Collaboration Between D3 Labs, BTN, And Reliance Group.  

JAKARTA – D3 Labs, a provider of blockchain-based financial technology solutions, in collaboration with Indonesia’s state-owned bank PT Bank Tabungan Negara (Persero) Tbk (BTN) and PT Reliance Manajer Investasi (RMI), has developed for the first time a property asset tokenization product in Indonesia. This was achieved through a blockchain technology-based Real Estate Investment Fund (REIT) scheme. This achievement is the outcome of BTN’s collaboration with PT Reliance Manajer Investasi (RMI) as an investment manager and D3 Labs as a blockchain technology provider for digital asset tokenization. 

Indonesia has emerged as a prime destination for international investors, with foreign direct investment (PMA) reaching a substantial USD 946.4 million or approximately IDR 14.19 trillion by the conclusion of the first quarter of 2024. Indonesia is the 4th most populous country in the globe, combined with a rising middle class, Indonesia is commonly viewed as one of the largest and most potential emerging markets in the world. Despite the prevailing global economic difficulties, Indonesia’s real estate sector has presented a picture of resilience, drawing interest from investors across Southeast Asia, as well as from Hong Kong, China, India, Australia, Japan, and France, who are keen to participate in real estate investment within the nation. The current investment opportunity has captured the attention of approximately 195 countries worldwide, each of which is actively formulating regulations about the tokenization of real-world assets.

Tigran Adiwirya, CEO of D3 Labs, has noticed a widespread adoption of blockchain technology for digitally tokenizing financial assets in recent years. This trend is mainly due to the highly liquid and efficient market. According to Nareits – the Association for REITs and Mortgage REITs based in Washington D.C., the total equity market capitalization for listed REITs has reached USD 2.0 trillion by the end of 2023. In September 2023, the tokenization of REITs surged to USD 178 million, marking a remarkable 90% growth from the 2022 figures. This substantial increase can be attributed to utilizing blockchain technology, which introduces new investment opportunities and positively impacts liquidity. It’s important to note that REITs’ tokenization currently only represents a small fraction of the potential opportunity. With this in mind, D3 Labs, along with BTN and Reliance, are strategically positioned to capitalize on this growing trend.

BTN’s Director of Risk Management, Setiyo Wibowo, emphasized BTN’s endorsement of technological innovation within the financial sector through digital asset tokenization. The primary objective is to broaden investor access to domestic and international property investments. Setiyo explained, “BTN will supply property assets that conform to the underlying REITs’ criteria for subsequent tokenization. This process designates the property owner, an active BTN debtor, as the issuer of REIT products. RMI will oversee the management of these assets, while D3 Labs will handle their tokenization.”

Setiyo mentioned that REIT Tokenization will be developed through a Sandbox or trial with OJK (Indonesia’s Financial Services Authority)  conducted by RMI and D3 Labs. In this scenario, investors will purchase REITs offered by RMI as an investment manager, and their participation units will be transformed into digital tokens by D3 Labs to broaden the market internationally.

Meanwhile, the provisions for REIT products have been issued since 2017 by OJK Regulation No. 64/POJK.04/2017 concerning Real Estate Investment Funds in the Form of Collective Investment Contracts. Entities that issue REITs stand to gain numerous advantages, including access to new funding for business expansion, tax incentives, and transforming illiquid assets into liquid assets. Similarly, REIT investors can benefit from a highly affordable alternative investment in real estate, protection against inflation, and increased transparency.

“D3 Labs specializes in providing blockchain technology solutions for financial services institutions. Our blockchain solution, SeaSeed, is a blockchain extension module that enables financial services institutions to securely manage their transactions and data confidentiality. Our goal is to assist in the development of standardized banking products utilizing blockchain technology, with a focus on transaction security, transparency, and accountability,” stated Tigran.