Ascott Limited: strategy in Indonesia

Kenneth Rogers, Regional General Manager, Indonesia & Australia of The Ascott Limited talks about Ascott in Indonesia.

Why would Ascott choose Indonesia? 

Ascott has been investing in real estate in Indonesia for more than 20 years, and we have been through various cycles in the economy.  We have a long-term outlook on real estate investment, and we will continue to invest going forward as well.  We generally have a positive outlook on Indonesia, and looking for investments in Jakarta, and also management contracts in Jakarta and other cities, and franchise of our brands as well, in Indonesia.

From my understanding, Ascott is here to stay?

We have been here more than 20 years, and we still have long-term commitment to the country for investment, and also through management contracts and franchise as well.

We have very strong presence throughout Southeast Asia and Australia.  That is where nearly a majority of our properties are located, and we are still continuing to invest and grow our business within the region.  We certainly see good, long-term outlook on the area for investment in the real estate sector.

What about Indonesia?  What are the expectations? 

Well, developing countries, things can be fairly fluid and can change.  It is really getting on the ground, finding out what’s happening.  Generally, we think the expectation for Indonesia is good.  Our parent company, CapitaLand, is investing in Indonesia in mixed use real estate projects.  We see the government moving in the right direction, a bit more stability, more openness, more transparency.  We think that is going good for the country, and as we’re going forward, we can really only see things improving.

What are the key investment opportunities that you see for the group in Indonesia today? 

We are a real estate player, and certainly we do see opportunities for investment.  We primarily invest in Jakarta, in the main city of the country.  We do management contracts and franchise agreements from our properties in other cities as well.  I think there is definitely opportunities there.  All sectors would have opportunities.  It is just making it a right fit for yourself as a company. 

At the moment, yes, the whole world is in turbulent times.  We think if you are taking a longer term outlook on your business and investment and are committed, then true to your core business, you will get there.  As we have said, we have been here more than 20 years.