Indonesia

Land is just like other commodities. It gives benefit to the owner or the right holder. Land right is also being sold and purchased in the market. As part of market transparency, an Index that indicate the movement of price could also be developed to help people to get the information of land market. In Indonesia, it is a quite new thing to have a land market index. In Malaysia, yearly housing index has been released by its Valuation Agency. It provides the information of the price movement of the housing which includes every types and location in every year. In Indonesia, property index could be commenced by introducing the (vacant) land price index. There are two reason why Indonesia should start with land price index. First because Land is very static in supply but on the other hand always have increasing demand. It affect the increasing value of land overtime. The second reason is modeling land market is quite simpler than property market. There are very few uniform housing in Indonesia. Most other area have a vary kind of housing. It is difficult to generalize the market of big variety of housing type. In order to develop the land price Index, the National Land Agency of Indonesia conducted a pilot study in 2009. In the beginning phase, the pilot study is done in the City of Pontianak in West Kalimantan