KPMG business talk: Property sector as the country’s growth engine

KPMG Siddharta Advisory hosted an exclusive breakfast session titled "KPMG business talk: Property sector as the country's growth engine" at The KPMG Clubhouse at Menara Astra, Jakarta on 17 July 2024. This event brought together the Indonesian Chamber of Commerce (KADIN) - Integrated Property Development (IPD), industry leaders, and key stakeholders from a broad spectrum of expertise and interests in this vital sector. The speakers discussed and explored the pivotal role that this sector plays in our nation’s economy, new trends in the industry, such as property technology and innovation, as well as ESG and green financing.

The property sector is not just about building homes, apartments and offices; it is about creating communities, fostering economic development, and enhancing the quality of life for our citizens. Having the right data management strategy for the property sector is important.

Irwan Djaja, the CEO of KPMG Siddharta Advisory (KSA), opened the session by warmly welcoming all participants and spoke about the importance of having the right data management strategy for the property sector. We were also honored to have Mr. Budiarsa Sastrawinata, the Head of the Board for Integrated Property Development of the Indonesia Chamber of Commerce and Industry (KADIN), at the event to deliver the keynote speech and Ms. Theresia Rustandi, Secretary of the Board for Integrated Property Development at KADIN, to moderate a panel discussion on the topic "The roles and contributions of the property sector for the country's economic growth and transformation: Indonesia and the lessons learned from other countries". The panel members consisted of Dr. Deven Chhaya (Partner, Infratech at KPMG in Singapore and Decarbonization Hub Lead for KPMG ASPAC), Lo Mun Wai (Audit Partner and Head of the Property and Real Estate sector of KPMG in Singapore) and Michael Horn (Head of ESG Advisory and Head of Turnaround & Restructuring for KSA).

Lo Mun Wai closed the session and shared the following key takeaways from the event:

• Data is important in commercial real estate. A good strategy across departments improves decision-making, tenant experience, and innovation.  Focus is shifting from internal operations to data-driven services for tenants and investors. Building a data-driven culture requires ongoing effort, not just technology, for success.
• The real estate sector contributes significantly to the GDP of the nation and therefore policies that help the sector are also good for the Indonesian economy. This sector stimulates investment, generates employment and serves as one of the barometers of economic health.
• Public housing and urban development are equally important; rapid urbanization along with chronic housing deficits are opportunities for the public and private sectors to work together.
• All stakeholders in this sector, including financiers, and regulators, need to keep pace with evolving net-zero goals and technological innovation.