Indonesian REITs

Overview

Back in the 1960s, the US Congress introduced a new type of investment instrument to the public, which were known as Real-Estate Investment Trusts (“REITs”). REITs enabled all kinds of investors, including small investors, to receive income-producing real estate. Since then, REITs have become available investment instruments all over the world, including in Indonesia.[1]

In Indonesia, REITS were first introduced by the Capital Market Supervisory Agency (“BAPEPAM-LK”) back in 2007 as real-estate investment funds (Dana Investasi Real Estat - “DIRE”) in the form of collective-investment contracts (Kontrak Investasi Kolektif – “KIK”).