Indonesia plans to offer to international investors opportunities to build 75 gigawatts (GW) of renewable power in the country in the next 15 years, its climate envoy said on the sidelines of
the COP29 summit.

The plan is a commitment by Prabowo Subianto, who took office last month as the president of Indonesia, said Hashim Djojohadikusumo, Prabowo’s brother and Indonesia’s envoy to the 2024 United Nations Climate Change Conference in Baku, Azerbaijan.

Indonesia, one the world’s biggest greenhouse gas emitters, has pledged to reach carbon neutrality by 2060, including by phasing out coal-fired power plants and replacing them with renewables.

“There will be 100 GW of new energy that will be implemented in the new administration in the next 15 years, of which 75%, or 75 GW will be renewable energy,” Hashim said in a livestreamed speech on Monday in Baku.

The renewable projects would include solar, hydro, geothermal and nuclear power, Hashim said, without explaining plans for the
remaining 25 GW.

Indonesia’s current installed power capacity is more than 90 GW, with more than half of that powered by coal and less than 15% by renewables. It currently has no nuclear capacity, a controversial topic in a country prone to earthquakes.

Indonesia’s state-power utility Perusahaan Listrik Negara is designing a new green transmission line spanning 70,000 km (43,500 miles), its chief executive Darmawan Prasodjo said from Baku, according to a company statement.

Source: Reuters

This has come about as Asia-Pacific markets, including Singapore, saw a faster return to office compared to Europe and US, amid tight supply and new project delays.

However, the positive rent growth has paused since Q2 2024, with prime rents remaining flat for two consecutive quarters.

The latest URA data has also shown that the office rental index (Central Region) registered a 0.5 per cent quarter-on-quarter decline, and median rents of Category 1, a proxy for the best office spaces in the city centre (based on contracts signed), declined by 0.8 per cent quarter on quarter in Q3 2024.

The slowdown can be attributed to the vacancy spike to 7.8 per cent, following the completion of IOI Central Boulevard Towers, which added 1.2 million square feet of office space in the last few months.

The high vacancy has shone a spotlight on the noticeable lack of large demand drivers since late 2022. The expansions and new set-ups from tech firms, which previously occupied large chunks of space in excess of 30,000 square feet, have dried up.

Source: The Business Times

A key trend set to drive Cambodia’s residential property sector in coming years is a large increase in domestic demand for affordable housing, especially in urban centers such as Phnom Penh, said a new report by Knight Frank, the London-headquartered global real estate consultancy.

Alongside this outlook, the firm said that foreign investment into the Cambodian real estate market continued to be a key factor behind overall growth as of 2024, a trend also visible in neighboring cities such as Bangkok, Thailand.

The Knight Frank report, titled ‘APAC Outlook: Unlocking Investment Potential: Emerging Markets in Asia-Pacific’, explores the dynamics of the notable real estate markets across the Asia-Pacific (APAC) region, including trends in the Philippines, India, Malaysia, Thailand and Cambodia.
According to the analysis, while only 24.2 percent of Cambodia’s population currently resides in urban areas, this share is projected to increase to 30.6 percent by 2030, and a further escalation to 41.1 percent by 2050.

According to Knight Frank, this swift increase in urbanization presents a growing need for the development of affordable housing, especially in Phnom Penh.

As young rural populations from across Cambodia migrate to urban centers for better opportunities, increasing disposable incomes and reduced borrowing costs, they will simultaneously drive domestic housing demand, the report explained.

The report highlighted that while foreign interest and investments continue to shape the landscapes of markets in the APAC region, such as Cambodia, understanding local dynamics still remains essential for investors looking to capitalize on emerging opportunities in the region.

Hence, increasing rates of urbanization being witnessed in Cambodia, and especially Phnom Penh, provides a positive outlook for investors looking for long-term gains on residential property investments, given the rising potential of domestic demand for inner-city housing, whether in terms of rental returns or eventual asset resale rates.

Ross Wheble, Country Head of Knight Frank Cambodia, said that foreign investment continues to be a key driver for the Cambodian property sector.

“Investment has been pouring in from key countries such as Japan, Singapore, Korea, Malaysia, Chinese mainland, Taiwan, and Hong Kong SAR,” he said, adding that “reflecting strong international interest in our market.”

Meanwhile, developers are increasingly diversifying their product offerings to stand out from the crowd, he said.

“Developers are increasingly integrating wellness-oriented features into their projects; however, these additions are more often used as unique selling points rather than being driven by explicit buyer demand,” Wheble explained.

Detailing more on Phnom Penh demand trends this year, the Knight Frank report highlighted that in desirable downtown areas like Boeung Keng Kang 1 (BKK1), strong demand for rental properties is attracting both local and foreign investments.

Source: Knight Frank