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REITs in Indonesia: Exploring the Best Real Estate Investment Trusts

Indonesia’s real estate market continues to attract both local and international investors, thanks to its growing economy, urban development, and rising middle class. One of the most accessible ways to invest in property in Indonesia without owning physical real estate is through Real Estate Investment Trusts (REITs). These investment vehicles offer exposure to the property sector while providing consistent income and portfolio diversification.

In this article, we’ll explore what REITs are, how they work in Indonesia, and highlight two of the most prominent REITs in the country: Lippo Karawaci and Lippo Malls Indonesia Retail Trust. Whether you're a first-time investor or looking to expand your portfolio, understanding REITs in Indonesia can help you make informed investment decisions.

A Real Estate Investment Trust (REIT) is a company that owns, operates, or finances income-generating real estate. Investors can buy shares of a REIT on the stock exchange, similar to buying stocks. In return, they receive dividends based on the income produced by the properties held in the REIT’s portfolio.

REITs allow investors to gain access to large-scale, income-producing real estate without having to buy or manage the properties directly.

Indonesia’s REITs are structured under Dana Investasi Real Estat (DIRE), regulated by the Otoritas Jasa Keuangan (OJK) — Indonesia’s Financial Services Authority. Although the REIT market is still developing compared to other Southeast Asian nations like Singapore, it shows strong growth potential due to increasing urbanization and real estate demand.

Lippo Karawaci Tbk (LPKR) is one of the largest property developers and REIT operators in Indonesia. The company has built an extensive portfolio, including hospitals, residential properties, and retail centers. It acts as a parent company and sponsor for many of Indonesia’s real estate trusts.

Key Highlights

• Largest diversified property company in Indonesia

• Owns Siloam Hospitals, Indonesia’s biggest private hospital network

• Actively develops urban townships and mixed-use developments

• Strong presence in Greater Jakarta and other major cities

Why It Matters for REIT Investors

Lippo Karawaci's subsidiaries and affiliates often inject high-quality assets into REITs, offering investors stable returns and exposure to Indonesia’s booming healthcare and retail sectors.

Listed on the Singapore Exchange (SGX), LMIR Trust is a REIT sponsored by Lippo Karawaci. It focuses specifically on retail properties across Indonesia, owning and managing malls in high-traffic urban areas.

Key Features

• Portfolio includes over 20 retail malls and shopping centers

• Tenants include global and regional retail brands

• Strategically located in cities like Jakarta, Medan, and Surabaya

• Regular dividend payouts to investors

Why It’s Attractive

Retail remains a vital sector in Indonesia, especially as consumer spending continues to grow. LMIR Trust offers investors access to a recession-resistant segment, while benefiting from Lippo’s deep experience in retail property management.

1. Passive Income: REITs pay out regular dividends, making them a good choice for income-focused investors.

2. Diversification: Gain exposure to real estate without owning physical property.

3. Liquidity: Shares are traded on public exchanges, making it easier to enter or exit the investment.

4. Access to Professional Management: Properties are managed by experienced firms, reducing the burden on individual investors.

• Limited Choices: Indonesia currently has fewer listed REITs compared to markets like Singapore or the US.

• Currency Risk: For foreign investors, currency fluctuations can impact returns.

• Regulatory Landscape: Changes in real estate or tax policies can affect REIT performance.

As Indonesia’s real estate market matures, REITs like Lippo Karawaci and Lippo Malls Indonesia Retail Trust are becoming key players in attracting investment into the sector. For both domestic and foreign investors, these REITs offer a stable and scalable way to invest in Indonesia’s property boom.

Whether you're seeking passive income or portfolio diversification, understanding and investing in REITs in Indonesia can be a smart move — especially as the market continues to expand in 2025 and beyond.