Business Review Indonesia MARKET OUTLOOK The Greater Jakarta region, known locally as Jabodetabek, encompasses Jakarta, Bogor, Depok, Tangerang, and Bekasi. With a population of over 30 million people1, it is Indonesia’s most densely populated metropolitan area. The bustling metropolis, contributing to 16.8%2 of Indonesia’s GDP, has played a vital role in the robust growth of the nation’s economic landscape in 2023, marked by a YoY increase of 1.2%3. Recognised as an economic powerhouse and a cornerstone of the Special Capital Region of Jakarta, Jabodetabek consistently attracts prioritised government investments, exemplified by initiatives such as the National Development Plan4, aimed at enhancing regional infrastructure and fostering economic growth. The recently inaugurated Phase 1 Light Rail Transit5 has significantly enhanced connectivity and accessibility in the area, further augmenting the allure of decentralised living within Jabodetabek. The government’s recent Value Added Tax (“VAT”) exemption for residential properties under IDR5 billion6 is expected to stimulate the housing market, making it more affordable for people to buy homes. As a result, it is anticipated that sales will increase, and the Company’s share of the residential sector will expand. MARKET REVIEW The Sanctuary Collection is a large-scale landed residential development with two Phases. Under Phase 1, the first two clusters, namely Tanglin Parc and Newton Springs, were well-received by home buyers. For Tanglin Parc, which was fully sold, about 85% of the units have been handed over to homeowners. Newton Springs, which is almost fully sold, commenced handover of units to homeowners in September 2023. As a continued testament to the sterling reputation of The Sanctuary Collection, the third upcoming cluster under Phase 1, Orchard Riviera, clinched the prestigious Asia Property Awards 2023 in four categories, namely, Best Eco-Friendly Housing Development; Best Housing Architectural Design; Best Housing Interior Design; and Best Housing Landscape Architectural Design, ahead of its launch. STRATEGIC PRIORITIES In the post-pandemic landscape, Perennial Holdings’ strategically located residential development has experienced heightened appeal, leveraging positive shifts in a post-pandemic landscape with greater consumer confidence towards the real estate market. As consumer preferences evolve to prioritise wellventilated and secure living arrangements without compromising accessibility, Perennial Holdings continues to align its offerings with the demand for such quality residential environments. With the encouraging sales of Tanglin Parc and Newton Springs and a strong brand reputation achieved for the entire development, Perennial Holdings intends to launch the highly anticipated third cluster, Orchard Riveria, in FY2024. Perennial Holdings views Indonesia with great confidence in its market potential with the fast-growing real estate market size, its government’s resolve for national development and the rising disposable incomes of Indonesians. Hence, the Company aims to continue accumulating land for future developments, with ongoing planning efforts to refine Phase 2. This includes designing master infrastructure and residential cluster layouts, with plans to publicly unveil the Phase 2 masterplan in 2024. Additionally, in alignment with efforts to promote sustainability, Perennial Holdings is also exploring obtaining green certifications from the Green Building Council Indonesia for Orchard Riviera and the subsequent residential clusters for The Sanctuary Collection. Indonesia’s economic outlook illuminates a promising path of growth and provides a conducive environment for capital markets and investment activities, with potential for further expansion as well as the refinancing of existing loans. Perennial Holdings will continue to explore investment opportunities to broaden the Company’s footprint in the country. 1 World Population Review. 2 Indonesia Central Bureau of Statistics article A, dated 2024. 3 Indonesia Central Bureau of Statistics article B, dated 2024. 4 Japan International Cooperation Agency article, dated 2023. 5 CNBC article, dated 2 October 2023. 6 Jakarta Globe article, dated 24 October 2023. 76 PERENNIAL HOLDINGS PRIVATE LIMITED
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