Q1 2019 ColliersQuarterly Jakarta AllSectors

COLLIERS QUARTERLY OFFICE | JAKARTA | RESEARCH | Q1 2019 | 2 APRIL 2019
Eko Arfianto
Senior Manager | Research | Jakarta
+6221 3043 6726 MARKET STARTS MAKING HEADWAY BUT STILL
CHALLENGING
Eko.Arfianto@colliers.com
2019–23
Summary & Q1 2019 Full Year 2019 Annual Average
Recommendations
 Demand will continue to be propelled by co-
Some deals in Q4 2018 were working operators as well as technology and
media companies. 125,224 sq m 493,775 sq m 482,322 sq m
dragged and finalized in Q1 2019. Demand
Some possible transactions that
involve large space are expected
to occur in 2019.  In 2019 - 2023, around 2.5 million sq m of
The key strategies for landlords space is expected to become new supply in
122,991 sq m 678,520 sq m 497,209 sq m
will focus on offering efficiency Jakarta, around 60% will be in the CBD
Supply
for tenants and agility space in
line with the increasing inquiries  As a result of relatively small amount of 0.2% 0.3% 0.4%
to accommodate flexible leasing supply in 2020-2022, vacancy rate is
tenure. We think that flexibility is projected to reach 13.4% by the end of
the new trend, particularly 16.9% 19.8% 15.9%
Vacancy 2022.
because a lot of companies are 1.3% 6.2% 3.5%
 Average asking rent is projected to increase
thinking in more practical way in by 3.0%-5.5% per annum in conjunction with
deciding their premises. the influx of high quality buildings that offer
243,492 253,055 276, 251
Rent higher rent than the average market.
1.9% 0.3% 0.7%
 We anticipate a moderate growth in price in
2019-2023 primarily because of supply
Price
pipeline in outside the CBD are mainly lower IDR47.7 mio IDR46.7 mio IDR46.4 mio
price buildings.
Source: Colliers International. Note: rents are per sq meter per month and prices are per square meter; USD1 to IDR14,173 as of end-Q1 2019; 1 sq m = 10.76 sq ft
1
SUPPLY WILL DEFLATE NEXT YEAR MAINTAINING OCCUPANCY LEVEL

Jakarta cumulative office supply WILL BE CHALLENGING AMIDST
THE INFLUX OF NEW BUILDINGS
Average Asking Rent & Occupancy
Source: Colliers International
In 2019, Jakarta continues to see a substantial amount of new office space of

around 680,000 sq m, 7.3% larger than in 2018. In the CBD, eight office
buildings are expected to contribute around 360,000 sq m. During Q1 2019,
Sequis Tower (located in Sudirman) became operational, bringing Source: Colliers International
cumulative supply in the CBD to 6.53 million sq m. The amount of annual
supply will ease in 2020 but will inflate in the following year. This will alert Occupancy
the market on the importance of securing committed tenant prior to the The good performance of several office buildings at Sudirman and Gatot
official opening which will be crucial in the competitive market. Subroto during Q1 2019 maintained steady occupancy in the CBD which was
In outside the CBD, we anticipate a total of 315,730 sq m in 2019 contributed register at 82.5%. There is no guarantee for occupancy figure to stabilise along
by eight office buildings including Arkadia Tower G, located at TB Simatupang this year, given the huge supply. We think the office market will continue to
(South Jakarta) that officially operates in Q1 2019. By the end of 2019, total struggle in the remainder of 2019 and will likely drop moderately at 81.5% by
office space in outside the CBD will stay at 3.56 million sq m, increases the end of the year.
almost 10% compared to 2018.
2
New building that officially started operating in Q1 2019 brought the overall Similar trend happened in outside the CBD of which newly operating
occupancy in outside the CBD down by 1% QOQ to 84.0%. With large building at TB Simatupang contributed about 2.1% QOQ increase, making
projected supply primarily in Q3 and Q4 2019, occupancy level is expected the average asking is now IDR196,299. The average asking rent in South
to drop by 3.5% - 4.0% at the end of 2019. Jakarta is now IDR219,394, the highest in outside the CBD. This was mainly
underpinned by the buildings located in TB Simatupang area where average
Tenant market situation will continue and landlords are still demanded to be
rent is registered at IDR222,575.
flexible in accommodating tenant needs. In this tight competition, landlords
are expected to compromise with the rental tariff as well as to be flexible in Two future office buildings in South Jakarta that will meet completion in
providing incentives, such as giving early termination option. 2019 have launched the asking rents above market. These buildings will
contribute to the increase in the average asking rent in outside the CBD by
The agility space concept will likely become a justifiable option for new
4.0%-4.5% YOY.
buildings with high vacancy rate. Flexibility has now becoming the trend for
many companies. Technology & media companies (including co-working
space, e-commerce) are anticipated to absorb office space going ahead. PRICE IS STAGNANT DESPITE
The millennials with come and go characteristic will colour the office
business in Jakarta. Rigid company regulations may become obsolete. For
LIMITED SUPPLY
instance, besides traditional leasing, big corporation will also utilise the
existence of co-working space to support the need for flexibility particularly Asking Prices by Area
when dealing with provisional project.
Rent
After experiencing a downward trend in H2 2018, rent in the CBD increased
2.4% QOQ to IDR 291,140 in Q1 2019. Landlords generally maintained the
asking rent relatively stable during the quarter. In our record, only less than
5% of the current existing buildings in the CBD introduced higher rent
starting by IDR50,000 to 75,000 in Q1 2019. The newly operating office
building also contributed to the overall increase as it offers higher asking
rent than market average.
The general office market has yet to fully recover. The increase in asking rent
does not entirely reflect market improvement because the calculation is
more composed by the vacant space of high quality office buildings offering
high rental rate. The expectation of higher rental figure in the remainder of
2019 will be largely contributed by the operation of future grade A and
Premium office buildings. We estimate average asking rent by the end of Source: Colliers International
2019 will increase modestly by around 4% YOY.
3
The situation of strata-title office market is very much relying on the leasing
market. The traditional demand drivers of strata-title office such as mining,
plantation, oil & gas and other local firms have yet to regain strength in
absorbing strata-title office space.
Selling property remains challenging during this period. In Q1 2019, one
owner is planning to sell new en-bloc office building located at Rasuna Said
with asking price lower than current market price.
Average selling price of strata-title office in the CBD was currently recorded
at IDR53.6 million/sq m. Based on available space, selling price at most of
strata-title office buildings in the CBD were recorded between IDR50 million
and 60 million/sq m.
With supply is projected to be limited, the take-up rate level will go up
accordingly until the end of 2019. Some companies may consider to
purchase office space and to own the property rather than to rent. Strata-
title office buildings that are located at Mega Kuningan and Gatot Subroto
will become choice for buyers particularly because price is lower than in
Sudirman and Thamrin.
In the current tenant market situation, landlords will opt to maintain price
which is now between IDR54 million to 55 million by the end of 2019.
There are a few strata-title office buildings in outside the CBD that
confidently offer price above IDR50 million/sq m mainly for office buildings
that are located in the proximity of the CBD. Average selling price in outside
the CBD (excluding TB Simatupang) is registered at IDR38.9 million/sq m.
Meanwhile, selling price at TB Simatupang is currently IDR28 million to 35
million/sq m.
4
APPENDIX
Office Spaces Offered for Lease

Central Business District (CBD)
New Pipeline
Office building project name Location SGA (sq m) Marketing scheme Progress development
2019
Sudirman 7.8 Tower 1 Sudirman 52,000 For Lease & Sale Under Construction
World Capital Tower Mega Kuningan 72,000 For Lease & Sale Under Construction
Lippo Thamrin Office Tower Thamrin 16,500 For Sale Under Construction
T Tower Gatot Subroto 24,000 For Lease & Sale Under Construction
Millenium Centennial Tower Sudirman 93,588 For Lease Under Construction
Graha Makmur Gatot Subroto 10,345 For Lease Under Construction
Sudirman 7.8 Tower 1 Sudirman 52,000 For Lease & Sale Under Construction
2020
Thamrin Nine Thamrin 97,500 For Lease Under Construction
Social Security Tower Rasuna Said 23,500 For Lease Under Construction
Graha Binakarsa (redevelopment) Rasuna Said 20,000 For Lease Under Construction
continued
5
Office building project name Location SGA (sq m) Marketing scheme Progress development
continuation
2021
RDTX Place (Chitaland) Satrio 90,000 For Lease Under Construction
Daswin Tower Rasuna Said 100,000 For Lease Under Construction
Indonesia Satu North Tower Thamrin 43,000 For Lease Under Construction
Indonesia Satu South Tower Thamrin 88,500 For Lease Under Construction
Jakarta Office Tower by MORI Sudirman 90,000 For Lease Under Construction
CBD Occupancy Rates by Building Grade CBD Occupancy Rates by Sub-Market
Q1 2018 Q4 2018 Q1 2019 QOQ YOY Q1 2018 Q4 2018 Q1 2019 QOQ YOY
Premium 68.7% 74.7% 78.6% 3.9% 9.9% Thamrin 91.6% 90.3% 91.6% 1.3% 0.0%
Grade A 77.8% 80.1% 80.4% 0.3% 2.6% Sudirman 80.0% 80.3% 80.0% -0.3% 0.0%
Grade B 91.9% 89.1% 88.6% -0.5% -3.3% Rasuna Said 89.3% 90.5% 91.0% 0.5% 1.7%
Grade C 86.2% 84.2% 83.3% -0.9% -2.9% Mega Kuningan 68.5% 68.7% 70.1% 1.4% 1.6%
Source: Colliers International Gatot Subroto 76.7% 79.0% 81.4% 2.4% 4.7%
Satrio 76.0% 81.4% 84.3% 2.9% 8.3%
6
CBD Average Asking Rents (in IDR/sq m/month) by Building Grade
Q1 2018 Q4 2018 Q1 2019 QOQ YOY
Premium 459,110 358,684 368,068 2.6% -19.8%
Grade A 311,055 292,119 313,241 7.2% 0.7%
Grade B 226,399 229,726 229,230 -0.2% 1.3%
Grade C 175,445 179,605 174,127 -3.1% -0.8%
Outside the Central Business District (CBD)

New Pipeline
Office building project name Location Area SGA (sq m) Marketing scheme Progress development
2019
Arcade Business Center Pantai Indah Kapuk North Jakarta 22,000 For Lease Under Construction
Wisma Kartika Grogol Central Jakarta 11,770 For Lease Under Construction
One Belpark Office Pondok Labu South Jakarta 17,800 For Lease Under Construction
Soho Pancoran Panncoran South Jakarta 30,000 For Sale Under Construction
Pakuwon Tower Casablanca South Jakarta 80,000 For Lease & Sale Under Construction
Agung Sedayu Office Tower Pantai Indah Kapuk North Jakarta 50,000 For Lease Under Construction
The Sima TB Simatupang South Jakarta 59,169 For Lease & Sale Under Construction
continued
7
Office building project name Location Area SGA (sq m) Marketing scheme Progress development
continuation
2020
Jakarta Box Tower Kebon Sirih Central Jakarta 36,000 For Lease Under Construction
Citra Tower 1 Kemayoran Central Jakarta 40,000 For Lease & Sale Under Construction
One Tower Kemayoran Central Jakarta 21,400 For Sale Under Construction
Menara Tendean Tendean South Jakarta 26,599 For Lease Under Construction
Ciputra International Office Tower 2 Kembangan West Jakarta 15,000 For Lease Under Construction
2021
Wisma Barito Pacific 2 Slipi West Jakarta 26,000 For Lease & Sale Under Construction
South Gate Office Tower Tanjung Barat South Jakarta 30,000 For Lease In Planning
Occupancy rates in outside the CBD by sub market CBD Average Asking Rents (in IDR/sq m/month) by Sub-Market
Q1 2018 Q4 2018 Q1 2019 QOQ YOY Q1 2018 Q4 2018 Q1 2019 QOQ YOY
Central Jakarta 92.5% 90.7% 90.9% 0.2% -1.6% Central Jakarta 139,500 150,406 154,976 3.00% 11.10%
South Jakarta* 83.5% 84.6% 82.4% -2.2% -1.1% South Jakarta * 240,618 214,794 219,394 2.10% -8.80%
TB Simatupang 77.5% 75.8% 78.6% 2.8% 1.1% TB Simatupang 212,600 195,431 191,560 -2.00% -9.90%
North Jakarta 100.0% 100.0% 100.0% 0.0% 0.0% North Jakarta 82,286 82,286 90,833 10.40% 10.40%
East Jakarta 80.5% 82.6% 82.4% -0.2% 1.9% East Jakarta 193,253 163,223 161,205 -1.20% -16.60%
West Jakarta 92.5% 90.7% 90.9% 0.2% -1.6% West Jakarta 139,500 150,406 154,976 3.00% 11.10%
Source: Colliers International *exclude TB Simatupang
8
OFFICE | JAKARTA | RESEARCH | Q1 2019 | 2 APRIL 2019
Primary Authors: For further information, please contact:
Eko Arfianto Ferry Salanto
Senior Manager | Research | Indonesia Senior Associate Director| Research | Indonesia
+62 21 3043 6726 +62 21 3043 6730
Eko.Arfianto@colliers.com Ferry.Salanto@colliers.com
About Colliers International Group Inc.

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Copyright © 2019 Colliers International

The information contained herein has been obtained from sources deemed reliable. While every reasonable effort has been made to ensure its accuracy, we cannot guarantee it. No responsibility is assumed for any
inaccuracies. Readers are encouraged to consult their professional advisors prior to acting on any of the material contained in this report.
9
COLLIERS QUARTERLY APARTMENT | JAKARTA | RESEARCH | Q1 2019 | 2 APRIL 2019
Hern Rizal Gobi

Manager | Research | Jakarta
+(62 21) 3043 6727
Rizal.Gobi@colliers.com
JAKARTA APARTMENT MARKET
2019–23
Recommendations  Jakarta’s apartment market has yet to
change and is still characterised by slow
We do not see much absorption. We expect the average take-up
improvement on apartment rate to be at 85-86% at the end of 2019 and
Demand 87% 86-87% 87-89%
demand in Q1 2019, as we will increase to 87-89% in 2020 upwards, as
believe that marketing sales are the new government will be settled.
still supported by end-user type
of buyers, rather than investors.  We expect a total of 49,493 units completed
Faced with intensifying market in 2019-2023 with 2019 contributes the
competition, developers are likely highest supply of 15,821 units. 1,847 15,821 9,899
Supply
to highlight the ongoing or
completed infrastructure projects
as an important and effective  Rent is projected to stabilise throughout the 1.25% 2% 1-2%
selling strategy. Nevertheless, we year and overall rents to increase by 1-2%
remain hopeful that a revamped per annum in 2019-2023, as competition
Rent becomes tighter. IDR306,422 IDR308,585 IDR327,521
master plan to improve slow
demand, such as implementing
property regulation for > Price and outlook are somewhat flat due to 0.9% 3-4% 5-6%
foreigners, reducing property tax the property industry sentiment and an
and lowering the interest rate, uncertain political year. We expect the
will help improve the challenging growth of apartment price to remain
Price subdued in 2019 at 3-4% and will climb IDR39.0 mio
property landscape. IDR34.1 mio IDR35.0 mio
gradually at 5-6% in 2020-2023.
Source: Colliers International. Note: rents are per square meter per month and prices are per square meter; USD1 to IDR14,173 as of end-Q1 2019
*CBD. **South Jakarta including non-prime area
STRATA-TITLE APARTMENT Developers remained conservative given the market performed slower than
expected. All big local developers were off their 2018’s sales target and have
By the end of Q1 2019, the total supply of strata-title apartments in Jakarta set their 2019 sales target lower than 2018. This was reflected in the limited
grew at a moderate pace. The market received 1,847 new units from the number of projects being introduced/launched in Q1 2019 as they would
handover of five new completed projects. Thus, including the newly rather clear their existing stocks first before launching new projects.
completed projects, the total existing apartment in Jakarta has reached
203,664 units, which is an increase of 0.9% compared to the previous Sales target and realisation of some property developers
quarter and 7.3% YOY. West Jakarta still dominates the total existing supply
by 24.8%, followed by South Jakarta and North Jakarta by 19.4 and 18.8%,
respectively.
Cumulative supply
*) as per Q3 2018
DEMAND FOR APARTMENT HAS

Regarding supply projection, we have made some revisions from 2019 to

REMAINED BROADLY THE SAME
2021 in the light of a slow construction progress and delayed ground- Until Q1 2019, the Jakarta apartment market is still characterised by slow
breaking schedule. According to developers, the slow sales and delay in take-up rate as a result of softening demand, particularly from investor-type
acquiring permits have caused them to not deliver their projects on of buyers. Demand from speculative buyers and buy-to-rent investors still be
schedule. We expect a total of 37,124 units to be completed between 2019 limited due to their wait-and-see attitude, weak rental market and high
and 2021 (15,821 in 2019, 11,834 in 2020 and 9,469 in 2021). interest rates. These factors will make it harder to profit from rental income
(low yield) or to resell units that are under construction. The market will
focus instead on end-user buyers and clearing unsold units in completed
buildings.
2
With many available units in the market, there will be winners and losers. More recently, Bank Indonesia indicated that its policy rate is almost at its
With a lot of options to choose from, unsold units are being offered at peak as the US Fed is likely to leave interest rate unchanged. Thus, local
discounts to clear out inventory. Since they are not competing on price bank may maintain interest rate at their current levels whilst offering
alone, developers add other unique selling points to attract buyers. Mixed- competitive mortgage rates. Furthermore, we believe the middle segment
use development concept, rental guarantee gimmick, free furnishing and will continue to compose the property market in the near term, especially
home automation are some of the selling points in the market today. With products that cost below IDR2 billion.
such a tight market competition, we believe the winners will not be the
On the other front, the adjustment to luxury and super luxury taxes would
projects with the best room design, but those that can sell the right lifestyle
potentially boost the upper segment. This is further backed by an improving
with the right price and proximity to a public transport.
macroeconomic backdrop. We hope to see a more stabilised political
Absorption rates situation and better economic growth with no major changes in government
policy, rate cuts, a stronger currency and pro market policy from the
government.
Asking price
Average asking prices for strata-title apartments have continued to
demonstrate an upward trend. As of Q1 2019, the average asking price of
apartments in Jakarta rose by 0.9% QOQ and 3.9% YOY to IDR34.1 million/sq
m. Although there was a slight movement upward, the market is viewing this
as a blip rather than the start of a trend reversal.
Amidst the presently challenging market and with many units competing
against each other, the widening gap between supply (available stock) and
demand, coupled with high interest rate, will continue to impinge on price
growth as the market finds its equilibrium. Prices are expected to remain
stable in 2019, although the price movement within market segments is
likely to vary.
Source: Colliers International Also, after the completion of the mass rapid transit (MRT), property prices
alongside the MRT line could adjust when the station begins operational and
Average take-up rate in different regions residents begin enjoying the convenience from having an MRT station
nearby. Although an MRT line improves transport connectivity and
Q1 2018 Q4 2018 Q1 2019 QOQ YOY
accessibility within the immediate vicinity of its stations, the effects could
differ depending on the precise location of the station, in our opinion.
CBD 90.5% 91.6% 89.7% -1.9% -0.7%
South Jakarta 88.3% 86.6% 86.4% -0.2% -1.9%
Non-prime Area 84.0% 86.3% 86.8% 0.5% 2.8%

3
Average apartment asking prices (in IDR/sq m) in different regions Despite an overall slowdown, most, if not all, international-chain serviced
apartments still saw some leasing activities, as tenants are on the lookout for
Q1 2018 Q4 2018 Q1 2019 QOQ YOY better deals. Furthermore, tenants that seek to remain and renew their
leases would be well-advised to leverage relocation alternatives far in
CBD 50,618,635 51,826,226 51,912,477 0.2% 2.6% advance of their lease expirations to ensure the most favourable terms.
South
37,750,611 38,484,201 38,547,387 0.2% 2.1%
Rental
Jakarta With market sentiment remaining weak, tenants have higher bargaining
Non-prime power on lease renewals, whilst landlords are more willing to negotiate.
24,793,795 25,477,331 25,868,709 1.5% 4.3%
Area Aggressively negotiated transactions can expect to receive around 5%
Overall discount of the asking range, depending on tenure – a longer tenure can get
32,831,963 33,808,198 34,098,332 0.9% 3.9%
Jakarta maximum discount. Accepting market conditions, landlords were more
Source: Colliers International realistic and deployed flexible rental strategies in the reviewed quarter.
Most rental apartments have kept their previous rents to attract new
APARTMENT FOR LEASE tenants, whilst some have lowered theirs. To date, the average asking rental
rate in the CBD increased by 1.4% QOQ, whilst in South Jakarta (including
Supply non-prime areas) recorded a lower increment rate at 1.1%.
No new serviced and non-serviced apartment was completed in Q1 2019.
Average Rental Rate & Occupancy Rate
Thus, as of end of March 2019, the cumulative supply of apartments for
lease stood at 9,052 units, consisting of 61% serviced apartments and 39% .
non-serviced apartments. Jakarta expects to see three serviced apartment
projects, with a total of 641 units in the next three years upon the
completion of Oakwood Premiere at District 8 Senopati, Somerset Kencana
Jakarta, Somerset Residence Jakarta and Ascott Menteng Jakarta. Despite
having limited supply, the rental apartment sector will continue to
experience intense competition from future upscale buy-to-let strata-title
apartments, which generally offer competitive rates.
Occupancy
Q1 (particularly in January and February over the New Year and Chinese
New Year holidays) is typically a slow quarter for the rental market. Many
tenants were out of the country and transactions were apparently slow.
Besides the seasonal effect, market sentiments were suppressed by the
upcoming elections. Overall, the average occupancy rate of apartments for
lease in Jakarta in Q1 2019 is down slightly from 71.6% in the previous
quarter to 70.4%. Source: Colliers International
4
APPENDIX
Projects completion during Q1 2019
Name of development Location Region Developer # Units
Casa Grande Residence 2 (Tower Chianti) Jl. Casablanca South Jakarta Pakuwon Group 350
Branz Simatupang (2 towers) TB. Simatupang South Jakarta Tokyuland 381
The Elements Epicentrum (2 towers) Rasuna Said CBD Sinar Mas Land 372
Casa Domaine Prive Jl. Jend. Sudirman Kav 1 CBD PT Griya Ceria Nusa Mekar 137
Sentra Timur Residence (Tower Sapphire) Pulo Gebang East Jakarta PT Bakrieland Development 607
Newly launched projects in Q1 2019

Name of development Location Region Expected completion time Estimated price/sq m* # Unit
Branz Mega Kuningan Mega Kuningan CBD 2023 IDR53-54 million

512
Tamansari Skyhive Jl. D.I. Pandjaitan, Kav.49 East Jakarta 2022 IDR32-34 million
570
5
New Pipeline
Apartment Name Location Region Developer #Units Status
2019
The Suites Satrio Jl. Prof. Dr. Satrio CBD Ciputra 200 Under-construction
Gayanti City Jl. Gatot Subroto CBD PT Buana Pasifik International 174 Under-construction
Verde Two (Tower Monteverde) Jl. Rasuna Said CBD Farpoint Realty 152 Under-construction
South Hill Jl. Denpasar Raya CBD Tan Kian 611 Under-construction
The Elements Epicentrum (2 Towers) Rasuna Said CBD Sinar Mas Land 372 Under-construction
Casa Domaine Prive Jl. Jend. Sudirman Kav 1 CBD Lyman Group 137 Under-construction
Jl. Penjernihan I Kav.1

T - Plaza Residence (Tower A & C) Central Jakarta PT. Prima Kencana 614 Under-construction
Pejompongan
PT. Muliaguna Propertindo
Sudirman Hill Residence Jl. Karet Pasar Baru Barat Central Jakarta 299 Under-construction
Development
Royal Suites Kemayoran Central Jakarta Springhill Golf Group 450 Under-construction
Sentra Timur Residence (Tower Safir) Pulo Gebang East Jakarta Bakriland Development 607 Under-construction
Pluit Residences (Tower Ibiza) Pluit North Jakarta Binakarya Propertindo Group 500 Under-construction
Pluit Seaview (Tower Bahama) Pluit North Jakarta Binakarya Propertindo Group 650 Under-construction
Gold Coast Apartment (Atlantic Tower) Pantai Indah Kapuk North Jakarta Agung Sedayu 568 Under-construction
Regatta Apartment (Tower New York) Pantai Mutiara North Jakarta Intiland 186 Under-construction
Sedayu City (Tower Melbourne) Jl. Pegangsaan Dua Raya North Jakarta Agung Sedayu 912 Under-construction
The Kensington Royal Suites (4 Tower) Kelapa Gading North Jakarta Summarecon 790 Under-construction
continued
6
continuation
Gold Coast Apartment (Bahama Tower) Pantai Indah Kapuk North Jakarta Agung Sedayu 600 Under-construction
Gold Coast Apartment (Carribean Tower) Pantai Indah Kapuk North Jakarta Agung Sedayu 600 Under-construction
Gold Coast Apartment (Honolulu Tower) Pantai Indah Kapuk North Jakarta Agung Sedayu 600 Under-construction
Pakubuwono Terrace Grand Tower Kebayoran Lama South Jakarta PT. Selaras Mitra Sejati 435 Under-construction
Bellevue Place MT Haryono, Tebet South Jakarta Gapura Prima 240 Under-construction
One Casablanca Residence Jl. Pal Batu South Jakarta Forza Land 215 Under-construction
The Langham Residences Senopati South Jakarta Agung Sedayu Group 57 Under-construction
Casa Grande Residence 2 (Tower Chianti) Jl. Casablanca South Jakarta Pakuwon Group 350 Under-construction
Kebayoran Apartment Jl. Raya Ulujami South Jakarta Karya Cipta Group 344 Under-construction
45 Antasari (2 Tower) Antasari South Jakarta Cowell Development 1,924 Under-construction
Branz Simatupang (2 tower) TB. Simatupang South Jakarta Tokyuland 381 Under-construction
Synthesis Residence Kemang (3 towers) Jl. Ampera Raya No.17 South Jakarta PT. Synthesis Development 1,100 Under-construction
The Padmayana Jl. Sinabung Raya No.58 South Jakarta Adhi Karya 145 Under-construction
PT Adicipta Graha Kencana

Puri Orchad (Magnolia Spring tower) Jl Raya Adicipta West Jakarta 544 Under-construction
(Serenity Group)
Grand Madison Park Tanjung Duren West Jakarta Agung Podomoro Group 300 Under-construction
Green Sedayu Apartment (Tower

Jl. Kamal Raya, Cengkareng West Jakarta Agung Sedayu 644 Under-construction
Pasadena)
Citra Living Apartment (Somerset Tower) Jl. Citra 7, Kalideres West Jakarta Citra Mitra Graha KSO 120 Under-construction
continued
7
continuation
2020
Verde Two (Tower Terraverde) Jl. Rasuna Said CBD Farpoint Realty 182 Under-construction
Le' Parc Jl. Thamrin CBD PT. Putragaya Wahana 100 Under-construction
The Newton at Ciputra World 2 Jl. Karet Sawah CBD Ciputra 450 Under-construction
Arandra Residence Jl. Cempaka Putih Raya No.1 Central Jakarta Gamaland 687 Under-construction
Menara Jakarta (Tower Equinox) Kemayoran Central Jakarta Agung Sedayu 396 Under-construction
Menara Jakarta (Tower Azure) Kemayoran Central Jakarta Agung Sedayu 860 Under-construction
The Sahid Asena Apartment and Garden Ciracas East Jakarta Sahid Group 476 Under-construction
East 8 (2 towers) Cibubur East Jakarta Karya Cipta Group 1,172 Under-construction
Sedayu City (Tower Darwin) Jl. Pegangsaan Dua Raya North Jakarta Agung Sedayu 936 Under-construction
Orient Residence Jl. Yos Sudarso, No 76 North Jakarta PT Tri Raton Mega 225 Under-construction
PT Griya Karunia Sejahtera

The Foresque Pasar Minggu, Ragunan South Jakarta 660 Under-construction
(Binakarya Propertindo Group)
Selatan 8 (Tower Sultan) Kebayoran Lama South Jakarta Karya Cipta Group 336 Under-construction
The Aspen Peak at Admiralty (Tower D) Jl. Fatmawati South Jakarta PT. Harmas Jalasveva 322 Under-construction
Permata Hijau Suites Jl. Raya Kebayoran Lama South Jakarta PT Palmerindo Properti 649 Under-construction
Apple Residence Jatipadang South Jakarta PT Diamond Land Development 300 Under-construction
Southgate Residence (2 tower) Jl. Tj Barat Raya, Jagakarsa South Jakarta Sinar Mas Land 489 Under-construction
Jl. Kebon Jeruk Raya,

Gianetti Apartment West Jakarta Bangun Investa Graha 500 Under-construction
Kemanggisan
continued
8
continuation
PT Itomas Kembangan Perdana
Aerium Taman Permata Buana (South
Taman Permata Buana West Jakarta (Sinarmas Land & ITOCHU Under-construction
Tower) 366
Indonesia)
Citra Living Apartment (Orchad Tower) Jl. Citra 7, Kalideres West Jakarta Under-construction
Citra Mitra Graha KSO 312
Citra Living Apartment (Lotus Tower) Jl. Citra 7, Kalideres West Jakarta Under-construction
Citra Mitra Graha KSO 312
Green Sedayu Apartment (Tower New
Jl. Kamal Raya, Cengkareng West Jakarta Under-construction
York) Agung Sedayu 920
Daan Mogot City (3 towers) Daan Mogot West Jakarta PT China Harbour Jakarta Real Under-construction
Estate Development 976
Prosperity Residence (Lotus Tower) Jl. Raya Kembangan West Jakarta Under-construction
Prosperity Group 208
2021
The Residences at The St. Regis Jakarta Jl. H.R Rasuna Said CBD Rajawali Property Group 164 Under-construction
57 Promenade Jl. Kebon Melati CBD Intiland 496 Under-construction
The Linq Kemayoran (2 towers) Kemayoran Central Jakarta KG Global 1,020 Under-construction
The Pakubuwono Menteng Jl. Sabang, Menteng Central Jakarta Pakubuwono Development 340 Under-construction
The Stature Jakarta Jl. Kebon Sirih Central Jakarta Capitaland and Credo Group 87 Under-construction
Prajawangsa City (3 towers) Jl. Raya Bogor, Cijantung East Jakarta Synthesis Development 1,500 Under-construction
Cleon Park Apartment (2 towers) Cakung, Jakarta Garden City East Jakarta Modern Land Realty 630 Under-construction
Fatmawati City Center - Corona Park Suite

Jl. Ampera Raya No.17 South Jakarta PT. Synthesis Development 620 Under-construction
Tower
Samara Suites Jl. Gatot Subroto South Jakarta Synthesis Development 300 Under-construction
continued
9
continuation
Lavish Kemang Residence Jl. Kemang Raya No.3, Bangka South Jakarta PT Kemang Karya Utama 474 Under-construction
Kasamara Residence Jl. Kesehatan Raya South Jakarta PT MGM Propertindo 151 Under-construction
Kebayoran Apartment Jl. Ulujami Raya No.10 South Jakarta Karya Cipta Group 781 Under-construction
Dharma Tower Apartment Jl. Dharmawangsa VII South Jakarta PT Dharma Tatemono Property 80 Under-construction
Solterra Place (2 tower) Pejaten South Jakarta Waskita Realty 2,000 Under-construction
West Point Apartment Jl. Macan Kav.4-6 Kedoya Utara West Jakarta PT Andaland Property 272 Under-construction
Jl. Arjuna Selatan No. 10, Kebon

Cluny Residence (2 towers) West Jakarta PT Alam Makmur Property 554 Under-construction
Jeruk
2022
Pollux Sky Suites Jl. Mega Kuningan Barat III CBD 194 Under-construction
Pollux Propety
Holland Village Cempaka Putih Central Jakarta 400 Under-construction

Lippo Karawaci
Sakura Garden City (phase 1) Jl. Bina Marga No.88 East Jakarta 2,200 Under-construction
PT Trivo Group and Daiwa House
Grand Marina Ancol Ancol North Jakarta PT. Bangun Setia Cipta (Jaya 672 Under-construction
Ancol)
South Quarter Residence TB Simatupang South Jakarta 336 Under-construction

Intiland
Arumaya Residence TB Simatupang South Jakarta 262 Under-construction

Astra Land
Puri 8 Residence (Himeji Tower) Duri, Kosambi West Jakarta PT Midas Citra Utama & Creed 413 Under-construction
Group
Puri 8 Residence (Edo Tower) Duri, Kosambi West Jakarta PT Midas Citra Utama & Creed 339 Under-construction
Group
continued
10
continuation
PT Midas Citra Utama & Creed
Puri 8 Residence (Takeda Tower) Duri, Kosambi West Jakarta 342 Under-construction
Group
Tamansari Sky Hive Jl. D.I. Pandjaitan, Kav.49 East Jakarta Wika Realty 570 Under-construction
Jl. Tawakal Ujung Raya,

Tomang Park Apartment (2 towers) West Jakarta PT Phoenix Property 2,000 Under-construction
Tomang
Branz Puri Indah (2 towers) Jl. Meruya Selatan, Joglo West Jakarta Tokyuland 608 Under-construction
11
Hern Rizal Gobi Ferry Salanto
Manager | Research | Indonesia Senior Associate Director| Research | Indonesia
+62 21 3043 6727 +62 21 3043 6730
gobi.rizal@colliers.com Ferry.salanto@colliers.com


COLLIERS QUARTERLY RETAIL | JABODETABEK | RESEARCH | Q1 2019 | 2 APRIL 2019
Eko Arfianto
Senior Manager | Research | Jakarta
+6221 3043 6726
Eko.Arfianto@colliers.com TOWARDS A MORE ATTRACTIVE RETAIL CONCEPT
IN THE FUTURE
2019–23
Recommendations  Increasing demand for F&B will impact
tenant composition at shopping centres.
Competition amongst retailers
Shopping will consider adding more F&B in
remains vibrant. We expect Demand their tenancy mix and will likely to continue 79,578 sq m 11,369 sq m 96,730 sq m
retailers will continue to expand over some years ahead.
in the future by following the
current retail trend and
sell products which are  We will see almost 876,445 sq m of
highly demanded, like modern additional retail supply up to 2023, around
and casual fashion and coffee 58% of which will be located in Jakarta. 220,000 sq m 152,741 sq m
Supply 0 sq m
shop concept of stores. The
metro area’s large population is
still the main reason why local > Vacancy is expected to register at 19% from 1.1 % 2.3 % 0.6%
and overseas retailers are 2019 to 2023 mainly due to the influx of
deciding to expand. retail supply.
Vacancy 19.2% 19.0%
We recommend retailers focus 18.0%
on selling products in specific > Rent is expected to increase by 1.0-1.4% per 1.1 % 1.0%
market segments they targeted. year in 2019-2023 due to the availability of
Meanwhile, landlords should higher quality new projects, with a slower
continue to adapt to consumer Rent growth rate in Greater Jakarta. 500,564 505,977 511,555
preferences by making more Source: Colliers International. Note: JaBoDeTaBek refers to the greater Jakarta area; rents are per square meter per month; USD1 to IDR14,173 as of end-Q1 2019;
room for food and beverage 1 sq m = 10.76 sq ft
(F&B) tenants, fast fashion

retailers and entertainment
occupiers.
retail spaces in the future, either for people transit or as an integration with
Q1 NEW RETAIL SPACE IS LIMITED existing mall as a shopping destination. The future plan to integrate all means
of public transportation (MRT, LRT, busway and railway) will increase number
Jakarta and Greater Jakarta Cumulative Supply of retail hub for existing shopping malls as well as heritage areas that might
become a new destination.
SOME STORES ARE UNDER FITTING

OUT, OCCUPANCY WEAKENS
Vacant Spaces and Occupancy Rates for Retail Space for Lease in
JABODETABEK
Total retail supply in Jakarta remained at 4.7 million sq m, with no new

shopping centres opening in Q1 2019. Up to the end 2019, two shopping
centres are expected to contribute around 90,000 sq m and increase the
total supply by almost 2% YOY.
Total retail supply in Greater Jakarta remains unchanged qoq at 2.6 million sq
m in Q1 2019. We estimate the cumulative retail space in Greater Jakarta to
increase by 5% at the end of 2019. Three shopping centres are expected to
meet completion and bring around 130,000 sq m of spaces in the remaining Source: Colliers International
months of 2019.
After being relative flat in 2018, the average occupancy rate in Jakarta fell in
In our view, a shopping centres should ideally implement the customer- Q1 2019. Some shopping centres are in the process of renovating to re-
friendly design and concept of a street mall to attract more visitors. Besides arrange their tenancy. Other than that, some stores closed, affected by
alfresco concept, a street mall may well be accepted and provide a new increasingly tough competition amongst retailers at least in the last two
shopping experience for everyone. The recent operation of MRT in the CBD years. This situation caused the average occupancy rate to register at 82.4%
should change retail landscape in Jakarta to TOD concept that will create new in Q1 2019, dropping by 1.2% QOQ.
2
production base to Indonesia. Inone offers a variety of lifestyle products

Conversely, the average occupancy rate in Greater Jakarta was recorded at from electronics to daily-living equipment, including electronic accessories,
82.6% in Q1 2019, experiencing a moderate growth QOQ. Large additional beauty, fashion, household appliances and travel items.
retail spaces in the remaining quarters may lead the average occupancy rate
in Greater Jakarta to decline below 80% by the end of 2019. Regarding strategy, to survive and continuously expand in the current
competitive climate, retailers should also implement a multi-tier retail
EVOLVING INTO DIGITAL PHASE formula by accommodating customer needs ranging from premium to lower
middle segmentation, both online and offline. Nevertheless today, retailers
The newly announced e-commerce tax for online platforms could not plan to expand, often facing against limited available spaces at their
sufficiently be classed equally with offline retailers. Many e-commerce destination malls. As a solution, expanding to other major cities in Indonesia
businesses gave massive discounts to customers, and therefore, products has become an option for retailers.
were often priced below the cost of manufacturing. Aggressive competition
between online and offline retailers has also caused some retail giants to Another challenge in retail is boosting a passion for shopping that almost in
suffer huge losses or close shop. Department stores and hypermarkets the last two years showed a paradigm shift from saving to spending. Also, a
continue to face hardships and lag behind in the current retail market transformation in consumption patterns at the middle to middle lower class
situation. Likewise, electronic stores continue to erode in the face of online that prefers leisure and travel is expected to continue until 2019.
stores. In addition, a publication by the Ministry of Trade stated that consumers are
In addition, cash transactions are increasingly becoming obsolete, as people now increasingly critical. The indication is based on the results of a research
switch to non-cash or cashless transactions. Mobile phone platforms are study on consumer protection, measuring the level of public courage as
likely to continue to be aggressive and retail with online and offline consumers complain against violations committed by producers or retailer
presences that will be the best place to capture consumer demand. businesses.
Turning to the digital era has significant impact

More and more establishments will most probably switch to digital, as
MODERATE GROWTH TO
triggered by a Provincial Sectoral Minimum Wage (UMSP) of DKI Jakarta
regulation that was stipulated in Gubernatorial Regulation. The regulation
MAINTAIN THE PERFORMANCES
prohibits retailers from paying wages below the regulated minimum wage. The average rent for shopping centres in Jakarta was relatively stable since
According to the Association of Indonesian Retailers (APRINDO), regarding H2 2108 at IDR617,920/sq m/month. Landlords are more focused on
this decision, retailers might need to lay off workers and replace them with maintaining occupancy as their main option than increasing rents.
automated machines to make their business more cost-efficient. For Therefore, most landlords have maintained their rents as in 2018. A similar
convenient stores, retailers had to allocate 30-40% of their revenue for trend was also shown by shopping centres in Greater Jakarta. The absence of
wages, whilst for supermarkets and department stores, the percentage was additional retail supply also contributed to setting the average rent relatively
often higher. flat at IDR 382,936/sq m/month in Q1 2019.
Regarding the provision of products, meeting people’s lifestyle needs will still Future retail supply in 2019 is expected but could significantly affect the
be the main reason for people to visit shopping centres, in addition to projected rent for shopping centres in Jakarta and Greater Area. In Jakarta,
recreation. Retailers consistently respond to this trend. Recently, Inone we forecast the average rent in 2019 to only increase by 1.5-2% compared
Technology Indonesia, owner of "Inone", an innovative international retail to that in 2018. Meanwhile in Greater Jakarta, the average rent will show a
brand, is planning to more actively open new outlets and move their slightly slower growth than in Jakarta YOY.
3
Service charge moved slowly in Q1 2019. Most landlords still refused to

increase their service charge tariffs in Q1 2019. Nevertheless, the average
service charge for shopping centres in Jakarta was recorded at
IDR141,533/sq m/month, growing by 1.8% qoq. Meanwhile in Greater
Jakarta, the average service charge was recorded slightly higher compared to
the previous quarter. Some shopping centres set new tariffs and brought the
average service charge rates to increase by 1.2% at IDR109,444/sq m/month
in Q1 2019.
By the end of 2019, we forecast the average service charge in Jakarta and
Greater Area to grow by 2-3% compared to that in 2018.
Average rents and service charges in JaBoDeTaBek
4
COLLIERS QUARTERLY RETAIL JABODETABEK || RESEARCH
RETAIL | JABODETABEK RESEARCH || Q1
Q1 2019
2019 || 22 APRIL
APRIL 2019
2019
APPENDIX
New Pipeline
Shopping center Location Region NLA (sq m) Developer Development Status
Jakarta
2019
New Harco Plaza Glodok West Jakarta 60,000 Agung Podomoro Land Under Construction
Taman Anggrek Residence Mall S. Parman West Jakarta 30,000 Agung Sedayu Under Construction
2020
AEON Mall Tanjung Barat Lenteng Agung South Jakarta 39,200 Sinarmas Land & Aeon Under Construction
Holland Village Mall Cempaka Putih Central Jakarta 56,000 Lippo Karawaci Under Construction
2021
Menara Jakarta Shopping Mall Kemayoran Central Jakarta 151,560 Agung Sedayu Under Construction
Pondok Indah Mall 3 Pondok Indah South Jakarta 70,000 Metropolitan Kentjana In Planning
Daan Mogot City Daan Mogot West Jakarta 28,000 China Harbor In Planning
continued
5
Shopping center Location Region NLA (sq m) Developer Development Status
Greater Jakarta
2019
Galeria Mall Vivo Sentul Cibinong Bogor 35,000 Megapolitan Under Construction
AEON Mall Sentul City Sentul Bogor 71,000 AEON & Sentul City Under Construction
Grand Dhika City Mall Bekasi Bekasi 24,000 Adhi Persada Property Under Construction
2020
Mall at Transpark Cibubur Cibubur Depok 30,000 Transcorp Under Construction

6
Eko Arfianto Ferry Salanto
Senior Manager | Research | Indonesia Senior Associate Director| Research | Indonesia
+62 21 3043 6726 +62 21 3043 6730
eko.arfianto@colliers.com Ferry.salanto@colliers.com


COLLIERS QUARTERLY HOTEL | JAKARTA | RESEARCH | Q1 2018 | 2 APRIL 2019
Nurul Yonasari
Senior Research Executive | Research |
Jakarta
+(62 21) 3043 6728
Nurul.Yonasari@colliers.com
JAKARTA HOTEL MARKET
2019–21
Recommendations
The slow performance in Q1 2019
was already predicted. Business > Jakarta anticipates 4,937 additional new
activity has yet to resume and the hotel rooms from 2019- 2021
Supply 311 rooms 3,452 rooms 1,646 rooms
anticipated political event is
another reason why the market in
Q1 has not flourished. Fortunately, 0% -0.1% 0.6%
> As predicted, occupancy in Q1 2019 was
several corporate and government relatively stable, particularly due to limited
events had commenced and were number of events that may attract people to
expected to be done before come to Jakarta other than to do business. 62.6% 62.5% 63.2
Election Day. Occupancy
Q2 will be challenging due to

festive season. Hoteliers have to 0.2 % 0.5% 1.6%
> The ADR slightly increased because hotel
keep up with their Q3 and Q4
management tends to increase the basic
budgets. Hoteliers are pretty sure
rate. There are some indications that MICE USD73.1 USD73.2 USD74.1
that there will be a lot of Room Rate
activities from corporate and government
government activities held during will become active, closing 2019.
Q3 and Q4. To maintain loyal
customers, hoteliers must also
dare to offer privileges to their
guests so that they would not
move to other hotels, especially
new hotels.
Supply Hotel Project Cumulative Supply

The pace of hotel development in Jakarta is slower over the years. The
number of new hotels opening in Jakarta has been sagging from 2015 to
2018. Meanwhile, in TB Simatupang and surrounding areas like Pondok
Indah, Fatmawati, Gandaria and Lebak Bulus, nine new hotels (five 4-star
hotels, three 3-star hotels and one 5-star) have opened since 2015. This
means that around 23% of the new hotels in Jakarta (opened between 2015
and 2018) are located in the TB Simatupang area. As of the end of 2019,
there will be new Ibis Styles hotel TB Simatupang, which will support
business activities here.
Hotel Room Cumulative Supply
Performance
There were concerns related to the election that could affect hotel
performance. As acknowledged by several hoteliers, several companies
chose to hold some of their activities related to the current political
situation. The expected advantage from political parties activity prior to the
election was not reflected in the good performance both occupancy and
room tariff. During Q1 2019, the hotel market is very much underpinned by
corporate activity
2
Monthly Average Occupancy Rate (AOR) Monthly Average Daily Rate (ADR)
Source: STR Source: STR
The Q2 2019 will be a challenging period due to the upcoming festive season.
Our projection for Q2 2019 will have in the same pattern compared to the
previous years . Business activity will slow down in line with Islamic long
holiday and approaching school holiday.
3
COLLIERS QUARTERLY HOTEL | JAKARTA | RESEARCH | Q1 2018
2019 | 2 APRIL 2019
APPENDIX
Newly Operating Hotels During 2018
Hotel Name Starred Rate STR Chain Scale Rate Location Region #Rooms Opening Time
InterContinental Pondok Indah 5-star Luxury Class Jl Metro Pondok Indah South Jakarta 311 January 2019
New pipeline
Project Completion
Hotel Name Starred Rate STR Chain Scale Rate Location Region #Rooms
Status Time
Under
Ibis Styles TB Simatupang 3-star Upper Midscale Class Jl TB Simatupang South Jakarta 142 2019
construction
Under
Ibis Styles Jakarta Tanah Abang 3-star Upper Midscale Class Tanah Abang Central Jakarta 201 2019
construction
Under
Hotel by Graha Gatsu Lestari 3-star Undefined Jl Gatot Subroto South Jakarta 100 2019
construction
Under
Asana Taman Mini 3-star Undefined Taman Mini Indonesia Indah East Jakarta 160 2019
construction
Des Indes Boutique Hotel by Preference Under
3-star Undefined HOS Cokroaminoto Central Jakarta 97 2019
Tauzia construction
Under
Artama Hotel Kebon Kacang 3-star Undefined Jl Kebon Kacang Central Jakarta 100 2019
construction
Under
R1 Hotel 3-star Undefined Jl H Agus Salim Central Jakarta 135 2019
construction
Under
Citradream 3-star Upscale Class Pasar Senen Central Jakarta 200 2020
construction
Under
Citizen M 3-star Undefined Jl Prof. Dr. Satrio CBD 200 2022
planning
continued
4
New pipeline
Project Completion
Hotel Name Starred Rate STR Chain Scale Rate Location Region #Rooms
Status Time
continuation
Aston Kartika Grogol Hotel & Conference Under
4-star Upscale Class Jl Kyai Tapa West Jakarta 189 2019
Center construction
Under
Aston Titanium Cijantung 4-star Upscale Class Cijantung East Jakarta 225 2019
construction
Swiss-Belhotel Kirana Avenue - Kelapa Under
4-star Upscale Class Kelapa Gading North Jakarta 316 2019
Gading construction
Under
Novotel Cikini 4-star Upscale Class Cikini Central Jakarta 245 2019
construction
Under
Mercure Jakarta Gatot Subroto 4-star Upper Midscale Class Jl Gatot Subroto South Jakarta 253 2019
Construction
Under
Mercure Jakarta Batavia 4-star Upper Midscale Class Jl Kali Besar Barat West Jakarta 376 2019
Construction
Under
Front One Hotel Splendor Jakarta 4-star Undefined Jl Arjuna Raya West Jakarta 100 2020
construction
Under
Batiqa Casablanca 4-star Undefined Jl Casablanca South Jakarta 156 2020
construction
Under
St Regis 5-star Luxury Class HR Rasuna Said CBD 280 2019
construction
Under
Park Hyatt Hotel 5-star Luxury Class Kebon Sirih Central Jakarta 221 2019
construction
Under
Swisotel Jakarta PIK Avenue 5-star Luxury Class PIK Avenue North Jakarta 412 2019
construction
Under
Waldorf Astoria 5-star Luxury Class Thamrin CBD 181 2020
construction
Under
The Langham District 8@Lot 28 SCBD 5-star Luxury Class SCBD CBD 200 2020
construction
Under
Rosewood Jakarta 5-star Luxury Class Satrio CBD 200 2020
construction
Under
Regent 5-star Luxury Class Gatot Subroto CBD 126 2020
construction
5
Nurul Yonasari Ferry Salanto
Senior Research Executive | Research | Indonesia Senior Associate Director| Research | Indonesia
+62 21 3043 6728 +62 21 3043 6730
nurul.yonasari@colliers.com Ferry.salanto@colliers.com


COLLIERS QUARTERLY INDU S TR IAL ES TATE | JAKAR TA & GR EATER JAKAR TA | R ES EAR CH | Q 1 2018 | 2 AP R IL 2019
JAKARTA & GREATER JAKARTA INDUSTRIAL ESTATE

Ferry Salanto
Senior Associate Director | Research |
Jakarta
MARKET
+(62 21) 3043 6729
Ferry.Salanto@colliers.com
2019–23
Recommendations
> Colliers still see potential demand will still
Industrial transaction took place come from food industry, consumer goods,
during Q1 2019 was very much Demand logistics/warehouse, steel-related and
109.4 ha 273.6 ha 267.2 ha
fueled by astounding sales automotive sectors over the next three
years.
performance exposed by Modern
Cikande. Concluding a total of
67.2 hectares land, sales in
Modern Cikande already > There is limited expansion activities going
represent about 61.4% of total ahead with more than 1,000 hectares of land
sales for this quarter. Excluding Supply are still available to sell. 0 ha 55 ha 171.2 ha
Modern Cikande and GIIC, the
overall sales performance has
relatively slow, thus the market
> We revise our price projection this year with 2.5% 3.0%
responded by the adjustment in 5.3%
land price tend to stabilise until the end of
price in order to accelerate sales 2019 as most industrial estates will still need
volume, taking the momentum of Price to consolidate internally and will give more
USD194.83 USD200.67 USD221.62
post presidential election in mid focus on sales volume acceleration.
April. Source: Colliers International
In general, most industrial estates

have already took the right
stance in response to the market.
Price adjustment, more
accommodative to the potential
buyers and other compelling
measures has been seen over the
last periods.
Land supply Land sales and leasing activity

The land status for existing, under construction and future industrial land Without Modern Cikande and GIIC having registered a remarkable
remains unchanged. The land status of some industrial estates in Karawang transaction amount this quarter, the industrial market in the early quarter
varies with some holding plenty land to be sold, some may have a few land this year was only around 23 hectares. Total amount of transaction during
to sell. This also happens in Bekasi. Q1 2019 sales was very much underpinned by Modern Cikande that have
secured a total of 67.2 hectares only in one quarter and GIIC that concluded
In term of number of ready-to-build land, Bekasi and Karawang have about a total of 19 hectares deal. After a long transaction process since last year,
the same stock, however, with huge number of undeveloped area, Karawang eight transaction were recorded in Modern Cikande including a sizeable 30
will have more area to be converted into industrial uses from the expansion hectares deal with one textile company, food industry (including the supply
of several existing estates. Likewise in Serang, from the two operating chain) of 18.5 hectares, steel industry of 10 hectares and construction
estates, the potential land to be developed is huge. company of 5.1 hectares. The other smaller sales deal were composed by
bearing , glass, pipe and aluminum industries.
During Q1 2019, none of the operating industrial estates reported additional
land become new supply. Total supply remains unchanged this quarter. Starting the year with substantial number of land transaction, the market
looks vibrant over the whole year. Some industrial estates that have been
Industrial Land Stock Status in Some Active and Future Industrial quite active in recording transaction thus far did not report sales this
quarter. Nonetheless, the outlook is quite positive with several potential
Estates
deals are in the pipeline.
Total amount of transaction this quarter is 109.4 hectares, the highest since
2015. Of this total deal of transaction, about 7.8 hectares are leasing
transaction which is quite surprising because we have not seen a significant
amount involving leasing transaction over the last few years.
Three estates in Karawang reported transactions in Q1 2019, the biggest

was recorded by KIIC with a total of 5.7 hectares. A new Japan-based
automotive part industry acquired about 5 hectares while the remaining
smaller deal was concluded by a collaboration of Japanese and local trucking
company. Another considerable amount of sales occurred at the new
industrial estate, Karawang New Industrial City that updated two deals
concluded by China-based companies including a construction engineering
company taking 1.2 hectare and cosmetic packaging that bought 2.3
hectares. Meanwhile, Kota Bukit Indah by Besland Pertiwi which specialising
in renting land and industrial building revealed a leasing deal with Japan-
based auto-parts company for a building sits on 0.53 hectares.
2
After having recorded fairly large transaction last quarter, Bekasi registered deals were concluded from local food, pharmacy, automotive and packaging
a lower amount of deals in Q1 2019. GIIC sold two land plots to food companies in Q1 2019, totaling about 4,000 sq m
industries with a total land size of 19 hectares. In our record so far, only
The abovementioned leasing deals involving a total of 7.8 hectare were
Delta Silicon reported a few transactions. Despite having 11 transactions,
mainly concluded at CCIE in Bogor by company producing building material
total deals in Delta Silicon composed only around 1.81 hectares by small
(concrete panel). This local and new companies concluded leasing deal of 5.9
transactions. Most of the deals came from individual investors that expand
hectares. Other than that, a well-known international logistics and freight
their warehouse business for rent. Other deals are made by trading
forwarding company expanded their presence by renting about 3,780 sq m.
companies that sell variety of products like metal and machinery.
In our record this has been the highest leasing deal in one quarter concluded
by CCIE. Apart from leasing activity reported by Kota Bukit Indah mentioned
About the same size and pattern with Delta Silicon, Griya Idola in Tangerang
earlier, another leasing transactions were reported by KIEC in Serang. This
announced about six transactions with a total of 1.82 hectares from new and
industrial estate has been quite active in selling land, but this quarter they
expanding local companies. The deals were mainly done by printing,
only reported leasing deals of five warehouse buildings, each 2,000 sq m, to
electronic, bearing and cosmetics companies. The biggest land transaction
one petrochemical industry.
came from a companies producing speaker, about 1.5 hectares while the
others deal only involved small size of between 300 and 1,600 sq m. Types of Active Industries Involved in the Transactions in Q1 2019
Others Automotive
In Bogor, Sentul Industrial Estate continue to sell land but in smaller number Construction/Eng
0% 5%
ineering
compared to what they achieved in the previous quarter. About five small 6%
Cosmetics
Land Absorption in Q1 2019 0%
Building Material
Modern Cikande 7%
Greenland International Industrial Centre
Food
CCIE Textiles 34%
KIIC 27%
Karawang New Industry City

Jababeka
Printing
Griya Idola
Steel-related 0%
Delta Silicon
9% Pharmaceutical
Krakatau Industrial Estate Cilegon 0%
Machinery Electronics
Kota Bukit Indah (Besland Pertiwi) 4.23 1%
Logistics/
Sentul Industrial Estate Warehousing Chemicals
Metal
Packaging 1% 2%
0%
0 10 20 30 40 50 60 70 2%
Source: Colliers International Source: Colliers International
3
Thus far, textile industry still composed the biggest portion of sales by tenant Colliers do not see any chance for price adjustment until the end of 2019,
category, however, we believe that this is not going to be a representative particularly because landlord would focus on accelerating sales amount this
figure to describe the market for the full year. For some periods we have not year.
seen that textile industry dominate the market. The other active sector that
potentially become the main driver of industrial demand is food sector which Greater Jakarta Industrial Land Prices
recorded about 23% of the total sales this quarter.
Annual Industrial Land Absorption

1,400
1,200
1,000
Hectares
800
600
400
200
0
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
Q1 2019
Serang Bekasi Karawang Tangerang Bogor
Rental Rate
Source: Colliers International There is no change in rental tariff during the quarter. Rent of industrial
Land Prices building in Bogor remains between IDR45,000 – 60,000/sq m/month
depending on the building specification. In Karawang, rental tariff for
The real land price (in rupiah denomination) in Bogor, Tangerang and Serang industrial building remains at IDR50,000 to 72,000/sq m/month. In Bekasi
has been relatively stable qoq, the upward adjustment seen in Q1 2019 is we have seen that industrial building is offered at between IDR50,000 and
primarily due the strengthening of rupiah against the US dollar. None of the 60,000, in some locations, it could reach IDR70,000 to 80,000/sq m/month.
industrial estates operating in Bogor, Tangerang and Serang is quoting price Rental tariff for industrial building in Tangerang is generally offered at
in USD dollar therefore, the increase in mainly due to the exchange rate IDR50,000 – 55,000 while in Serang it is almost similar, at IDR55,000/sq m
movement. /month
On contrary, industrial land prices in Karawang and Bekasi dropped about
6% from last year, primarily in response to the slowdown in sales. Two newly Maintenance Costs
operating industrial estates in Karawang set their price in the range of The maintenance tariff in Q1 2019 is steady compared to last year. We
USD140 – 150 / sq m, lower than the already established estates in region of witness that there is no change in the tariff, but in some industrial
around USD170 – 180 / sq m. estate,tariff varies depending on the size of the land.
4
Greater Jakarta Industrial Maintenance Costs
Industrial Land Prices and Maintenance Costs (in USD equivalent)

Land Prices (/sq m) Maintenance Costs (/sq
m/month)
Lowest Highest Average Lowest Highest Average
Bogor 212.18 335.95 274.06 0.06 0.06 0.06
Tangerang 141.45 240.10 182.71 0.03 0.08 0.06
Bekasi 150.00 170.00 161.67 0.05 0.10 0.06
Karawang 169.74 226.32 203.69 0.06 0.08 0.07
Serang 141.45 162.67 152.06 0.03 0.05 0.05
Note: USD1.00 = IDR14,139 (average during Q1 2019)
5
Ferry Salanto Ferry Salanto
Senior Associate Director| Research | Indonesia Senior Associate Director| Research | Indonesia
+62 21 3043 6730 +62 21 3043 6730
Ferry.salanto@colliers.com Ferry.salanto@colliers.com



Q1 2019 ColliersQuarterly Jakarta AllSectors

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COLLIERS QUARTERLY OFFICE | JAKARTA | RESEARCH | Q1 2019 | 2 APRIL 2019

SUPPLY WILL DEFLATE NEXT YEAR MAINTAINING OCCUPANCY LEVEL

Source: Colliers International

In 2019, Jakarta continues to see a substantial amount of new office space of

Office Spaces Offered for Lease

Millenium Centennial Tower Sudirman 93,588 For Lease Under Construction

Graha Makmur Gatot Subroto 10,345 For Lease Under Construction

Thamrin Nine Thamrin 97,500 For Lease Under Construction

RDTX Place (Chitaland) Satrio 90,000 For Lease Under Construction

Daswin Tower Rasuna Said 100,000 For Lease Under Construction

CBD Occupancy Rates by Building Grade CBD Occupancy Rates by Sub-Market

Satrio 76.0% 81.4% 84.3% 2.9% 8.3%

Source: Colliers International

CBD Average Asking Rents (in IDR/sq m/month) by Building Grade

Q1 2018 Q4 2018 Q1 2019 QOQ YOY

Premium 459,110 358,684 368,068 2.6% -19.8%

Grade A 311,055 292,119 313,241 7.2% 0.7%

Grade B 226,399 229,726 229,230 -0.2% 1.3%

Grade C 175,445 179,605 174,127 -3.1% -0.8%

Source: Colliers International

Outside the Central Business District (CBD)

About Colliers International Group Inc.

Copyright © 2019 Colliers International

Hern Rizal Gobi

DEMAND FOR APARTMENT HAS

Regarding supply projection, we have made some revisions from 2019 to

South Jakarta 88.3% 86.6% 86.4% -0.2% -1.9%

Non-prime Area 84.0% 86.3% 86.8% 0.5% 2.8%

Projects completion during Q1 2019

Name of development Location Region Developer # Units

Branz Simatupang (2 towers) TB. Simatupang South Jakarta Tokyuland 381

Newly launched projects in Q1 2019

Branz Mega Kuningan Mega Kuningan CBD 2023 IDR53-54 million

Apartment Name Location Region Developer #Units Status

Jl. Penjernihan I Kav.1

Apartment Name Location Region Developer #Units Status

45 Antasari (2 Tower) Antasari South Jakarta Cowell Development 1,924 Under-construction

PT Adicipta Graha Kencana

Green Sedayu Apartment (Tower

Apartment Name Location Region Developer #Units Status

PT Griya Karunia Sejahtera

Jl. Kebon Jeruk Raya,

Apartment Name Location Region Developer #Units Status

57 Promenade Jl. Kebon Melati CBD Intiland 496 Under-construction

Fatmawati City Center - Corona Park Suite

Apartment Name Location Region Developer #Units Status

Jl. Arjuna Selatan No. 10, Kebon

Holland Village Cempaka Putih Central Jakarta 400 Under-construction

South Quarter Residence TB Simatupang South Jakarta 336 Under-construction

Arumaya Residence TB Simatupang South Jakarta 262 Under-construction

Apartment Name Location Region Developer #Units Status

Jl. Tawakal Ujung Raya,

Source: Colliers International

About Colliers International Group Inc.

Copyright © 2019 Colliers International

(F&B) tenants, fast fashion

SOME STORES ARE UNDER FITTING

Source: Colliers International

Total retail supply in Jakarta remained at 4.7 million sq m, with no new

production base to Indonesia. Inone offers a variety of lifestyle products

Turning to the digital era has significant impact

Service charge moved slowly in Q1 2019. Most landlords still refused to

Average rents and service charges in JaBoDeTaBek