Q4 2022 ColliersQuarterly Jakarta

Quarterly | Office | Jakarta | 4 January 2023
Investors focus on fundamentals and

defensive strategies as a result of market
volatility
Insights & recommendations

Because of the unpredictability of economic conditions, which can change at any time, most businesses
prefer to remain at their current office location rather than relocate. Businesses are seeking cost-effective
ways to use space while also attracting workers back into office from the work-from-home era. Developers
and investors are looking for ways to modify their strategies and portfolios in response to these changes
and new requirements. The hybrid working system is still being implemented. As a result, more vacant
spaces put landlords under more pressure and give tenants more leeway in the negotiation process.
Global trends show that most employees are eager to return to the workplace, especially if it is close to
their home. A satellite office business model is feasible, but proper office space is difficult to come by in the
suburbs. It is not impossible and will most likely provide a good opportunity for landlords to popularize the
satellite office working model.
2023–2025
Q4 2022 Full Year 2022 Annual Avg.
The election in 2024 is expected to slow office

absorption slightly. As a result, developers will
Demand make every effort to increase occupancy rates in
the first six months of 2023. Technology-based
businesses, such as IT and data centres, are -127,324 sq m -310,545 sq m 180,039 sq m
expected to grow further. Mineral and renewable
energy companies, both domestic and
international, will continue to require more office
space despite inquiries for relatively small spaces.
No new projects will be launched until the end of

2022, and developers appear to be waiting even
Supply longer to begin projects. From 2023 to 2025, the 25,000 sq m 168,618 sq m 238,400 sq m
cumulative supply is expected to grow at a rate of
around 2% per year.
1
Annual Avg Growth
QOQ/ YOY/ 2023–2025/
End Q4 End 2022 End 2025
The time is not yet right, and developers must 0% -0.7% 5.46%
plan carefully if intending to raise rents, at least
Rent until 2023. However, rents are expected to rise IDR214576 IDR214,576 IDR242,757
5%-6% per year from 2023 to 2025.
With the large additional supply in 2023, vacancy 1.36 4.11 -0.04
is expected to rise by around 2 basis points.
However, overall vacancy is expected to fall by 0.1
Vacancy bp per year between 2023 and 2025. 26.3% 26.3% 26.2%
The selling price will stabilize, and the volumes of -8.7% -10.9% 2.39%
office investment will be relatively limited. Overall,
Selling price the selling price is expected to rise by 2.0%-2.5% IDR40mio IDR40mio IDR42.9mio
per year from 2023 to 2025.
Source: Colliers. Note: IDR15,563 = 1 USD.
Development pause and Annual supply
completion delays significantly CBD Outside the CBD

550,000
reduced additional supply
440,000
Construction activity continues, albeit at a slow pace.
Some developers are still completing the certification 330,000
required to legally operate office buildings.
Approximately 700,000 sq m of new supply is 220,000
currently under construction in Jakarta, with about
70% of that space located in the CBD, and expected to 110,000
be completed by 2025. A slowdown in office
investment was caused by a rising inflation forecast 0
2023E
2024E
2025E
2016
2017
2018
2019
2020
2021
2022
and higher building material prices. Buildings already

under construction will be delivered, while new ones
appear to be delayed.
Source: Colliers
2
Investors are rethinking value and emphasizing these changes, many industry professionals and
environmental, social and governance (ESG) factors in decision-makers have stepped back to wait for a more
response to current occupant preferences, increasing stable economic environment.
regulatory requirements and operating asset costs.
Building sustainability and high environmental Occupancy rate
standards are now key requirements in office space
selection, particularly for multinational corporations. CBD Outside the CBD
Providing a safe working environment has become an 100%
essential component of global policies,
90%
Only two new operational buildings were completed
in 2022 – PNM Tower (previously known as Office One) 80%
and Menara BRI – both in 1Q 2022. Until the end of
2022, the total area of office supply in the CBD was 70%
7.04 million sq m. So far, the annual supply of office
space for 2022 is around 76,000 sq m, the lowest in 60%
recent years. Nonetheless, the small supply addition
50%
this year is beneficial in preventing overall occupancy
2023E
2024E
2025E
2016
2017
2018
2019
2020
2021
2022
performance from declining further.
Five office buildings, totaling approximately 320,000
Source: Colliers
sq m of new office space, are scheduled to be
completed in 2023. With the current low occupancy,
this will be a substantial amount of annual supply, and The pandemic has transformed office space from an
if the level of office space inquiries does not increase, unthinking necessity to an amenity that must add
the office market will face another difficult year. value to the company strategies and cultures of
tenants. The growing popularity of the hybrid work
South Jakarta continues to actively contribute to office
model and flexible office space has pushed landlords
supply outside of the CBD. MTH 27 Office Suites is a
to incorporate co-working areas.
recent project that began operating in 2022, bringing
total supply outside the CBD to 3.72 million sq m. Tenants continue to express a clear preference for
Another four projects have also been completed; high-quality space. Despite the fact that the current
however, those office buildings will most likely be downturn is unlike any other, it has already spurred
operational by 2023, adding about 115,000 sq m of innovation on both the landlord and tenant sides. To
new supply. compete, grade B and C office building owners will
likely be pushed to revitalize and upgrade existing
portfolios.
Leasing volumes are lopsided as Office business sectors showed signs of improvement
in the first half of 2022, with a high number of
occupiers become more cautious inquiries for office space. The most active industry in
due to uncertain economic the office leasing market is the renewable energy and
technology sector, which includes financial technology
forecasts (Fintech), information technology (IT) and data centres.
After two years of pandemic-driven correction, signs Other industries, such as medical manufacturing, law
of stabilization are beginning to emerge. Nevertheless, firms, consultants, software companies and
there is considerable debate and speculation about telecommunications providers, have already
the future, and it will take time for firms to recast committed to seeking office space.
strategies and determine how much space will be The fact that the number of inquiries began to decline
required in the future. The office sector is facing a set at the end of 2022 is not good news. Given the
of unforeseeable challenges that could lead to uncertainty of the global economic situation in 2023,
significant structural shifts in the coming years. more companies became cautious when planning to
Economic uncertainty is also clouding the picture, relocate. Some expansion plans have been cancelled
influencing the timing of such decisions. As a result of because tenants must plan for large, fixed costs at the
outset, which will greatly affect a company's financial
condition.
33
This situation has caused some businesses to Throughout the pandemic, landlords have kept rental
postpone expanding spaces to save on operational rates stable and have instead offered other incentives
costs such as fitting out. Meanwhile, most to drive leasing activity, such as free rent terms and
multinational corporations will follow parent company tenant inducement allowances. Tenants who renew
instructions before deciding whether to relocate or their leases for an additional year can expect to
remain in their current locations. Naturally, this will receive larger rent discounts.
necessitate a longer process until an agreement is
In the short term, more upward pressure on asking
reached.
rental rates is expected. However, in today’s tenant
Having said that, overall occupancy in the CBD was market, landlords must remain accommodating and
74.7% in Q4 2022, down less than 1% from 3Q 2022. flexible when negotiating with current tenants or
Meanwhile, outside of the CBD, average occupancy potential new tenants. Overall, their strategies will
fell significantly to 70.8%, a 4.3% drop QoQ. One vary depending on the occupancy rates of the
reason for a decline in average occupancy in 2022 has buildings.
been a lack of committed tenants. Large upcoming
Occupancy rate performance heavily influences a
supply is likely to drive the average occupancy to drop
landlord's policy on rental rate. Currently, there is a
both inside and outside the CBD.
large gap between asking and transacted rent
Continued strong demand for the best quality space because the absorption rate is still relatively low,
will cause demand for refurbished development or leaving plenty of room for negotiation. Landlords, on
buildings to remain high. Older buildings with the other hand, can offer policies that bind tenants for
outdated amenities will struggle to attract tenants, a longer period of time. Finally, all transactions can
resulting in an overabundance of obsolete vacant result in win-win situations for both parties.
space. The majority of occupier interest will be drawn
Due to a lack of office demand, developers have
to high-quality, well-located office buildings with
prioritized occupancy rather than increasing rental
amenities that enhance employee well-being and
rates. Some developers have even reduced their
engagement. Sustainable buildings that align with a
asking base rent to attract more tenants. As a result,
company’s environmental and social goals will also
the average rental rate in the CBD was recorded at
have a competitive advantage.
IDR239,209 in 2022, a decrease of less than 1% from
2021. Despite continuing to fall, rents performed
Rents continue to fall due to a much better in 2022 than they did in 2021, when they
fell by around 7% compared to 2020.
lack of positive factors driving
Some buildings gradually started to attract committed
market recovery tenants, despite their limited numbers, and this will
give landlords more confidence in reevaluating
Asking base rent
occupancy cost. However, it appears it is still too early
CBD Outside the CBD
for landlords to increase rental rates significantly in
2023.
IDR400,000
Nonetheless, we anticipate a 4% to 5% increase in
IDR320,000 average rent in 2023. This calculation includes some
premium office buildings that will be completed in
IDR240,000 2023.
IDR160,000 Outside of the CBD, the average rental rate was

relatively stable at IDR175,000 in H2 2022. However,
IDR80,000 this average rent was still 10%-11% lower than before
the pandemic (2019). Although it is still difficult to find
IDR0 tenants, landlords of some buildings with higher
2023E
2024E
2025E
2016
2017
2018
2019
2020
2021
2022
occupancy rates may begin to consider increasing

rents. Overall, the average rent is expected to rise by
Source: Colliers
1%-1.5% in 2023, compared to 2022.
4
Meanwhile, the average service charge was relatively The unfavourable situation caused by the pandemic
stable throughout 2022. In Q4 2022, the average has put increasing strain on the strata-title office
service charge was IDR82,000 in the CBD and market. Some developers and investors have offered
IDR62,000 outside the CBD. In contrast to rent, more realistic and competitive prices for available
external factors such as an increase in operational spaces. As a result, the average selling price in the
costs, including labour, electricity, and fuel, will have CBD was IDR50 million in Q4 2022, down 8.3% from
an impact on the service charge. The reactions of 2021. Outside the CBD, the average selling price was
building owners will vary greatly in response to this. IDR29.9 million, a 15% decrease from 2021. The last
Nevertheless, the average service charge is expected time the selling price outside the CBD was less than
to grow 3% in 2023. IDR30 million was in 2014.
Investment activity will continue to slow in 2023.
Investment volumes limited due Financing may be difficult to obtain as the cost of
capital increases and lender appetite diminishes amid
to market uncertainty finance market volatility.
Selling price We anticipate that political conditions will improve

following the election in 2024, followed by stronger
CBD Outside the CBD economic growth. As a result, the transaction volume
75 will increase, boosting developer confidence in selling
prices.
60
in IDR mio
45
30
15
0
2023E
2024E
2025E
2016
2017
2018
2019
2020
2021
2022
Source: Colliers
Appendix
Under construction projects
SGA Marketing
Project Name Location Developer
(sq m) Scheme
CBD
2023
T Tower Gatot Subroto Sadini Arianda 24,000 For Lease & Sale
Rajawali Place (St Regis

Rasuna Said Rajawali Group 40,000 For Lease
Office Tower)
continued
5
SGA Marketing
Project Name Location Developer
(sq m) Scheme
continuation
Autograph Tower (within

Thamrin Putra Gaya Wahana 84,267 For Lease
Thamrin Nine Complex)
Luminary Tower (within

Thamrin Putra Gaya Wahana 40,565 For Lease
Thamrin Nine Complex )
Jakarta MORI Tower Sudirman MORI Building 96,000 For Lease
2025
Indonesia-1 North Tower Thamrin Media Group 79,486 For Lease
Indonesia-1 South Tower Thamrin Media Group 72,814 For Sale
Outside the CBD
2023
TB Simatupang,
Sanggala Tower Sapta Tunggal Mulia 9,900 For Lease & Sale
South Jakarta
TB Simatupang,
The Sima Grage Trimitra Usaha 59,169 For Lease & Sale
South Jakarta
Fatmawati, South
One Belpark Office Harmas Jalesveva 17,800 For Lease
Jakarta
Cempaka Putih,
Lippo Tower Holland Village Lippo Karawaci 27,000 For Lease & Sale
Central Jakarta
2024
Sun Tower (The Owner Dharmawangsa,

Dharma Tatemono 35,678 For Sale
Suite by Dharmawangsa) South Jakarta
Menara Jakarta Office Kemayoran, Central

Agung Sedayu 90,000 For Lease & Sale
Tower Jakarta
Source: Colliers
6
For further information, please contact:
Ferry Salanto Eko Arfianto
Senior Associate Director | Senior Manager | Research |
Research | Jakarta Jakarta
62(21) 3043 6730 62(21) 3043 6726
Ferry.Salanto@colliers.com Eko.Arfianto@colliers.com
About Colliers
Colliers (NASDAQ, TSX: CIGI) is a leading diversified professional services and investment
management company. With operations in 63 countries, our 18,000 enterprising professionals work
collaboratively to provide expert real estate and investment advice to clients. For more than 27 years,
our experienced leadership with significant inside ownership has delivered compound annual
investment returns of approximately 20% for shareholders. With annual revenues of $4.6 billion and
$92 billion of assets under management, Colliers maximizes the potential of property and real assets
to accelerate the success of our clients, our investors and our people. Learn more at
corporate.colliers.com, Twitter @Colliers or LinkedIn
Legal Disclaimer
This document/email has been prepared by Colliers for advertising and general information only.
Colliers makes no guarantees, representations or warranties of any kind, expressed or implied,
regarding the information including, but not limited to, warranties of content, accuracy and reliability.
Any interested party should undertake their own inquiries as to the accuracy of the information.
Colliers excludes unequivocally all inferred or implied terms, conditions and warranties arising out of
this document and excludes all liability for loss and damages arising there from. This publication is
the copyrighted property of Colliers and /or its licensor(s). © 2022. All rights reserved. This
communication is not intended to cause or induce breach of an existing listing agreement.
Quarterly | Apartment | Jakarta | 4 January 2023
2023: Walking into headwinds

The apartment market in Jakarta in Q4 2022 was similar to the previous quarter, with no projects launched
and performance remaining stagnant. Despite the efforts of developers to revive the apartment market
with discounts and freebies, the sluggish economy, combined with a lack of government stimulus,
dampened buyer enthusiasm for apartment units, particularly investor buyers. The only positive catalyst
came at the end of 2022 from BI, which extended the loan-to-value ratio (LTV) easing until the end of 2023.
Furthermore, the apartment sector faces several challenges in 2023 that could dampen an appetite to
spend, including an increase in interest rates, which will inevitably raise mortgage rates, as well political
tension risks. As a result, we encourage developers to continue offering appealing payment plans,
innovative promotions, and, most importantly, to complete projects on time in order to attract potential
buyers.
2023–2025
Overall, sales in 2022 have been slightly better

than in 2021, as evidenced by more units sold. -0.05% -0.5%
Demand Demand will still be under-pressure given sluggish
macroeconomic performance, as well as limited 87.32% 87.32% 87-88%
new launch projects.
In 2022, 1,484 units were completed. This is only

25% from our projection in the early of this year,
592 units 1,484 units 5,729 units
Supply at 5,936 units.
Annual Avg Growth

QOQ/ YOY/ 2023–2025/
Only a few projects have raised their asking prices, 0.36% 0.63% 4%
albeit modestly. As a result, the average asking
Price price remains relatively flat. IDR35.36mio IDR35.36mio IDR41.4mio
1
Strata-title apartments Distribution based on location by 2022
Completed supply will be available for East Jakarta CBD

pickup beginning in 2023 9% 13%
The total supply of strata-title apartments has reached

220,451 units as of 4Q 2022, an increase of 0.3% QOQ
West South
and 0.4% YOY. This quarter saw the completion and Jakarta Jakarta
handover of two new projects – The Stature Jakarta 25% 19%
and 57 Promenade, totaling 592 units. Aside from
that, one project, Astha Kemang (formerly Synthesis
Residence Kemang), was rebranded and is expected
to be completed in July 2024 after a one-year hiatus.
Central
North
Some projects expected to be completed by 4Q 2022 Jakarta
Jakarta
failed to meet their deadline, accounting for 15%
19%
approximately 75% of the total expected 5,936 units.
Most of these postponed projects are expected to be Source: Colliers
finished by next year. As a result, the expected supply

from 2023 to 2026 is 22,919 units. Up until this year, West Jakarta dominated the supply
of new apartments in Jakarta, with most projects
located around the Kembangan area, where the
Annual supply Kembangan interchange connects the Jakarta Outer
Ring Road and Jakarta-Tangerang Toll Road. South
20,000
Jakarta and East Jakarta will contribute 2% and 3%
more apartment projects over the next three years,
15,000 respectively. Moreover, we see that the future supply
of apartment buildings in both South Jakarta and East
Jakarta is located near transit-oriented developments,
10,000
Units
such as the Fatmawati MRT station and the Ciracas

LRT station.
5,000
0
2023E
2024E
2025E
2026E
2015
2016
2017
2018
2019
2020
2021
2022
Source: Colliers
2
Distribution of future apartments (2023 to 2026) Annual apartment unit absorption
based on Region
12,000
East CB…
Jakarta 10,000
11%
8,000
Units
South 6,000
West Jakarta
Jakarta 22% 4,000
23%
2,000
North Central 0
Jakarta Jakarta
2015
2016
2017
2018
2019
2020
2021
2022
18% 14%
Source: Colliers
Source: Colliers
More sales from existing projects Take-up Rate Apartment Jakarta
As of the end of 2022, the overall take-up rate of

apartments in Jakarta remained relatively constant, at Existing projects Under construction projects
87.3%. Although under-construction apartment unit 100%
sales fell 2% YOY, the drop was offset by the resilient
performance of existing apartment projects. This was 80%
primarily due to developers focusing on selling their
existing projects, while new projects continued to 60%
experience slow absorption rates. As a result,
construction and sales of many projects was halted 40%
until the market returns to normal. We encourage
20%
developers to highlight amenities, such as
incorporated flexible workspaces that are suited to
0%
hybrid working, and to complete projects on time, as
2017 2018 2019 2020 2021 2022
well as continue to offer attractive payment and
promos to attract potential buyers. Source: Colliers
The only catalyst for the property sector came from

Bank Indonesia, which announced an extension of Looking ahead, we anticipate a more challenging
the loan-to-value ratio easing for mortgage lending property market environment in 2023, as the
until the end of 2023. However, based on our apartment sector faces headwinds from both higher
observations on the ground, this policy has had little interest rates and slower economic growth. Bank
impact on apartment sales thus far, as banks have Indonesia forecasts 4.4% GDP growth in 2023, which
their own policies regarding non-performance loan is slightly lower than the 5.4% growth forecast for
risks. In terms of buyers, we believe that before they 2022, and interest rates of 5.5–6.0%, which is higher
purchase more than two mortgages at the current than the all-time low of 3.5% for nearly two years.
higher interest rate, they will think twice. Furthermore, the consumer confidence index – an
indicator of consumer willingness to spend money –
has been declining since June 2022, and remains
lower than the pre-Covid level. Such factors will have a
negative impact on the property sector in 2023. On
the other hand, we believe that if there are more
positive catalysts, such as the continuation of the VAT
programme and/or a pause in the interest rate hike,
the environment will be once more conducive to
demand.
3
Consumer confidence index Indonesia We anticipate that asking price growth will remain
moderate at 3-5%, as we remain in a buyers’ market.
2018 2019 2020 2021 2022
Developers must compete with one another to offer
750,000
the best price to consumers, whereas buyers have
600,000 more bargaining power because they are familiar with
the product and can compare it to others.
450,000
300,000
Serviced apartments
150,000
CBD area will dominate supply until 2025
0
N…
M…
M…
S…
Oakwood Suites Kuningan opened in October 2022.
Aug
Jan
Feb
Dec
Jun
Jul
Oct
Apr
This apartment, which was previously managed by

Source: CEIC, Colliers
Aston, has 97 units ranging from studios to 3-
bedroom units. As a result, Jakarta’s total supply of
Price remains stagnant due to tight serviced apartments has increased to 6571 units. On a
related note, one serviced apartment in the SCBD
competition from secondary units
area that was supposed to open this quarter has been
In 2022, apartment prices remained relatively flat at delayed until next quarter due to the management’s
IDR35.4 million/sq m, with only a 0.63% YOY increase. plans for a rebranding. Consequently, Jakarta expects
In comparison to the inflation rate of 6.3% predicted to add 617 serviced apartment units next year.
by Bank Indonesia for 2022, YOY apartment price Nonetheless, we anticipate 4.4% CAGR in pipeline
growth was lower. This was largely due to an growth until 2026, with the total supply reaching 7,819
uncertain macroeconomic backdrop, which reduced units. The majority of the expected supply is to be
the appetite of investment buyers. In addition, the located around the CBD area.
abundance of secondary units at very competitive
prices may have put downward pressure on prices. In
some cases, semi-furnished units (equipped with The return to the office and the relaxation
stove, water heater, and kitchen set) have been of travel restrictions increase leasing
offered at prices lower than the primary unit, and this
volumes
has been demonstrated by the consistent increase in
the take-up rate for ready-to-occupy units (existing Serviced apartment leasing activity remained strong,
project). resulting in an increase in occupancy rate in 4Q 2022.
The continued implementation of the return to office
Asking prices across regions policy, as well as the easing of restrictions on
expatriate entry, boosted leasing activity during the
Q4 2021 Q3 2022 Q4 2022 QOQ YOY quarter. As a result, the occupancy rate of serviced
apartments in Jakarta is 61.15%, up 1.3% QOQ.
CBD 52,423,324 52,470,855 52,701,064 0.44% 0.53% Actually, the occupancy level could be higher because
December is traditionally considered a slow month for
South
39,543,742 39,668,964 39,847,210 0.45% 0.77%
leasing due to the end-of-year holiday season. In
Jakarta
terms of rental rates, landlords have managed to keep
Non- them stable at IDR402,324/sq m/month in the CBD
prime 26,776,667 26,887,930 26,936,580 0.18% 0.60%
areas
and IDR368,826/sq m/month in South Jakarta
(including non-prime area).
Overall
35,143,935 35,240,366 35,365,940 0.36% 0.63%
Jakarta
Source: Colliers
4
Occupancy rate Rental rate
100% CBD South Jakarta (incl. Non-prime area)
80% IDR500,000
IDR450,000
60%
IDR400,000
40%
IDR350,000
20% IDR300,000
0% IDR250,000
2015
2016
2017
2018
2019
2020
2021
2022
Q1 2020
Q2 2020
Q3 2020
Q4 2020
Q1 2021
Q2 2021
Q3 2021
Q4 2021
Q1 2022
Q2 2022
Source: Colliers Source: Colliers
Rent has recovered strongly as a result of

increased leasing demand and operational
costs
The outlook for 2023 appears relatively positive due to
factors such as the resumption of work, increased
expatriate arrivals, and no border entry restrictions or
quarantine measures for foreigners entering
Indonesia. Furthermore, given the increase in the
occupancy rate over the past six months, most
landlords have become increasingly optimistic about
the leasing market and are expected to raise rental
rates in response to rising operational costs, which
are primarily the result of inflation. In November
2022, the inflation rate in Indonesia was at 5.42% YOY.
With these considerations in mind, we forecast the
average 2023 rental growth to be 10–15%.
Appendix
Newly finished project
Name of Development Location Region Developer #units
The Stature Jakarta Jl. Kebon Sirih Central Jakarta Capitaland and Credo Group 96
57 Promenade Jl. Kebon Melati CBD Intiland 496
Source: Colliers
5
Under construction project
Apartment Name Location Region Developer #Units
2023
Aerium Taman Permata Taman Permata PT Itomas Kembangan Perdana

West Jakarta 366
Buana (South Tower) Buana (Sinarmas Land & ITOCHU Indonesia)
Le' Parc Jl. Thamrin CBD PT. Putragaya Wahana 100
Fatmawati City Center -

Fatmawati South Jakarta Agung Sedayu 620
Corona Parc Suite Tower
The Residences at The St.

Jl. HR Rasuna Said CBD Rajawali Property Group 164
Regis Jakarta
Fatmawati City Center -

Victoria Parc Suite Tower
Sakura Garden City (Tower

Jl. Bina Marga No.88 East Jakarta PT Trivo Group and Daiwa House 1100
Catelya)
Southgate Residence (3rd Jl. Tanjung Barat

South Jakarta Sinar Mas Land 450
tower - Altuera Tower) Raya
JKT Living Star Jl. Lapangan Tembak East Jakarta PT Sindeli Propertindo 594
Menara Jakarta (Tower

Kemayoran Central Jakarta Agung Sedayu 396
Equinox)
Menara Jakarta (Tower Azure) Kemayoran Central Jakarta Agung Sedayu 860
Cleon Park Apartment (North Cakung, Jakarta

East Jakarta Modern Land Realty 310
tower) Garden City
South Quarter Residence TB Simatupang South Jakarta Intiland 336
Arumaya Residence TB Simatupang South Jakarta Astra Land 262
Jl. Karang Indah,

Apple Residence 3 South Jakarta PT Diamond Land Development 530
Lebak Bulus
2024
Solterra Place (Tower Suites) Pejaten South Jakarta Waskita Realty 521
Branz Mega Kuningan Mega Kuningan CBD Tokyuland 480
continued
6
continuation
The Premiere MT Haryono -

Jl. MT Haryono East Jakarta Adhi Karya 390
LRT City MT Haryono
LRT City Ciracas - Urban Jl. Pengantin Ali,

East Jakarta Adhi Karya 1087
Signature Ciracas
The Newton 2 at Ciputra

Jl. Karet Sawah CBD Ciputra 624
World 2
South Quarter Residence

TB Simatupang South Jakarta Intiland 336
(Tower 2)
B Residence Grogol Jl. Daan Mogot 79 West Jakarta MGM Propertindo 252
Vittoria Residence (Tower C) Jl. Daan Mogot West Jakarta PT. Duta Indah Kencana 312
The Veranda @ Lebak Bulus

Lebak Bulus South Jakarta Pulau Intan & Nishitetsu 178
(Tower Jimbaran)
The Veranda @ Lebak Bulus

Lebak Bulus South Jakarta Pulau Intan & Nishitetsu 192
(Tower Ubud)
Asthana Kemang (Tower Jl. Ampera Raya

South Jakarta PT. Synthesis Development 362
Sadewa) No.17
Dharma Tower Apartment Jl. Dharmawangsa South Jakarta PT Dharma Tatemono Property 72
Jl. Sinabung Raya

The Padmayana South Jakarta Adhi Karya 145
No.58
2025
Jakarta Setiabudi International & Swire

Savyavasa (3 Towers) Jl. Wijaya II South Jakarta 431
Properties
Apple Residence 5 Pejaten Barat South Jakarta PT Diamond Land Development 400
Mitsubishi Estate Group, Duta Putra

The Okura Residences Jl. Gatot Subroto CBD 29
Land, Rizki Bukit Abadi
Kebayoran Apartment (was

Jl. Raya Ulujami South Jakarta Karya Cipta Group 344
Selatan 8) (Diamond Tower)
Antasari Place (was 45

Antasari South Jakarta Prospek Duta Sukses 980
Antasari) (Tower 1)
continued
7
continuation
Antasari Place (was 45

Antasari South Jakarta Prospek Duta Sukses 621
Antasari) (Tower 2)
Sinar Mas Land, Mitsubishi Estate

Kizo Residence Jl. Fatmawati Raya South Jakarta 426
Group
Sakura Garden City (Tower

Jl. Bina Marga No.88 East Jakarta PT Trivo Group and Daiwa House 1100
Dahlia)

Nakula) No.17
2026
Cleon Park Apartment (South Cakung, Jakarta

East Jakarta Modern Land Realty 310
towers) Garden City
Gayanti City Jl. Gatot Subroto CBD PT Buana Pasifik International 174
Sedayu City (Tower Darwin) = Jl. Pegangsaan Dua

North Jakarta Agung Sedayu 936
Belum ada nama Raya

Arjuna) No.17
IFC Residence Jl. Jendral Sudirman CBD Keppel Land 451
JKT Living Star (5 towers) Jl. Lapangan Tembak East Jakarta PT Sindeli Propertindo 3106
Fatmawati City Center (2

towers)
Source: Colliers
8
Ferry Salanto Hern Rizal Gobi
62(21) 3043 6730 62(21) 3043 6727
Ferry.Salanto@colliers.com Rizal.Gobi@colliers.com
About Colliers
Legal Disclaimer
Semi Annual | Expat Housing | Jakarta | 4 January 2023
Approach a recovery
As Indonesia continues to recover from Covid-19, a were more willing to accept those who wanted to rent
large number of expats entered the country from June for at least a year, just as it had been prior to the
to September. As a result, the number of inquiries for pandemic. As a result, lease terms returned to long-
expat housing increased, with twice as many deals term and tend to be yearly, around 1-2 years,
closed as the previous semester, though this particularly for high-demand properties such as
decreased in December due to the holiday season. Atmaya Residence and Executive Paradise.
This semester appears to have seen no new housing
To summarise, this semester has had the best
complexes, but there has been a slight increase in the
performance so far during the Covid-19 era, as
number of standalone houses.
evidenced by high demand and full tenanting of
Because of the presence of foreign companies housing complexes. We would like to emphasise that
handling projects in Indonesia, such as the KCJB, LRT, this year was significantly better than last year, as
pharmacies, and automotive, this semester's expats 2021 was a very concerning year for the market. We
were mostly from Asia, specifically Korea, India, and expect the market to return to normalcy in the coming
China. They mostly arrived as singles or couples year, as the government plans to end the restrictions
without children and they prefer to live in South on community activities (PPKM) in Indonesia at the
Jakarta, which is filled with other expats. We have also end of the year.
noticed that expats prefer housing complexes that are
modern and minimalist in design, newly built, and
well-maintained. Despite the fact that South Jakarta is
the most popular expat housing location, we are
starting to see 5–10% of expats, mostly teachers, in
areas around Alam Sutera, BSD, and Bintaro because
they are near international schools. On the contrary,
the rise of public transportation, such as the MRT,
does not appear to be a decisive factor in expat
demand to live nearby, as expats continue to prefer
private vehicles, particularly cars.
In 2022, we saw that companies’ budgets remained
stable when compared to the previous year.
Furthermore, even during the pandemic, the budgets
of governments or embassies do not appear to be
affected. As the market began to recover, landlords
1
Expatriate housing rental rates
Offering rental Offering rental

rate/unit rate/unit
Size (in USD/month) Size (in USD/month)
Housing by area Housing by area
(sq m) (sq m)
Min Max Min Max
Menteng continuation
4 – 5BR 500 - 1,200 4,000 10,000 Cilandak
Kuningan
4BR Townhouse/
300 - 700 3,000 4,500
complex
4 – 5BR 500 - 900 4,000 8,000
Pondok Indah 3BR + Study 300 - 600 3,500 5,500
4 – 5BR 450 – 1,000 3,500 8,000 4 – 5BR 450 - 750 3,500 5,500
Kebayoran Baru Cipete
4 – 5BR 600 - 1,500 3,500 10,000 3BR Townhouse/

200 - 300 3,500
complex
3 – 4BR Townhouse/
250 - 700 3,000 4,500
complex 4BR Townhouse/
400 - 700 3,500 6,000
complex
Permata Hijau, Simprug
3BR 300 - 500 2,500 3,000
4 – 5BR 400 - 1,500 3,500 10,000
4 – 5BR 400 - 800 3,500 4,500
3 – 4BR Townhouse/
220 3,500 Pejaten
complex
Kemang 3BR Townhouse/

400 - 600 3,500 4,000
complex
4BR Townhouse/
400 - 700 3,000 4,500 4BR 500 - 900 3,500 5,500
complex
3BR 400 - 750 3,000 4,500
4 – 5BR 550 - 1,000 4,000 5,500
continued
2
Apartment rental rates in several expatriate areas
Price (USD) Price (USD)

Apartment by Size Apartment by Size
area (sq m) area (sq m)
Unserviced Serviced Unserviced Serviced
Sudirman continuation
2BR 106 - 257 2,000 – 3,000 3,600 – 5,000 Kebayoran Baru
3BR 156 - 500 2,700 – 5,000 3,700 – 5,300 2BR 140-203 3,200 - 4,300
Menteng 3BR 243 - 302 4,500 - 6,000
8,000 -
2BR 90 - 142 1,500 – 2,500 2,600 – 4,000 4 – 5BR 400 - 500
10,000
3BR 124 - 213 3,350 – 5,000 5,200 Permata Hijau, Simpruk
4BR 319 17,000 2BR 105 - 115 3,100 - 3,150
Kuningan 3 – 4BR 165 - 300 2,700 - 4,000 3,350 - 3,400
4,500 -
2BR 120 - 145 2,500 – 3,500 3,150 – 5,500 4 – 5BR
12,000
3BR 157 - 323 3,000 – 4,500 3,450 – 5,500 Kemang
4BR 440 5,500 – 7,000 3BR 165 - 303 2,500 - 4,500
4,500 –
4 – 5BR Cilandak
12,000
Pondok Indah 3 – 4BR 262 - 300 3,450 - 5,000
2BR + 1Study 117 - 190 2,500 – 3,000 3,500 – 4,200 Cipete
3BR 190 - 455 2,800 – 3,500 4,000 – 5,400 3 – 4BR 220 - 295 4,000 - 6,000
4 – 5BR 285 - 455 3,500 – 5,000 5,650 – 6,400 Pejaten
continued 1 - 3 Br 70 - 191 1,500 - 3,000
Source: Colliers
3
Ferry Salanto Hern Rizal Gobi
62(21) 3043 6730 62(21) 3043 6727
Ferry.Salanto@colliers.com Rizal.Gobi@colliers.com
About Colliers
Legal Disclaimer
Quarterly | Retail | Jakarta & Greater Jakarta | 4 January 2023
Retail, which is capable of pivoting and

changing during a crisis, continues to
weather the pandemic

As more pandemic restrictions were lifted, foot traffic increased. More stores are opening. With long end-of-year
holidays, landlords are expected to maximise the number of visitors to the malls. Nevertheless, the mall owners have
yet to find reason to increase occupancy cost and remain relatively stable in 2022.
The retail sector is evolving, and its future trajectory should not be limited by transactional requirements to meet
human needs. Businesses must be willing to abandon outdated assumptions and embrace the insights and
technologies that will drive success in the post-pandemic world.
To thrive, landlords and retailers must tap into emotion and human connection, provide customer convenience and be
environmentally sustainable. To combat rising labour and material costs, retailers may find innovative ways to continue
their brick-and-mortar expansions. More retail pop-ups, subleased spaces within department stores, and joint ventures
to establish a physical presence with little capital investment.
2023–2025
Physical retail will remain relevant while being optimised
for quite some time. The return to work and increased
socialisation will fuel growth in clothing and footwear
Demand 13,073 sq m -58,154 sq m 118,800 sq m
spending.
During the period of 2023-2025, the cumulative supply
is expected to grow at a rate of about 2% per year. To
cut costs, landlords may consider whether to build new
properties, renovate existing ones, or even postpone 0 sq m 39,600 sq m 155,155 sq m
Supply
construction entirely.
Annual Avg Growth

QOQ/ YOY/ 2023–2025/
Retail rent growth is expected to accelerate in the short-
term due to increased consumer spending and 0.16% 0% 6.17%
economic recovery. However, depending on mall
Rent
performance, rent increases will be gradual, beginning IDR474,533 IDR474,533 IDR567,299
at 5% annually.
Retail demand is expected to increase as the economy 0.06 0.01 -0.19

recovers. However, rapid supply growth will put
significant pressure on the average vacancy rate to
Vacancy 30.06% 30.99% 30.42%
remain at 32% between 2023 and 2025.
Newly opened malls will have a significant impact on 0.07% 3.6% 2.83%
service charges. Nonetheless, the average service
Service charge is expected to rise at a reasonable rate of 2–3%
charge per year, during the 2023–2025 period. IDR133,666 IDR133,666 IDR145,351
1
No new mall openings in Jakarta More stores are open during the
helped to stabilise the occupancy holiday season to encourage
rate shoppers to keep spending
Annual supply Occupancy rate
Jakarta Greater Jakarta Jakarta Greater Jakarta

200,000 90%
160,000
80%
120,000
80,000
70%
40,000
0 60%
2023E
2024E
2025E
2016
2017
2018
2019
2020
2021
2022
2023E
2024E
2025E
2016
2017
2018
2019
2020
2021
2022
Source: Colliers Source: Colliers
As a result of the slowing progress of construction, The number of visitors to shopping malls is increasing,
the completion of several malls will be delayed. With particularly at those malls with a high occupancy rate.
no supply, the cumulative supply in Jakarta remained The situation makes both retailers and landlords
at 4.86 million sq m in 2022. Green Walk Mall (located appear optimistic about the year-end holidays in 2022.
within the Grand Dhika City complex in Bekasi) added
With more people freely entering the mall, landlords
new retail supply in the Greater Jakarta area in Q4
can confidently hold events with themes that
2022. The mall’s completion brought the total supply
correspond to current conditions. In addition to the
to nearly 3 million sq m in 2022.
holiday theme, the landlords present sports and
At least nine shopping centres are currently under cultural themes to attract more visitors.
construction and are expected to be completed by
As a result, more tenants opened stores in Q4 2022,
2024. These projects will add approximately 460,000
with F&B retailers, such as beverage and bakery
sq m of new retail supply, with approximately 70% of
outlets, leading the way. Besides that, local cosmetic
the total located in the Greater Jakarta area. Three
and beauty brands are expanding by opening
large-scale shopping malls are scheduled to open in
permanent or exhibition stores. Sportswear and
2023: Lippo Mall East Side (within the Holland Village
footwear brand retailers expanded as well.
complex), Pakuwon Mall Bekasi and Bintaro Xchange
Furthermore, a unique multi-brand outlet from Korea
2.
opened its first outlet in Indonesia, selling a variety of
merchandise.
2
As new retailers gained confidence, the average According to the Indonesian Shopping Center
occupancy rate in Jakarta reached 68.9% in Q4 2022. Management Association (APPBI), after experiencing a
While this was relatively stable in comparison to Q3 three-year income deficit, most shopping malls are
2022, current occupancy was down 2% from 2021. likely to begin raising occupancy costs starting in 2023.
With additional new supply, the average occupancy Nonetheless, the shopping mall owners’ proposed
rate in the Greater Jakarta area was 68.9% in Q4 2022, rent increases appear to be facing opposition from
a 1% decrease from Q4 2021. The rate of retail space retailers, particularly those whose sales performance
absorption is expected to increase, but additional is still affected by the pandemic.
supply will reduce occupancy from 1% up to 2% in
Aside from that, the resumption of economic activity
2023, both in Jakarta and the Greater Jakarta area.
during the endemic phase will result in overall
improvement. In general, the outlook for Indonesia's
economy next year is quite positive. Landlords have
Rental rates remained relatively projected that shopping centre market conditions in
2023 will be slightly better than that in 2022. However,
stable in 2022, with adjustments rising inflationary expectations may limit consumer
likely to be necessary in the spending. As a result, the projected rental growth will
be in the middle of the demand spectrum for
following year shopping mall owners and retailers.
Average asking rental rates Aside from operational costs, such as the use of air
conditioning and electricity, another factor to consider
Jakarta Greater Jakarta when setting a service charge fee is labour expenses.
IDR750,000
For 2023, the government has set a new regional
minimum wage. This will also act as a catalyst for
IDR600,000 landlords to increase their service charge. Service
charges in Jakarta and the Greater Jakarta area were
IDR450,000 recorded at IDR149,166 and IDR118,166, respectively,
in Q4 2022, remaining relatively stable in comparison
IDR300,000 to 2021.
IDR150,000 There was almost no increase in mall rental rates

between 2020 and 2021. In 2022, a small number of
IDR0 malls raised rental rates and service charge fees, but
this was limited to malls with high foot traffic.
2023E
2024E
2025E
2016
2017
2018
2019
2020
2021
2022
Currently, the mall visit rate is quite high, with an

average rate of around 90% of the pre-pandemic
Source: Colliers
period, and some destination malls are exceeding this
figure. It is estimated that a large number of malls will
For approximately three years during the pandemic,
increase their total rental costs in 2023; this does not
the YOY performance of 2022 rent was more stable
include malls whose performance has not recovered,
compared to previous years. Given that shopping
particularly trade centres (strata-titled shopping
centre occupancy rates and visitor numbers are close
centre). The main reason for this increase expectation
to pre-pandemic levels, incentives are no longer being
is that many malls experienced deficiencies
provided. The average rental rate in Jakarta was
throughout 2020–2021 and early 2022 because many
recorded at IDR 566,095 in Q4 2022, with most mall
malls provided tenants with rental rate concessions
owners confidently maintaining occupancy costs.
and service charges over a period of time. The
Meanwhile, newly opened shopping malls had an
amount of this increase, however, will be insignificant
impact on the Greater Jakarta area’s average rental
as it is still in the single digits, and the minimum is still
rate, which was IDR 380,961 in Q4 2022, down nearly
within the inflation rate range. For lease renewals, the
1% from Q4 2021.
inflation rate is likely to be used as a reference for the
number agreed upon by the landlord and retailer.
However, at the published rate level or rental rate for
newly entered tenants, this increase could be around
10%, which is higher than the inflation rate.
3
In addition to the previously mentioned main causes, Service charge
the energy component and the minimum regional
wage are the two most important factors influencing Jakarta Greater Jakarta
operational costs. Indeed, a mall does not currently IDR200,000
benefit from energy subsidy tariffs, so energy costs
have no direct impact on mall operations; however, IDR150,000
vendors and contractors for repairs and maintenance
will raise costs, increasing operational expenses in
IDR100,000
addition to the labour costs, which have also been
raised for next year.
IDR50,000
We anticipate that landlords and retailers will take
advantage of the momentum of 2023 to be more
IDR0
aggressive, realising that 2023 is the best time to
2023E
2024E
2025E
2016
2017
2018
2019
2020
2021
2022
rebound before the political year begins in 2024. If it
waits again, it will be too late for the retail business to
move forward. There is no need to worry too much Source: Colliers
about the slowdown because if business activities do
not move so that if there is a slowdown, it will instead
be a boomerang for overall economic growth.
Appendix
Under construction projects
NLA
Shopping Centre Project Location Region Developer
(sq m)
Jakarta
2023
Lippo Mall East Side (within

Cempaka Putih Central Jakarta Lippo Karawaci Tbk 44,000
Holland Village)
2024
Menara Jakarta Shopping

Kemayoran Central Jakarta Agung Sedayu Permai 90,360
Mall
continued
4
NLA
Shopping Centre Project Location Region Developer
(sq m)
continuation
Greater Jakarta
2023
OmotesandoLifestyle Mall
Bintaro Tangerang Lippo Karawaci Tbk 7,605
(Embarcadero)
Bintaro Xchange 2 Bintaro Tangerang Bintaro Jaya 51,000
Pakuwon Mall Bekasi Bekasi Bekasi Pakuwon Group 40,000
2024
Aeon Mall Deltamas Cikarang Bekasi AEON & Deltamas 90,000
Cibinong City Mall 2 Cibinong Bogor Puri Wahid Pratama 32,500
2025
Metrostater Depok Margonda Depok Andyka Investa (Trivo Group) 30,000
Living World at Kota Wisata Cibubur Bekasi Sinarmas Land 80,000
Source: Colliers
5
Ferry Salanto Eko Arfianto
62(21) 3043 6730 62(21) 3043 6726
Ferry.Salanto@colliers.com Eko.Arfianto@colliers.com
About Colliers
Legal Disclaimer
Quarterly | Hotel | Jakarta | 4 January 2023
Achieving good performance in 2022

Jakarta’s hotel industry is thriving once again. Business activities have resumed, MICE activities have begun
to pick up steam, and offline activities are becoming more prevalent, owing to the resumption of
exhibitions, sports competitions and music concerts. Of course, this is a breath of fresh air for Jakarta’s
hotel industry.
If conditions remain favourable, the hospitality industry will continue to improve in the future. This is due
not only to the control of Covid cases, but also to national and global economic conditions.
2023–2025
Through 2025, new hotel supply will be plentiful

and diverse. 282 rooms 502 rooms 463 rooms
Supply
Annual Avg Growth

QOQ/ YOY/ 2023–2025/
Occupancy will rise because the market is more 2.5% 10.6% 12%
stable, but the rise will not be as dramatic as in the
Occupancy past. 60.9% 60.9%
1.3% 19.4% 3.9%

Room rates will continue to rise, making up for
rates that fell behind during the pandemic.
Room rate USD56.8 USD56.8
1
Supply Performance
Because of improved market conditions, many hotel Monthly average occupancy rate (AOR)
projects have resumed construction. The supply of all
types of new hotels is expected to increase beginning 2018 2019 2020 2021 2022
in 2023. Their locations are dominated by the Central
100%
Jakarta, CBD and West Jakarta areas. Meanwhile, two
hotels, Park Hyatt and St Regis, opening in 2022. Both
80%
are 5-star hotels located near Jakarta’s business
district. With this new supply, the total room supply 60%
now stands at 44,855 rooms.
40%
Annual room supply
20%
3-star 4-star 5-star
1,000
0%
Aug
Jan
Feb
Dec
Nov
Jun
Jul
Oct
Sep
Mar
Apr
May
800
600 Source: STR
400 Monthly average room rate (ARR)
200 2018 2019 2020 2021 2022
0 USD100.00
2023E
2024E
2025E
2018
2019
2020
2021
2022
USD80.00
USD60.00
Source: Colliers
USD40.00
It is expected that 4-star and 5-star hotels will receive
new supply in 2023. It is expected that there will be USD20.00
more supply in the 3-star category in 2024. The
supply of 3-star hotels experienced a decrease USD0.00
Aug
Jan
Feb
Dec
Nov
Jun
Jul
Oct
Sep
Mar
Apr
May
between 2020 and 2022. This is very likely due to the

fact that the hospitality industry experienced a
downturn at the start of the pandemic and lost many Source: STR
guests. As a result, hotel owners were forced to close

their hotels because there were no guests and they
were unable to compete with 4-star and 5-star hotels.
2
Number of foreign tourists arrival to Indonesia In terms of performance, monthly occupancy has
through Soekarno-Hatta International Airport by increased while ADR has decreased; however, overall
month performance in 2022 has increased significantly when
compared to the previous two years. The decrease in
2018 2019 2020 2021 2022 ADR was caused by hoteliers offering group discounts
750,000 in advance. Some hotels continue to prioritise
pursuing occupancy over pursuing price. Given the
600,000 recent positive trend, it is expected that hoteliers will
begin to raise room rates in the coming years to catch
450,000 up with the rates of the previous two years.
300,000
150,000
0
Aug
Jan
Feb
Dec
Nov
Jun
Jul
Sept
Oct
Mar
Apr
May
Source: Central Bureau of Statistics
The increase in the number of foreign tourist arrivals

is directly proportional to the increase in hotel
occupancy rates, as was witnessed from April to July
2022, after which foreign tourist visits became more
volatile, though not as dramatically as in previous
months, after which foreign tourist visits became
more volatile, though not as dramatically as in
previous months.
The rise in the number of offline activities towards the
end of the year is a breath of fresh air for hoteliers,
especially for activities that involve a large number of
people, such as music concerts, conventions and
exhibitions. Even if the event was not held at the hotel,
hotels located nearby became more crowded as many
guests chose to stay nearby.
Furthermore, activities such as meetings, seminars,
gatherings and so forth, both organised by the
government and corporations, are increasingly being
held in hotels. In addition, in advance of the G20
preparations, many pre-G20 activities were held in
several cities, one of which was Jakarta. These
activities brought new life to the Jakarta hotel industry
Another interesting factor is that with the loosening of
social restrictions, the room usage capacity can reach
80% or more or higher; as a result, many weddings
with large groups have begun to be held in hotels.
After a two-year hiatus, hotels will host New Year's Eve
celebrations. Since the end of Q3 2022, promotions
for Christmas and New Year’s events were heavily
promoted. Hoteliers are more confident with current
conditions in the sense that the spread of Covid-19
has begun to be controlled, making everything more
stable.
3
Appendix
New supply in 2022
STR Equivalent Opening

Hotel Name Location Region #Rooms
Rate Time
5-star
Park Hyatt Hotel Luxury Kebon Sirih Central Jakarta 220 Q3 2022
St Regis Luxury Rasuna Said CBD 280 Q4 2022
Source: Colliers
New pipeline
STR
Opening
Hotel Name Equivalent Location Region #Rooms Project Status
Time
Rate
3-star
Sam Ratulangi
Under
Menteng Boutique Undefined yet Menteng Central Jakarta 120 2023
construction
Hotel
Fairfield Slipi Upper midscale Slipi West Jakarta 250 Documentation 2025
4-star
Under
Park Royal Hotel Upscale MH Thamrin Central Jakarta 171 2023
construction
Puri Under
Veranda Puri 2 Undefined yet West Jakarta 2025
Kembangan construction
5-star
Movenpick Jakarta Under

Upscale Pecenongan Central Jakarta 253 2023
Pecenongan construction
Under
Pan Pacific Jakarta Upper upscale MH Thamrin CBD 157 2023
construction
Under
Waldorf Astoria Luxury MH Thamrin CBD 183 2023
construction
Source: Colliers
4
Ferry Salanto Nurul Yonasari
Senior Associate Director | Senior Research Executive |
Research | Jakarta Research | Jakarta
62(21) 3043 6730 62(21) 3043 6728
Ferry.Salanto@colliers.com Nurul.Yonasari@colliers.com
About Colliers
Legal Disclaimer
Quarterly | Industrial Estate | Greater Jakarta |
4 January 2023
High-tech companies continue to propel

the industrial sector

The industrial sector is still promising for industrial estate developers, as its sales performance continues to
show an upward trend. Despite not yet matching the achievements of 2019, this sector had demonstrated
its resilience during the pandemic, which was difficult for other property sectors to do. In this sector,
companies that continue to expand, as well as other sectors that continued to grow during this difficult
period, are strong enough to weather the pandemic storm. The growth of data centre companies is an
indirect reaction to the development of online businesses, as well as an indication of the fact that people
these days cannot live without gadgets. Similarly, the automotive high-tech industry is responding to the
demands of an increasingly modern era.
2023–2025
Q4 land absorption was the highest in 2022. We

anticipate higher sales volume opportunities in
Demand 2023, primarily driven by expanding sectors such
73.05 Ha 212.74 Ha 282.6 Ha
as logistics, high-tech automotive, data centres,
food, and chemicals.
The industry's land stock is still being maintained

and can anticipate a high demand for land.
Supply Developers will continue to develop land that is 94 Ha 374.7 Ha 217 Ha
already in the pipeline.
Annual Avg Growth

QOQ/ YOY/ 2023–2025/
Land prices in some areas are likely to adjust,

particularly in areas that consistently book
Price
transactions every quarter or year, while available USD189.08 USD189.08 USD195.31
land stock is becoming increasingly limited.
1
A sufficient land stock to meet the only option because the area between the provinces
of West Java and Central Java has become a new
anticipated increase in demand industrial centre that has attracted industry players,
particularly those that absorb a lot of labour due to its
Several regions accelerated the development of raw lower wage benchmark compared to that in the
properties into ready-to-build land in 2022. We greater Jakarta area and, of course, the availability of
recorded a total of 74 hectares of land prepared in large parcels of land. Similarly, in the western region
2022 in the eastern part of Greater Jakarta, which of greater Jakarta, particularly in Serang, there are
includes Bekasi and Karawang. Meanwhile, in the currently a lot of new properties to be developed, as
western region, particularly in Serang, two industrial well as several new industrial estates.
estates are still developing 300 hectares of land into
ready-to-build areas. This began in 2022 and is still
ongoing. In the south, as Bogor is no longer being
developed as an industrial area, development is now Transaction volume is in line with
focusing in Sukabumi. Sukabumi's new Cikembar expectations
Industrial Estate is still in the planning stages.
The Greenland Industrial Estate (GIIC) continues to
have the most land sales in Q4. Previously, large land
Industrial land stock status in some active and
transactions were mostly for data centres, but the
future industrial Estates
largest sale in Q4 came from an electronic household
Bogor - Sukabumi Tangerang appliance company, which purchased 19.2 hectares.
Karawang Bekasi With this transaction, GIIC secured the largest
Serang purchase in 2022, totalling nearly 60 hectares. This
5,000 aided total industrial land sales in the greater Jakarta
Hectares
4,000 area, accounting for 28% of the total sales of 212.74

hectares in 2022.
3,000
2,000 One of the relatively large deals came from KNIC in
Karawang, an industrial estate owned by Chinese
1,000
company CFLD. By the end of 2022, KNIC had booked
0 a fairly large transaction of around 13.9 hectares from
Existing Stock Remaining Potential Land two deals in which a Korean chemical supplier
Unsold Land To Be company purchased 12.9 hectares of land as a new
Developed
investment, which would anchor tenants in the area
that support the electric car industry. The remaining 1
hectare was purchased by a chemical aromatherapy
Source: Colliers Indonesia company from China as part of an expansion of an
existing factory.
Land availability is not a critical issue for companies In the remaining months of 2022, the petrochemical
looking to expand their operations in industrial areas, and chemical-related industries were still actively
except for a few preferred estates in Bekasi. conducting 12 hectares of transactions, giving KIEC
Furthermore, the greater Jakarta area is no longer the the largest total transaction after GIIC in 2022. Still in
2
Serang, Modern Cikande finished the year with solid In terms of lease transactions, we noted a lease
sales of approximately 3.7 hectares. The largest land agreement between KBI, Besland Pertiwi, and a local
purchase was by a local rubber processing company food distribution company. The company signed a
for the tyre industry, which bought approximately 2.4 large lease agreement for approximately 3 hectares of
hectares of land, followed by a purchase of 1.07 distribution warehouse space.
hectares by a chemical company from Taiwan
Another lease transaction was recorded in Bogor. A
(expansion of an already operating factory) and the
dairy product and derivatives manufacturer leased a
remaining 0.28 hectares by a local company making
7,000-sq m warehouse on nearly 1.2 hectares of land
filters for the industry.
for its production materials.
This quarter, KIIC closed the year with a sizeable sale
Total industrial land transactions, including land sales,
of 7.87 hectares, bringing the total sales booked in
warehouse leases, and industrial land leases, totalled
2022 to more than 24 hectares. Of these 24 hectares,
212.74 hectares. This figure is slightly higher than last
surprisingly, data centre companies accounted for
year's total sales of 210.47, indicating that since the
approximately 72% of total land sales booked. To
pandemic in 2020, sales in 2022 were the highest,
recapitulate, in 2022, data centre companies in the
though the numbers are not yet significant despite
greater Jakarta area made a total transaction of 63.17
improved market sentiment. This upward trend is
hectares. This largely outnumbers the data centre
expected to continue, with mainstay sectors such as
sector's total land sales of 39.6 hectares in 2021 and
data centres, high-tech automotive, logistics, and
20.2 hectares in 2020.
petrochemicals providing support.
The need for logistics remains, and logistics
companies continue to expand. Land purchases from Land absorption in Q4 2022
the logistics industry sector totalled 3.2 hectares in
Bekasi Fajar. Furthermore, the plastic industry GIIC (Greenland)
purchased land in this area, bringing the total land Karawang New…
sales in Bekasi Fajar to 5.2 hectares in Q4. Still in Krakatau Industrial…
Bekasi Regency, Jababeka reported that the food KIIC
industry sector absorbed 80% of the total 3.9 hectares, Bekasi Fajar
while the remaining 20% was taken by other Jababeka
industries such as the steel industry, machinery, Modern Cikande
building materials, and packaging/labelling. Kota Bukit Indah…
CCIE
Despite its trifling business this quarter, Suryacipta Suryacipta
has been consistent in reporting transactions. The Griya Idola
tenant in the chemical sector, which is already
Sentul Industrial Estate
operational, expanded by 1 hectare in this quarter.
Artha Industrial Hill
Artha Industrial Hills (AIH) did not report as many Kawasan Industri…
transactions as in the previous quarter, but this is
0 5 10 15 20 25
sufficient to demonstrate that demand for land in
Karawang remains strong. This quarter, AIH recorded hectares
land sales totalling 5,500 sq m to a heavy equipment Source: Colliers Indonesia
company for warehouse purposes and a
telecommunication facilities company (0.55 hectares).
Griya Idola saw sales of 6,700 sq m for several
companies in Q4. Some commercial areas were taken
up for hotel development.
In the south, a company overseeing two industrial
estates in Bogor and Sukabumi also reported sales
this quarter, respectively Kawasan Industri Sentul (KIS)
and Kawasan Industri Cikembar (KIC). KIS sold
approximately 6,000 sq m of land to two cosmetics
and e-cigarette (vape) companies. While KIC sold
approximately 2,475 sq m to individual Chinese
buyers.
3
Land absorption in 2022 Annual industrial land absorption
GIIC (Greenland) Bogor - Sukabumi Tangerang Karawang

Krakatau Industrial… Bekasi Serang
KIIC 400
Karawang New…
Hectares
Bekasi Fajar 300
Modern Cikande
Jababeka 200
Artha Industrial Hill
Suryacipta 100
CCIE
Griya Idola 0
Kota Bukit Indah…
2016
2017
2018
2019
2020
2021
2022
Sentul Industrial Estate
Kawasan Industri… Source: Colliers Indonesia
0 15 30 45 60 75
hectares
Source: Colliers Indonesia
Types of active industries involved in the transactions 2022

Heavy
Equipment
0.19% Construction/ Textiles
Packaging Engineering 3.43%
1.60% 3.24%
Tyres Building Material
1.12% 1.06%
Data Centre
29.69%
Cosmetics
0.25%
Medical/Health
0.42%
Developer
Logistics/ Technology 0.12%
Warehousing Others 0.94%
14.32% 4.61%
Automotive
4.37%
Manufacturing Food
3.15% 5.43%
Consumer
Goods
Pharmaceutical Plastics 0.01%
Oil & Gas Chemicals 0.24% 0.94%
Related 17.95% Electronics Steel-related
0.03% 9.97% 0.09%
4
Focus on the sales goal; the price Rental rates for land and
will follow warehouses will be adjusted next
By the end of 2022, two industrial estates in Serang year
and one in Bekasi had adjusted land selling prices by
an average of 7.5-17.7% or 11.2%. When referring to Land rental rates in the Bogor area are likely to
the three estates' sales performance, this is increase by 5% in 2023, possibly due to limited land
reasonable given the consistency of each estate's impeding the growth of industrial land in Bogor. This
sales and the increasingly scarce land stock. increase is deemed reasonable because rental rates
for industrial land and buildings in Bogor have not
The planned increase in land prices is most likely to changed in recent years. Land rents in Bogor are
occur in areas where transactions have been regularly currently around IDR6,500/sq m/month. Meanwhile,
recorded and where land supply is becoming land rental rates in Karawang range from
increasingly limited. The expected increase is around IDR13,500/sq m/month to IDR50,000-55,000/sq
5% by 2023, but given the weakening macroeconomic m/month.
conditions, this adjustment will be determined by
factors that include the type of industrial sector that
enters and how much land area was taken.
To date, maintenance costs have
The chart we presented reveals that prices have
decreased from 2021 to 2022, except in Serang. remained stable
Because some industrial estates are still using US Throughout 2022, there has been no change in
dollars, we convert the selling price of land to US service charge rates. In the future, industrial estate
dollars. And, as the local currency weakens against the managers are likely to focus more on adjusting the
US dollar, the average price in this currency appears selling prices of land.
to be declining, despite the fact that prices in general
are relatively stable and that some areas dealing in
Greater Jakarta industrial maintenance costs
rupiah and performing well actually increased prices
in 2022. The graph for Serang appears to be rising, as Bogor - Sukabumi Tangerang
the increase in rupiah is significant at 12.6% year on Karawang Bekasi
year. Serang
USD0.09
Greater Jakarta industrial land prices
USD0.06
Bogor - Sukabumi Tangerang
Karawang Bekasi
Serang USD0.03
USD300.00 USD0.00
2016
2017
2018
2019
2020
2021
2022
USD200.00
USD100.00 Source: Colliers Indonesia
USD0.00
2016
2017
2018
2019
2020
2021
2022
5
Industrial Land Prices and Maintenance Costs (in USD equivalent)
Land Price (/sq m) Maintenance Cost (/sqm/month)

Region
Lowest Highest Average Lowest Highest Average
Bogor - Sukabumi USD192.76 USD353.40 USD273.08 USD0.06 USD0.07 USD0.07
Tangerang USD179.91 USD240.96 USD183.13 USD0.03 USD0.08 USD0.06
Karawang USD150.00 USD155.00 USD154.75 USD0.05 USD0.10 USD0.08
Bekasi USD205.62 USD205.62 USD201.12 USD0.06 USD0.08 USD0.08
Serang USD128.51 USD138.15 USD133.33 USD0.03 USD0.05 USD0.04

Note: IDR 15,563 = USD 1.00
More optimism for 2023

In general, the industrial sector's expansion growth
slowed in Q3 and Q4 this year, particularly when
measured by the rate of new investor growth. The e-
commerce industry is still supporting the industrial
sector, but its growth rate has recently slowed due to
its rapid growth over the last two years. Some large-
scale start-up companies have even reduced the
number of employees and facilities, resulting in a
lower demand for land than in the previous period.
As a result of the protracted Russia-Ukraine war and
sluggish economic activity in investors' home
countries, there is little new investment activity from
overseas into Indonesian industrial estates. However,
we continue to see business expansion activities from
existing tenants in the industrial estate involving the
expansion of factory buildings and warehouses.
Due to saturated conditions in the home country, as
well as higher labour costs and limited land, we see
the potential for the garment industry to expand or
relocate its operations from certain ASEAN countries.
Industries that have experienced the aforementioned
will most likely enter Indonesia.
6
Ferry Salanto
Senior Associate Director |
Research | Jakarta
62(21) 3043 6730
Ferry.Salanto@colliers.com
About Colliers
Legal Disclaimer

Q4 2022 ColliersQuarterly Jakarta

Uploaded by

Copyright:

Available Formats

Q4 2022 ColliersQuarterly Jakarta

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Q4 2022 ColliersQuarterly Jakarta

Uploaded by

Copyright:

Available Formats

Quarterly | Office | Jakarta | 4 January 2023

Investors focus on fundamentals and

Insights & recommendations

The election in 2024 is expected to slow office

No new projects will be launched until the end of

Source: Colliers. Note: IDR15,563 = 1 USD.

Development pause and Annual supply

completion delays significantly CBD Outside the CBD

and higher building material prices. Buildings already

IDR160,000 Outside of the CBD, the average rental rate was

occupancy rates may begin to consider increasing

Selling price We anticipate that political conditions will improve

Rajawali Place (St Regis

Autograph Tower (within

Luminary Tower (within

Jakarta MORI Tower Sudirman MORI Building 96,000 For Lease

Indonesia-1 North Tower Thamrin Media Group 79,486 For Lease

Indonesia-1 South Tower Thamrin Media Group 72,814 For Sale

Outside the CBD

Sun Tower (The Owner Dharmawangsa,

Menara Jakarta Office Kemayoran, Central

2023: Walking into headwinds

Insights & recommendations

Overall, sales in 2022 have been slightly better

In 2022, 1,484 units were completed. This is only

Annual Avg Growth

Source: Colliers. Note: IDR15,563 = 1 USD.

Completed supply will be available for East Jakarta CBD

The total supply of strata-title apartments has reached

finished by next year. As a result, the expected supply

such as the Fatmawati MRT station and the Ciracas

More sales from existing projects Take-up Rate Apartment Jakarta

As of the end of 2022, the overall take-up rate of

The only catalyst for the property sector came from

This apartment, which was previously managed by

100% CBD South Jakarta (incl. Non-prime area)

Source: Colliers Source: Colliers

Rent has recovered strongly as a result of

Name of Development Location Region Developer #units

57 Promenade Jl. Kebon Melati CBD Intiland 496

Apartment Name Location Region Developer #Units

Aerium Taman Permata Taman Permata PT Itomas Kembangan Perdana

Le' Parc Jl. Thamrin CBD PT. Putragaya Wahana 100

Fatmawati City Center -

The Residences at The St.

Fatmawati City Center -

Sakura Garden City (Tower

Southgate Residence (3rd Jl. Tanjung Barat

Menara Jakarta (Tower

Cleon Park Apartment (North Cakung, Jakarta

South Quarter Residence TB Simatupang South Jakarta Intiland 336

Arumaya Residence TB Simatupang South Jakarta Astra Land 262

Jl. Karang Indah,

Branz Mega Kuningan Mega Kuningan CBD Tokyuland 480

The Premiere MT Haryono -

LRT City Ciracas - Urban Jl. Pengantin Ali,

The Newton 2 at Ciputra

South Quarter Residence

The Veranda @ Lebak Bulus