Overall, we do not see much improvement in the demand side and supply side, given the height of the political tension and market’s focus on religious festivities and school holidays. Up to now, developers opt to focus on selling unsold stocks rather than launching new projects. In H1 2019, during the fasting month and Eid al-Fitr, people decided to spend more on travel and consumer goods.
On the compelling side, the elected incumbent for the next five years should reduce uncertainties and ensure the continuity of key economic policies. This would trigger foreign inflows to Indonesia. We recommend investors to start looking for prospective apartment projects primarily during this period of buyers’ market situation.