleagues will likely see how severe the downturn will be.
A quick way to reduce inflation is to bring the economy into a recession. During a recession, demand pull inflation will certainly decrease because people will reduce their spending.
This is what central banks in the world are currently doing, very aggressively raising interest rates, despite the recession at stake. Economic contraction will be better than prolonged high inflation.
When a recession occurs and inflation finally declines, monetary policy can be relaxed slowly to spur the economy back on. This will be easier to do than to deal with "ingrained" inflation.
However, there are indications that some central banks do not want to experience a deep recession due to high interest rates.
Canada's central bank (Bank of Canada / BoC) has clearly stated this.
The Fed and the BoC are the two most aggressive central banks in raising interest rates, judging by the size of the percentage increase.
To date, the BoC has recorded 6 increases, even last July by 100 basis points and September 75 basis points.
The last increase was made last Wednesday (11/26/2022) by 50 basis points. Interestingly, the BoC raised interest rates below market expectations by 75 basis points.
The BoC even said that the period of rising interest rates would soon end, because the economy is expected to stagnate in the next 3 quarters.
"The period of monetary tightening is almost over. We are close, but not there yet," BoC Governor Tiff Macklem told a news conference.
Maccklem said how high interest rates will depend on the impact given, how much monetary policy is able to reduce demand, how supply problems are resolved and inflation and inflation expectations respond to the policy.
"We expect interest rates to be raised again. That means it could be bigger than a normal increase, or it could be a normal 25 basis point increase," said Maccklem.
Prior to the BoC, Australia's central bank (Reserve Bank of Australia/RBA) had already surprised the market by raising interest rates 25 basis points last October, whereas previously it was expected to raise 50 basis points.
One of the things the RBA sees is an increase in lending rates that will weigh on Australians. In fact, many residents are expected to sell their houses due to the sharp increase in mortgage interest rates.
Based on data from RateCity, as quoted by the Guardian, every 100 basis point increase in interest rates will add AU0 to mortgage payments with a 25-year tenor.
The RBA started raising interest rates since last May, until October it was recorded at 250 basis points. Based on RateCity's records, mortgage payments with a ceiling of AU0,000 experienced an increase of AU7.
This month, the RBA again raised interest rates by 25 basis points to 2.85%, as did the British central bank (Bank of England / BoE). BaoE also gave a signal that it will relax its interest rate hike.
https://www.cnbcindonesia.com/market/20221104073055-17-385081/the-fed-dkk-beri-sinyal-mengendur-takut-resesi-parah
However, there are few signs that interest rate hikes may not be aggressive in the future.
The Fed stated that in determining future interest rate hikes, it will take into account how much interest rate increases have already been made, their effect on economic activity and inflation, as well as developments in economic and financial conditions.
This means that in the future if inflation starts to slow down, the Fed is likely to reduce its aggressiveness. But for the economy, Fed chairman Jerome Powell and colleagues will likely see how severe the downturn will be.
A quick way to reduce inflation is to bring the economy into a recession. During a recession, demand pull inflation will certainly decrease because people will reduce their spending.
This is what central banks in the world are currently doing, very aggressively raising interest rates, despite the recession at stake. Economic contraction will be better than prolonged high inflation.
When a recession occurs and inflation finally declines, monetary policy can be relaxed slowly to spur the economy back on. This will be easier to do than to deal with "ingrained" inflation.
However, there are indications that some central banks do not want to experience a deep recession due to high interest rates.
Canada's central bank (Bank of Canada / BoC) has clearly stated this.
The Fed and the BoC are the two most aggressive central banks in raising interest rates, judging by the size of the percentage increase.
To date, the BoC has recorded 6 increases, even last July by 100 basis points and September 75 basis points.
The last increase was made last Wednesday (11/26/2022) by 50 basis points. Interestingly, the BoC raised interest rates below market expectations by 75 basis points.
The BoC even said that the period of rising interest rates would soon end, because the economy is expected to stagnate in the next 3 quarters.
"The period of monetary tightening is almost over. We are close, but not there yet," BoC Governor Tiff Macklem told a news conference.
Maccklem said how high interest rates will depend on the impact given, how much monetary policy is able to reduce demand, how supply problems are resolved and inflation and inflation expectations respond to the policy.
"We expect interest rates to be raised again. That means it could be bigger than a normal increase, or it could be a normal 25 basis point increase," said Maccklem.
Prior to the BoC, Australia's central bank (Reserve Bank of Australia/RBA) had already surprised the market by raising interest rates 25 basis points last October, whereas previously it was expected to raise 50 basis points.
One of the things the RBA sees is an increase in lending rates that will weigh on Australians. In fact, many residents are expected to sell their houses due to the sharp increase in mortgage interest rates.
Based on data from RateCity, as quoted by the Guardian, every 100 basis point increase in interest rates will add AU0 to mortgage payments with a 25-year tenor.
The RBA started raising interest rates since last May, until October it was recorded at 250 basis points. Based on RateCity's records, mortgage payments with a ceiling of AU0,000 experienced an increase of AU7.
This month, the RBA again raised interest rates by 25 basis points to 2.85%, as did the British central bank (Bank of England / BoE). BaoE also gave a signal that it will relax its interest rate hike.
https://www.cnbcindonesia.com/market/20221104073055-17-385081/the-fed-dkk-beri-sinyal-mengendur-takut-resesi-parah