Indonesia REITs

Indonesia Real Estate Investment Trusts (REITs) are companies that own and operate income producing real estate properties. These properties can include office buildings, shopping centers, industrial warehouses, data centers, and apartment buildings, among others.

In Indonesia REITs are required to distribute at least 90% of their taxable income to investors in the form of dividends. This makes them an attractive option for income-oriented investors.

List of Indonesia REITs by Market Capitalization and Dividend Yield

When evaluating REITs a useful metric to consider is market capitalization which is the total value of a company’s outstanding shares. In general larger REITs tend to have more diversified portfolios and a longer track record of performance. This makes them a safer investment option.

In addition to market capitalization investors may also want to consider the dividend yield of a REIT when evaluating its potential as an investment. The dividend yield is the annual dividend per share divided by the share price.

The below table is a list of REITs listed in Indonesia sorted by market cap. Interact with the table to sort and filter as desired.

Indonesia REITs Dividend and Payout Ratio

The best REITs have a sustainable and dividend. Interact with the chart below by selecting items in the legend that interest you. To filter the chart scroll up the to table to use the search filters.

How to Invest in REITs in Indonesia

There are three primary ways to invest in Indonesia REITs:

  1. Purchase shares of companies directly on the Indonesia Stock Exchange using a broker.
  2. Purchase shares of ETFs that hold Indonesia real estate companies.
  3. Buy into a fund (hedge fund) that invests in real estate.

How are Indonesia REIT Dividends Taxed at the Shareholder?

In Indonesia, dividends from Real Estate Investment Trusts (REITs) are subject to a 20% withholding tax at the shareholder level. This means that the REIT is responsible for withholding 20% of the dividends it pays out and remitting that amount to the government on behalf of the shareholders.

Shareholders will receive the remaining 80% of the dividends as net income that will be subject to personal income tax rates.

In Indonesia for a REIT to be considered a “qualifying company” and eligible for the imputation credit system it must meet the following conditions:

  1. It must be a resident company for tax purposes.
  2. It must be widely held, meaning that no one person or group of associated persons owns more than 50% of the voting rights or equity in the company.
  3. It must have paid at least 90% of its taxable income in the form of dividends in the relevant tax year.

It’s important to note that not all REITs meet these criteria and therefore not all dividends paid by REITs may be eligible for the imputation credit system.

It is important to check with the REIT and consult a tax professional

REIT ETFs in Indonesia

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Indonesia REITs Frequently Asked Questions

What is the total market cap of all REITs in Indonesia?

The total is Column with ID 10 is not found in table with ID 9! Indonesian Rupiah

How much REITs should be in a Retirement Portfolio?

It is difficult to say what percentage should be in a retirement portfolios as this will vary depending on the specific goals and risk tolerance of the investor.

How are REITs Taxed in Indonesia?

Real Estate Investment Trusts (REITs) in Indonesia REITs must distribute at least 90% of their income to share holders.

Are REITs Tax Free?

REITs are not tax free unless they are held in an account or trust that is structured in a way that allows them to be tax free or tax differed. Please consult with your financial advisor for more information.

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