"What we need to focus on is how the investment trend will evolve in the future. Whether we like it or not, we must be prepared to create more sustainable products," said Rakhmat Yulianto, director of promotion development at the Ministry of Investment.
He made the remarks at the "Indonesia CEO & Leaders Forum 2025: Redefining Indonesia's Sustainable and Investment-Driven Property Sector" in Jakarta on Thursday.
Yulianto acknowledged that this will present a challenge for the property industry, which is committed to reducing carbon footprints both nationally and globally.
"However, this also presents an opportunity for us to not only create new environmentally-friendly properties but also to renovate and develop existing properties to be more sustainable," he explained.
Additionally, Yulianto pointed out that many Indonesian consumers are becoming more aware of the need for greener housing.
"If we look at this, it's not only the demands of companies but also those of Indonesian consumers. Consumers are increasingly aware of sustainability," he added.
At present, he noted that carbon emissions in the property sector remain quite high. Therefore, stakeholders, including developers and the government, need to find solutions to reduce these emissions.
"We must not only consider the operational aspects of the property itself, but also the social aspects," he said.
In his presentation, Yulianto highlighted Indonesia's commitment to achieving zero emissions by 2060 or sooner.
"With this commitment, the government is supporting the reduction of carbon emissions in the real estate sector, which, according to a 2022 JLL report, contributes around 40 percent of global carbon emissions," he said.
Implementing sustainability principles in the property sector can offer various benefits to companies and investors.
These include increasing asset value and competitiveness, attracting tenants who prioritize environmental concerns, reducing operational costs through energy-efficient systems, enhancing brand reputation, boosting competitive advantage, and generating long-term financial benefits.
Related news: Housing sector can help lower emissions: Environment Ministry
Related news: Indonesia encourages green investment for sustainable development
Translator: Arnidhya Nur Zhafira, Yashinta Difa
Editor: Anton Santoso
Copyright © ANTARA 2025
