REPUBLIKA.CO.ID, JAKARTA - Managing Director Corporate Strategy and Services of Sinar Mas Land, Ishak Chandra said that Indonesia remained a top priority investment in property sector in Asia. Property market, especially in capital city of Jakarta is still considered to be the third in Asia after Kuala Lumpur (Malaysia) and Bangkok (Thailand).

"In terms of annual gross rental yield, Jakarta is in the top two positions with 7.05 percent per year after Manila (Philippines) with 7.06 percent," Chandra said recently as reported by Zaky Alhamzah and Antara.

It is higher than other countries. The favorite property that will increase significantly in Indonesia this year is office rent and office property rights. Chandra said that Indonesia was still far from property bubble due to increased demand and speculation. Once the demand stops, the price will decline.

Sinar Mas Land as one of the largest property developers in Indonesia also paid attention to the construction of office buildings, condominiums, industrial estate, retail and housing in Jakarta this year. Meanwhile, Chandra projected that property sector in Indonesia in 2014 would slow due to some factors, especially low macroeconomic condition, Bank Indonesia's policy on loan to value (LTV), as well as general election.

In terms of macro economy, Indonesia is going to improve more than five percent. There are only several countries expected to excess Indonesia this year, such as China and Philippines. National inflation is also expected to slow, from 9.8 percent in 2013 to 4.5 percent in 2014.

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