Silver lining

Ferry Salanto, Colliers' senior associate director, said other regions and cities in Indonesia also had growth potential in the senior housing industry, notably Bali, which could leverage its appeal as an attractive destination for foreign retirees.

He said that Bali's biggest market for senior housing is customers from overseas. He further emphasized that the senior living ecosystem could be built in any area by developing its supporting facilities to accommodate senior living.

"So, sell the property and services altogether in one package," he suggested.

Herman Kwik, chairman of the Indonesian Senior Living Association, also pointed to foreign senior citizens as a potential market for areas like Bali.

"Bali is known for its tourism… I think the potential lies in Bali," he said.

He added that while many sectors in Bali had tapped the potential by offering hotel services targeting foreign seniors, these may not meet all their needs and it could expand the industry by also investing more in retirement homes with adequate senior living facilities.

The senior housing industry in the country has existed for more than a decade, he noted, but it remains relatively small and has shown only modest growth so far.

"But we see this as a starting point. Moving forward, we will thrive faster than in the past 10 years, considering the rising consumer awareness about commercial (solutions) and shifts in family culture and lifestyle," he said.

"Demand will also increase in the next five to 10 years, but it is not yet apparent," he said, encouraging more investors to enter the industry even if it meant starting small because when the growth booms, "it will come big and fast".

He also urged the government to implement clearer regulations, streamline permit procedures and provide tax incentives to boost investments in the sector.

In addition, he suggested targeted subsidies for those most in need, encouraging the population that could afford private-sector retirement services to consider switching to commercial solutions.

I Dewa Gede Karma Wisana, head of the University of Indonesia's Demographic Institute, explained the implications of Indonesia's demographic trends of a decreasing mortality rate, increasing life expectancy and lower fertility rate.