REI DKI Prepares 25 Property Developers for IPO, Targeting Rp5 Trillion in Funds

JAKARTA - The DKI Jakarta Regional Board of Directors (DPD) of Realestate Indonesia (REI) is preparing 25 REI member developers to be able to immediately carry out the initial public offering or Initial Public Offering (IPO) until 2028.

Chairman of the DKI Jakarta REI DPD Arvin F. Iskandar said that the plan was formulated to thicken the position of the developer's capital to support the supply of housing and to succeed the 3 million house program.

This was conveyed by Arvin when he was met by reporters at the Go Public Workshop entitled 'Solutions for Accelerating Non-bank Funding through the Capital Market' at the Indonesia Stock Exchange (IDX) office, Jakarta, Monday, February 23.

"So, we are doing this workshop to support REI DKI members. Of course, the top 20, top 30 developers are already public members of REI DKI. It's just that there are still many of our friends who are medium-sized developers," said Arvin.

Arvin assessed that mid-scale developers still face obstacles to financial statement transparency and doubts about entering the capital market. In fact, access to funding through the exchange is considered important in the midst of banks' cautious attitude towards the property sector after the COVID-19 pandemic.

"We know that conventional banks are currently against property, right, they are said to be red, not yellow. So, how in 2026 with the program of President Prabowo to support 3 million houses, developers can achieve the program, namely not using banking funds, but through the capital market," he said.

He said that the developer's capital sources are currently still dominated by internal financing and bank loans, with a general scheme of 30 percent coming from its own funds and 70 percent from the banking sector.

"First, from self-financing operations. Second, usually banks ask for 30 percent self-financing, 70 percent can be financed by banks," he said.

For this reason, Arvin assessed that middle-class developers need to get the same funding opportunities as large companies that have listed on the exchange.

"That's what we're aiming for so that these medium-sized friends can get the same rights in 2026, not just big developers," he explained.

Furthermore, Arvin explained, REI DKI's main strategy is to encourage developers to conduct initial public offerings (IPO) to increase financial reporting transparency and open themselves up to equity funding.

"First, be more transparent about financial reports. Second, don't worry if this medium size is to get funding in equity," he said.

In addition to equity financing, said Arvin, his party also encourages the use of debt instruments such as bonds as a source of long-term financing.

Along with this, REI DKI targets that around 5-10 percent of new developers will process funding in the capital market in the period 2026 to 2028.

"The minimum 5 percent is around 25 developers. We hope that these 25 medium-sized developers (members of REI DKI) can work together to run or get funds on the capital market," explained Arvin.

He estimated that one medium-sized developer company has the potential to raise Rp100-Rp200 billion. With this assumption, the total potential funding for the property sector to list on the exchange will be around Rp5 trillion.

"One company Rp200 billion times 25, how much is it, right? (Total about) Rp5 trillion. So, we target for that property at least Rp5 trillion," said Arvin.

Through this workshop, REI DKI hopes that the capital market can become an alternative long-term financing for developers while supporting the growth of the national property industry which involves no less than 180 derivative industrial sectors, ranging from furniture to building materials.

"That is our target to conduct this workshop in early 2026," he concluded.