Seeing the extent of digitalization in the property business in Indonesia

The pandemic is considered to have accelerated the growth of the platform proptech in Indonesia. This is indicated by the urgency of the property business to be able to accelerate all processes by adopting digital. To see what the trend and next wave of business looks like proptech In Indonesia, it is also necessary to look at changes in habits on the customer side.

In the media meeting session held by Sinar Mas Land last week, there were Maria Herawati Manik (Country Manager Rumah123), Indira Shadrina (Co-Founder & CCO IDEAL), Irawan Harahap (Chief Digital Tech and Ecosystem Sinar Mas Land), Mulyawan Gani (Chief Digital Tech and Ecosystem Sinar Mas Land). Transformation Officer Sinar Mas Land), and Bayu Seto (Partner Living Lab Venture). The discussion discussed the development and potential proptech in Indonesia.

Digital innovation and young consumer opportunities

After doing j with 99.co, house123 recorded an increase in the number of user visits on the website during the pandemic until now. To be able to continue to present relevant innovations, they also strive to carry out activities independently online with related partners to encourage their agents to perform faster follow up, when a potential buyer or already did a search online.

"What happened was that during the pandemic, many options for property search began to emerge online using 3D technology. Before the pandemic, this technology had not been widely used by buyers and agents, and only served as a complement," said Rumah123.com Country Manager Maria Herawati Manik.

However, according to Maria, although property developers have quickly adopted digital, not many agents are willing to carry out activities directly online. For Rumah123 continue to encourage all agents to carry out activities omnichannel, by combining the search process online then followed up again offline.

"Especially from the younger generation. It takes on average about a week for them to do their home research of choice, some even take more. As a platform we are trying to see what it looks like point bread them to be able to carry out purchasing activities until the final," said Maria.

Starting to appear at a young age for property purchases, big property developers such as Sinar Mas Land have also seen. According to Sinar Mas Land's Chief Transformation Officer, Mulyawan Gani, since 2020, many people aged 40 and under have started buying property. It is estimated that in the next five years more young people will make purchases.

"With platforms such as Rumah123 to IDEAL, it is hoped that it can provide more in-depth information to potential buyers. In the future we also want to focus on research and decisions to buy a house, for that education is important for us as property developer, said Mulyawan.

IDEAL also has a mission to be a relevant platform for potential buyers who want to make a home purchase through "responsible lending". Utilizing well-known development partners and banks, their platform makes it easy to be able to streamline the home buying process for today's young generation.

"We see that the biggest fear of the younger generation when they want to buy a house is the rejection of KPR which turns out to often happen fintech that supports the property sector, we hope to minimize the rejection of mortgages among the younger generation," said IDEAL Co-Founder & CCO Indira Shadrina.

Expand the ecosystem through the "Digital Hub"

Sinar Mas Land has carried out digital transformation to provide the best services and products for the community since 2016. In terms of infrastructure, the company implements network provision fiber optics for high-speed internet, traffic monitoring through traffic command center, and so forth.

Since 2017 Sinar Mas Land has also invested 1,5 trillion Rupiah to be able to launch their plan to expand the ecosystem. In the future, Sinar Mas Land will prepare investment funds of up to IDR 5 -6 trillion to continue to develop the Digital Hub area. The company itself claims that so far it has pocketed revenue Rp1 trillion-Rp 1,2 trillion from startups.

They also developed the Digital Hub, a 26-hectare area dedicated to communities, educational institutions, startups and multinational companies in the digital and creative technology fields. Companies such as Traveloka, Unilever, NTT, Grab, and Apple has now entered the Sinar Mas Land digital ecosystem.

The occasion also discussed Sinar Mas Land's efforts to expand their ecosystem through the Digital Hub. Currently there are 4 startups unicorn in Indonesia with an office in BSD. In the near future, the BSD area will also become a TikTok Hub for content creators of TikTok in Indonesia.

"In addition to providing infrastructure, we also want to focus on developing digital talent. At BSD, there are currently many schools and classes for relevant education which are expected to be able to connect relevant talents with tech company to existing startups," said Sinar Mas Land's Chief Digital Tech and Ecosystem Irawan Harahap.