TOD-Based Residential Closer To LRT Station Will Be Crowded By Consumers In Jabodetabek

JAKARTA - Head of Advisory Services of Colliers International Indonesia Monica Koesnovagril assesses that Transit Oriented Development (TOD)-based housing has the potential to attract consumers in big cities such as Jakarta and its buffer areas of Bogor, Depok, Tangerang and Bekasi.

Monica said that currently the government is actively supporting residential ownership projects through the provision of a number of incentives and funding facilities, including for TOD-based residential projects resulting from the synergy of various State-Owned Enterprises (BUMN). A number of these incentives are expected to increase the level of affordability of TOD-based housing by consumers.

According to him, if implemented properly, TOD will become an ideal residential concept for the community. TOD is an integrated residence with public transportation facilities in the middle or close to the city center so that it can help people reduce travel time which is usually a problem.

"Travel is getting closer, especially if for example the TOD is the LRT," Monica said as quoted by Antara, Monday, August 23.

Recently, the government extended the period of granting value added tax incentives (VAT) borne by the state for the delivery of landed houses or flats for commercial houses at prices below IDR 2 billion per unit in the primary market.

As of last March, Bank Indonesia also relaxed the Loan to Value (LTV) ratio to encourage the property sector to emerge from the pandemic. Apart from that, financial institutions also provide a number of waivers.

Samuel Sekuritas analyst Olivia Laura added that the existence of incentives was the driving force behind property sales this year. This is reflected in the sales of all property issuers which reached more than 50 percent in the first semester of 2021.

"Growth is high because the base in 2020 is low. When compared to before the pandemic in 2019, growth in the first semester of 2021 is also quite significant for several issuers," said OIivia.

Various government incentives have proven to be able to boost the performance of the property sector in Indonesia. The results of the Bank Indonesia Primary Market Residential Property Price Survey (SHPR) indicate that the residential property price index, a measure of property sales, continues to rise.

In the second quarter of 2021, the property price index was recorded at 215.77 and is expected to increase to 215.88 in the third quarter of 2021. This figure is higher than in 2020 which was only in the range of 211-213.

Separately, President Director of PT Adhi Commuter Properti (ADCP) Rizkan Firman said his company is intensively developing TOD-based properties. The first and largest mass transportation-based property developer in Indonesia has a strong portfolio of existing and new TOD projects located at 7 of 17 Phase I LRT stations in Jakarta, Bogor, Depok, Tangerang and Bekasi (Jabodetabek).

The entire area has a total of more than 54 thousand units, with a landbank of 140 hectares, namely LRT City Bekasi - Eastern Green, LRT City Bekasi - Green Avenue, LRT City Jatibening, LRT City MTH, LRT City Tebet, LRT City Ciracas, LRT City Cibubur, LRT City Sentul, Adhi City Sentul, as well as Member of LRT City - Grand Central Bogor, Member of LRT City - Cisauk Point, Member of LRT City - Oase Park.

Currently, various TOD ADCP property projects are well positioned for the community to benefit from the commercial operation of the LRT line in June 2022 (Cibubur - Cawang, Cawang - Dukuh Atas, Cawang - East Bekasi).

"Other ADCP developments are also located at the main point of the Commuter Line and Bus Rapid Transport (BRT) systems where the two transportation systems are actively operating," said Rizkan.

He hopes that the existence of housing close to public transportation access will help people reduce mobility costs, relieve congestion in the Jabodetabek area, as well as reduce air pollution levels. Thus, the socio-economic conditions of the community will also improve and various government programs to solve transportation problems will be effective.