Property Industry in Indonesia Using Porter Diamonds Model

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Assessing Porter’s diamond model to analyze the development of the Property Industry in Indonesia. -------------------------------------------------


This study applies Porter’s diamond framework, which tries to identify the sources of international competitive advantage to Property in Indonesia. The study also aims to shed some light on the competitive structure of the property industry. The findings are generally supportive of Porter, meaning that the diamond framework works in a developing Indonesia’s setting. The results suggest, however, some major areas in the framework (especially domestic rivalry and the role of government) because back in Indonesia, property is one of the most profitable industries. Since Indonesia growth good in the economic, falling interest rates and buyer rising purchasing, that’s the major factor which developing shine of this industry.

Factor Conditions
Indonesia is a developing country with a large and rapidly growing population, but according from BPS (Indonesia data, year 2011) there are approximately 14 million families or equal to 23% of the 62 million families in Indonesia that do not have homes or place for living and this makes Indonesia property industries are remarkable. Not only the local players can see great prospects of this industry but foreign investors also see the huge opportunities and big benefits potential from Indonesian property industry.

Demand Conditions
High demand for property is also supported by the condition of Indonesia’s good growth economic, in 2011 Indonesia’s economic growth to 6.5% while the economy world in general only 4.4%. Also property prices in Indonesia are still relatively cheap in Asia but the value of the re-turn of the highest. It encourages property within the...
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