MARKET OUTLOOK The Jabodetabek region, encompassing Jakarta and its surrounding cities and regencies, including Bogor, Depok, Tangerang and Bekasi, remains Indonesia’s most significant urban agglomeration. This region is pivotal to Indonesia’s economy, contributing approximately 25% of the country’s GDP1 and serving as a hub for finance, manufacturing and commerce. Jabodetabek's appeal is multifaceted, anchored in its robust infrastructure and skilled workforce. The region has seen significant expansions in its transportation networks, such as a comprehensive commuter rail system that serves 1.2 million passengers daily2 and the Jakarta MRT, drastically reducing travel times across municipalities. In recent years, the Indonesian government has been addressing housing needs with incentives, including exempting valueadded tax (“VAT”) on house purchases and bolstering the property sector, which has been key to the national economy3. These incentives will benefit property developments in Jabodetabek, which has a population of more than 30 million people4. There has also been a noticeable shift towards decentralisation within Jabodetabek, with an increasing preference for suburban areas like Bogor Regency. This trend is driven by a desire for more spacious and well-ventilated housing as well as the development of comprehensive infrastructure networks that ease commuting times5. The suburban lifestyle offering higher quality living amid lush greenery enhances the appeal of regions like Bogor Regency for residential development. Perennial Holdings’ luxurious landed residential development in Bogor Regency (“The Sanctuary Collection”) is poised to flourish amid these favourable trends. The region’s strong infrastructure, combined with government incentives and the increasing appeal of suburban living, provides an ideal setting for our project. By offering high-quality, well-designed luxury homes, the development will meet the rising demand for premium housing in this rapidly evolving area, securing the foundation for sustained growth. MARKET REVIEW The Sanctuary Collection, comprising two phases and four clusters within Phase 1, has made significant strides. The first cluster, Tanglin Parc, was a resounding success, with all residences sold to discerning owners, and the majority have now been handed over to the homeowners. Tanglin Parc had set a new benchmark for luxury living in the region, serving as a testament to the robust demand for high-end residential offerings. Building on this momentum, the second cluster, Newton Springs, is progressing towards full occupancy, with over half of its residences already handed over to homeowners. Continuing the tradition of excellence, Newton Springs offers an elegant and tranquil living environment, reinforcing the development’s reputation for quality and sophistication. The third and most expansive cluster within Phase 1, Orchard Riviera, was launched in 2024, with construction commencing in the same year. Distinguished by its striking double-volume ceilings and generous interiors, Orchard Riviera provides a refined sanctuary from the vibrancy of city life. Each residence is meticulously designed with premium finishes and intuitive layouts, ensuring an unparalleled living experience. The sustained success of all three clusters underscores The Sanctuary Collection’s standing as luxury residences, reinforcing investor confidence in the brand’s long-term vision and execution. STRATEGIC PRIORITIES Indonesia’s economy is expected to remain resilient despite challenges arising from geopolitical tensions and global market fluctuations. The country’s economic forecast for 2025 is promising, with projected GDP growth ranging between 4.8% and 5.6%6. As Southeast Asia’s largest economy, Indonesia’s resilience amid global economic challenges underscores its strategic importance to Perennial Holdings. The Company is committed to delivering exceptional homes to meet burgeoning demands for premium residential developments. Perennial will continually enhance its offerings and maintain the highest standards of quality and design. Looking ahead to 2025, Perennial Holdings will continue to advance the planning for the subsequent cluster in the first phase of The Sanctuary Collection. Additionally, the Company will refine the master planning for the second phase, which will feature higher-end products. Strategic priorities will also include the acquisition and amalgamation of land for future expansion, ensuring that Perennial Holdings remains at the forefront of luxury residential development in the Bogor Regency. 1 DKI Jakarta Province in Figures, Volume 54, (2024) (https://jakarta.bps.go.id/id/publication/2024/05/30/7fd89241dcba2816c5b38a80/provinsi-dki-jakartadalam-infografis-2024.html) 2 International Journal, (Emma, et. Al., 2014) (https://www.j-sustain.com/files/pub/file/2016/Vol%204%20No%201/J-SustaiN_Vol4_No1_27-34%20BE-01411143_Con14.pdf) 3 Jakarta Globe, (Aug 2024) (https://jakartaglobe.id/business/govt-extends-vat-waiver-on-house-purchases-until-end-of-year) 4 World Population Review (https://worldpopulationreview.com/cities/indonesia/jakarta) 5 Cambridge University Press, (Firman, Oct 2015) (https://www.cambridge.org/core/books/abs/regional-dynamics-in-a-decentralized-indonesia/dynamics-ofjabodetabek-development-the-challenge-of-urban-governance/11BDE4CC2FB2BB7ABCB368CFD4BDB8D2) 6 Kristianus, Nov 2024 (https://jakartaglobe.id/business/bank-indonesia-forecasts-gdp-growth-of-4856-in-2025-amid-global-economic-challenges) 78 PERENNIAL HOLDINGS PRIVATE LIMITED Real Estate Business Review Indonesia
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