Rusmin Lawin, Global Ambassador of Real Estate Indonesia since 2008, straddles the property market like a colossus. With stellar achievements, he acts as the conduit linking the investment ecosystems of Asia-Pacific and the Middle East. Rusmin has not only led from the front, catalysing the development of the country and the region with his initiatives, he also serves as a role model to the younger generation of leaders.
He is the recipient of Asia Pacific Real Estate Leader at CEO BURJ AWARD 2022 in Dubai and serves as Chairman of the Regional Developments Committee at Indonesia Chamber of Commerce and Industry (KADIN), Vice President of Real Estate Indonesia Developers Association, and a Board Member of Indonesia Hong Kong Business Association.
Of the many hats he wears, Rusmin occupies major positions in FIABCI, including President of FIABCI Asia Pacific and FIABCI Representative to the United Nations Geneva. In an interview with REM TIMES, Rusmin digs into the realty sector of Asia Pacific, providing a fresh perspective of its role in economic growth and its symbiotic relationship with infrastructure development.
What are the initiatives you have taken as the president of FIABCI?
As the president of FIABCI, I oversee the Asia-Pacific region, which includes a set of 18 countries with diverse social, economic and cultural settings. Working to provide an enabling environment for innovation and research, we are focused on seeing the development of real estate with an emphasis on Asia where we have witnessed remarkable growth. In an attempt to foster global outreach, I have criss-crossed the globe to promote projects such as Nusantara New Capital City, one of the biggest infrastructure projects ($33billion).
The project will act as a new economic hub in the ASEAN region and lead the eastern region of ASEAN under BIMP EAGA (Brunei Darussalam-Indonesia-Malaysia-Philippines East ASEAN Growth Area, a sub-cooperation programme of the southeast Asian bloc. The subregion is spread over a land area of 1.6 million square kilometres, with about 73 million inhabitants. In addition, the liberalisation of foreign investment in the property sector, according to which one can make a purchase under one’s name using a passport, will go a long way in making Indonesia a global property hub. These are the initiatives that have contributed to the consolidation of the property investment market in the region.
Which leadership principles provide you with a leverage to function efficiently in the real estate sector?
My leadership principles are enshrined in the belief that real estate acts as a significant asset, especially for those looking to scale the socioeconomic curve. I am a strong supporter of the idea that being a property owner is the key to economic success even when digital innovations are hogging the limelight. My objective, as a leader in the real estate sector, is to send the message– especially to those in the developing world—that ownership of property wields immense economic clout.
The property market is on a sharp growth trajectory in Indonesia. What are the reasons behind this expansion? Do you think the nation’s infrastructure development has fuelled real estate growth?
Several reasons are behind the growth of the property market in Indonesia, making it an investor’s paradise. First, population data of the nation project a fast-expanding demand for housing. Second, Indonesia —one of the most populous countries in the world — has stepped up investment in infrastructure such as toll roads and the recently developed Bullet Train. The development in infrastructure has a multiplier effect on the property market, boosting growth and driving prices.
In addition, Indonesia has a huge housing backlog of around 11.6 million units, with the shortage amounting to about 400,000 units per annum. The yawning gap makes the property market ripe for investors eyeing significant gains.
What are the long-term goals in conjunction with which you are leading the organisation?
A primary goal of our organisation is to reduce the housing backlog by developing affordable but quality housing, especially for workers. For promoting industries, we aim to use the advantages provided by Indonesia such as a huge market, abundant natural resources, and developed infrastructure to draw investment — both domestic and international. Being the leader, my commitment lies in keeping growth by providing an enabling environment that is conducive to promoting investment and sustainable economic growth.
You have a wealth of industry experience. Drawing on the quality and length of this experience, how will you advise the leaders of tomorrow?
In today’s world given to nanosecond attention spans, focus and determination seem to come at a premium. These days, it is common for young professionals to change jobs frequently for immediate financial reward. I will advise them to find their niche in the business and acquire domain expertise with the help of continuous learning and development.
