Challenges and Opportunities for the Property Sector Amid Trump's Tariff Policy
KOMPAS.com - The import tariff policy imposed by United States (US) President Donald Trump for Indonesia will indirectly affect the property sector.
According to Knight Frank Indonesia, this is because the Indonesian property market is currently dominated by the domestic market, while foreign investment flows in the property sector are dominated by Asian countries.
However, the property sector needs to remain vigilant, this is because the property sector is quite sensitive to fluctuations in interest rates, inflation, and economic growth.
In addition, the property sector in the high-end segment is predicted to be quite affected because some of its construction materials come from imports. However, this is actually an opportunity to find replacement construction materials from the local industry.
Country Head of Knight Frank Indonesia, Willson Kalip said that business relocation to Indonesia is expected to increase gradually in 2025-2026, supported by government steps to increase investment competitiveness and the readiness of new industrial areas.
Meanwhile, the Indonesian property sector is generally estimated to be relatively safe from the direct impact of Trump's tariffs, although the domino effect of the policy is expected to affect the property market for a certain period of time until the market finds a new equilibrium point.
"Amid the current market instability, careful monitoring of the situation and readiness to mitigate the turmoil in the next few months are crucial," said Wilson Kalip in a press release, Wednesday (4/30/2025).
The government needs to be aware of the challenges faced, while preparing instruments to realize the opportunities that are open.
The investment climate and business licensing need to be considered, so that they do not become obstacles in efforts to accelerate industrial relocation. Here are some of the challenges and opportunities that the property sector is expected to face from Trump's tariff policy:
To continue reading, please visit the link below:
https://www.kompas.com/properti/read/2025/05/01/050000321/tantangan-dan-peluang-sektor-properti-di-tengah-kebijakan-tarif-trump?page=all#page2
According to Knight Frank Indonesia, this is because the Indonesian property market is currently dominated by the domestic market, while foreign investment flows in the property sector are dominated by Asian countries.
However, the property sector needs to remain vigilant, this is because the property sector is quite sensitive to fluctuations in interest rates, inflation, and economic growth.
In addition, the property sector in the high-end segment is predicted to be quite affected because some of its construction materials come from imports. However, this is actually an opportunity to find replacement construction materials from the local industry.
Country Head of Knight Frank Indonesia, Willson Kalip said that business relocation to Indonesia is expected to increase gradually in 2025-2026, supported by government steps to increase investment competitiveness and the readiness of new industrial areas.
Meanwhile, the Indonesian property sector is generally estimated to be relatively safe from the direct impact of Trump's tariffs, although the domino effect of the policy is expected to affect the property market for a certain period of time until the market finds a new equilibrium point.
"Amid the current market instability, careful monitoring of the situation and readiness to mitigate the turmoil in the next few months are crucial," said Wilson Kalip in a press release, Wednesday (4/30/2025).
The government needs to be aware of the challenges faced, while preparing instruments to realize the opportunities that are open.
The investment climate and business licensing need to be considered, so that they do not become obstacles in efforts to accelerate industrial relocation. Here are some of the challenges and opportunities that the property sector is expected to face from Trump's tariff policy:
To continue reading, please visit the link below:
https://www.kompas.com/properti/read/2025/05/01/050000321/tantangan-dan-peluang-sektor-properti-di-tengah-kebijakan-tarif-trump?page=all#page2
Latest News
