World Economy

Indonesian Building Boom

Indonesian Building BoomIndonesian Building Boom

Falling interest rates, an expanding population and a government-sponsored building boom are turning Indonesia into the world’s favorite place to buy property stocks, Bloomberg reported. Developers on the Jakarta stock exchange, including PT Lippo Cikarang and PT Alam Sutera Realty, have the highest average analyst ratings among global peers and the most buy recommendations of any industry group in Indonesia, according to data compiled by Bloomberg. The Jakarta Construction, Property & Real Estate Index has advanced 26% over the past 12 months, twice as much as the nation’s benchmark index. “We are overweight on the property sector and continue to be positive,” said Arief Wana, a director at PT Ashmore Asset Management Indonesia in Jakarta.