According to data from the Association of Indonesian Internet Service Providers (APJII), internet penetration in Indonesia's urban areas was more than 72% in 2017 with a countrywide average just shy of 55%.

The IMF reports Indonesia also has the third largest youth population in the world and that combined with more than 130 million active social media users makes the country the biggest digital economy in Southeast Asia.

A recent McKinsey report - Unlocking Indonesia's Digital Potential - argues digitization could expand Indonesia's economy by 10% of GDP and add 3.7 million new jobs by 2025.

Digital giants like Facebook, Google, Twitter and YouTube, as well as home-grown Indonesian startups, are keen to make the most of the country's growing internet base, particularly the growing youth population who are fast adopters of new technologies as well as being a sizeable customer base for a digital economy.

The IMF estimates there are more than 1,700 digital startups in Indonesia, which puts the country almost at the top of the digital tree behind the United States, India and the UK.

EINNewsDesk suggests this growth when combined with a growing interest in residential properties, particularly among a young and growing middle-class, means the Indonesian real estate market is on the edge of something significantly big.

While the technology landscape of Indonesia is still in its infancy, fast thinkers are making important changes and in realigning the wheel. This is where Real Estate tech, or as the startup world calls it, #Proptech, has enormous potential.

The growth of Indonesia's real estate market is fast making traditional business models that do not adapt to the country's very specific needs old hat. #Proptech is revolutionizing how Indonesians list, search and buy property with some innovative entrepreneurs working to provide efficient software to make it all happen sooner.

The warning signs are there for the early property portals such as Rumah, Rumah123 and Lamudi (all either acquired by or backed by bigger international entities) and all falling behind the curve in terms of specialization and content.

Innovative Indonesian #Proptech models, for example, already exploring and developing more dedicated solutions include specialist niche platforms for warehouses, commercial lots, factories, co-working spaces and Rumah Kost (guest houses extremely popular with those relocating cities in search of employment).

Merging property listings with appropriate content is another angle, which addresses specific needs and a changing market. There are also models being developed to help retail brands and people search and book spaces for short periods of time for events, exhibitions, and pop ups.

Things are not just changing for consumers. #Proptech is also changing how developers are actually building and incorporating cutting-edge technology into urban infrastructure, monitoring their cityscapes via the so-called Internet of Things (IoT.)

Real Estate developers, such the Lippo Group, are very much a major player in this space. A core element of their USD 21 billion Meikarta development, for example, is being dubbed Indonesia's Silicon Valley and once completed could revolutionize not just how future towns and cities are built but also the lifestyles they provide for the people who live there.

Sources: IMF, APJII, EINNewsdesk. PwC, McKinsey, Urban Land Institute, YoStartUps

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