Property Sector to Drive Indonesia's Economic Growth in 2026

Government Targets 8% Growth by 2029

The Indonesian government has set an ambitious target of achieving 8% economic growth by 2029, with investment serving as the primary driver of this growth. As of Q3 2025, investment realization has reached Rp1,434.3 trillion, representing 75.3% of the annual target. The property sector is playing a significant role in this growth, with investments in housing and industrial estates amounting to Rp105.2 trillion.

Regulatory Reforms Enhancing Investment Climate

To strengthen the investment climate, the government has been implementing various regulatory reforms. The Omnibus Law (Law No. 6/2023) and Government Regulation No. 28/2025 on Risk-Based Licensing have been key in improving the ease of doing business. Additionally, the Online Single Submission (OSS) system has been enhanced with the implementation of positive fictitious licensing and Service Level Agreements (SLAs).

Economic Impact of Property Investments

The property sector is not only meeting basic needs but also creating employment opportunities and stimulating supply chains. According to Ricky Kusmayadi, Special Staff to the Minister of Investment/BKPM, the sector's multiplier effect is significant. The government's focus on improving legal certainty and streamlining licensing processes is expected to further boost investment growth in the sector.