Omnibus law can breath fresh air for property issuers

ILLUSTRATION. The prospect of property sector stocks is believed to be moving positively amidst the high challenges of the 2020 pandemic.

Reporter: Intan Nirmala Sari | Editor: Wahyu T. Rahmawati

KONTAN.CO.ID – JAKARTA. The prospect of property sector stocks is believed to be moving positively amidst the high challenges of the 2020 pandemic. One of the supporting sentiments comes from the ratification of the omnibus law.

Ciptadana analyst Yasmin Soulisa thinks that the omnibus law is believed to improve demand in the country’s estate industry. Including, if space for expatriates or foreign workers begins to enter Indonesia. “If foreigners enter, it’s possible SSIA and BEST the most benefited, “said Yasmin to Kontan.co.id, Sunday (11/10).

However, if it is linked to the easing of permits for apartment ownership rights for foreign workers, the impact will be positive for foreign workers DILD and PWON. This is because ownership is allowed for middle to upper class apartments.

Meanwhile, Binaartha Sekuritas analyst Muhammad Nafan Aji said that the overall impact of the omnibus law will provide positive benefits to the property sector in particular. “The relaxation of foreign ownership of property has the opportunity to benefit high-rise property developers in Jakarta,” Nafan told Kontan.co.id, Sunday (11/10).

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In addition, shopping center operators such as malls will also be able to get more profits, one of which is the tax relaxation designed by the government. In addition, labor reform is also considered to be beneficial for the property development industry as a whole.

“Enhancement foreign direct investment (FDI) will result in a higher demand for construction activity. Expats on average are more likely to be favorites high rise building, “said Nafan.

Nafan added that the Tapera program in January 2020 also provided positive benefits to the development of the property sector. It also has a positive impact on credit growth.

In addition, Yasmin added that the impact of the pandemic has dragged down real estate finances in the first half of 2020. Property developers mostly reported below-expected financial performance in the first six months of this year.

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