Colliers JKTPropertyMarketReport

Research &
Forecast Report
4Q 2013
Jakarta
1st Quarter
| Office
2015
Jakarta Property Market Report
Accelerating success.
Highlights
Office Sector increasing number of new stores by retailers already doing
business here. Upper-class shopping centers are generally
A substantial amount of new office space of around 600,000 sq m enjoying high occupancy while on the contrary, middle-low
is projected to come on the market this year in the CBD. This will class shopping centers experienced a moderate decline in
be the historic high annual supply. Given the immense supply, occupancy. Similarly, only upper class shopping malls registered
the occupancy rate in the CBD should drop by the end of the year a QoQ growth in rents of 3.4% to IDR921,237/sq m/month.
which will most likely put downward pressure on rents. The
annual growth of average rents for grade A and premium
buildings has already been reduced from 33.6% in 2013 to only Hotel Sector
3.9% in 2014 for rupiah denominated buildings. In the same Jakarta is anticipating additional rooms from the operation of 39
period, the growth of average rental rate for buildings quoting US new hotels providing 6,963 rooms during 2015 2018. The new
dollars was 23.7% in 2013 and rents even dropped by -0.6% in supply during that period represents 21.3% of the cumulative
2014 and even further decreased by -1.1% in 1Q 2015. hotel rooms as at the end of 2014. The YoY occupancy
performance of hotels in Jakarta was down from 64.3% to 53.7%
Apartment Sector mainly because of the high hotel room usage for political
activities during election campaigning during the early months
The wait and see attitude caused by national elections in 2014 in 2014. However, the increased demand was offset by a new
and a slowing economy as a result of the strengthening US dollar regulation that banned governments civil servants for holding
against local currencies in the Asia Pacific region reduced the meetings in hotels. This new government policy was subsequently
growth rate of apartment supply last year. With only half of the reversed in early April 2015. Likewise, the overall ADR (Average
total projected supply in 2014 being materialized (around 10,000 Daily Rate) was also down YoY, from USD98.15 to USD94.09.
units), 2015 will become a tougher market as 29,451 units are
projected to be completed. As a result of the softening apartment
market, prices of apartments only climbed modestly by 2.7% Industrial Estate Sector
QoQ slightly lower than in the previous quarter of 3.1%. There were no significant change in the industrial market, but
Meanwhile, the absorption rate of future apartment projects was 82.18 hectares of land which were transacted this quarter has
down by 3.7% to 68.4% QoQ. already equaled 26% of last years total sales. This suggests that
the industrial market has been on track to follow sales trends of
Retail Sector 2013 and 2014. As it was seen in the last period of 2014, the
overall sales during the quarter were dominated by transactions
The occupancy rate of the retail sector in Jakarta has been with consumer goods and logistics companies. Several industrial
stabilizing and grew to 86.8% in 1Q 2015, thanks to the retail estates with limited land still continue to introduce new higher
moratorium in DKI Jakarta which limits the issuance of permits prices, but prices in general are flat.
for new shopping centers. Going forward, the retail market is
anticipating the entrance of new foreign retailers and an
2 Research & Forecast Report | 1Q 2015 | Highlight | Colliers International

OFFICE SECTOR After very limited additional office space last year, two office
buildings in the CBD are officially opened, namely Sahid
Sudirman and Gran Rubina which together contributed 169,938
sq m of new office space. The CBD further anticipates around
Office Space 400,000 sq m of office space projected to be in operation before

the end of 2015. The projected additional office supply will be
Offered for Lease

contributed by eight office buildings that as of 1Q 2015 are in the
finishing stages of construction.
Apart from the continued influx of new office space, there will
a reduction in the total office space. Two office buildings in
Supply Sudirman are being demolished as of 1Q 2015. Jalan Sudirman,
as the main thoroughfare in the CBD, is undergoing a mega-MRT
CBD Office Cumulative Supply project to alleviate worsening traffic problems, particularly in the
commercial area. With the MRT project, DKI Jakarta Government
8,000,000 allow land owners along the MRT route for higher plot ratio, With
very expensive land prices in the area and given the higher plot
7,000,000 ratio, several old buildings are being considered for demolition
and replaced with taller office buildings. By eliminating these
6,000,000
two office buildings, the cumulative office supply only grew 2.9%
5,000,000 YoY to 4.78 million sq m as of 1Q 2015.
sq m
4,000,000 In the CBD, except Jalan Thamrin, all sub-markets will contribute
new office buildings in 2015. Jalan Sudirman will lead in terms of
3,000,000 both number of office buildings (with three office buildings) and
area of office space (43% of annual supply in 2015). Gatot Subroto
2,000,000
is one active sub-market with additional space of 130,000 sq m
1,000,000 from two office buildings in 2015.
0 With a total projected 260,500 sq m of office space in 2015, a new

office building in Jalan Sudirman will have an area of around
2010
2017F
2012
2014
2011
2013
2019F
2015F
2018F
2016F
2015YTD
86,000 sq m. This indicates that the higher plot ratio in this main
corridor of the CBD has been implemented. Sahid Sudirman
Existing Supply Annual Supply tower (258 m in height), is the second tallest office building in
Source: Colliers International Indonesia - Research Jakarta after Wisma 46 (261.5 m in height). Sinarmas MSIG, a
future office building in Sudirman, will also be included in the
CBD Office Cumulative Supply Based on Area five tallest office buildings in Jakarta. Later, Jakarta will see an
office building with 70 levels situated around Jalan Thamrin that
8,000,000 is expected to be in operation in 2018.
7,000,000 Of all of the projected office buildings in 2015 - 2019, about 75% of
the 2.9 million sq m have started construction work. This means
6,000,000 that only 12 office buildings representing 816,500 sq m are still
in the planning stage as of 1Q 2015. Including newly operating
5,000,000
office buildings in 2015, the CBD will see around 500,000 sq m of
sq m
4,000,000 projected additional space per year up to 2019.
3,000,000
2,000,000
1,000,000
0
2010
2017F
2012
2014
2011
2013
2019F
2015F
2018F
2016F
2015YTD
Existing Supply Annual Supply

Source: Colliers International Indonesia - Research
3 Research & Forecast Report | 1Q 2015 | Office | Colliers International

Annual Future Office Space in the CBD In spite of the fact that the outside CBD regularly provides less
office space than the CBD, since 2010, additional office supply
in the outside CBD has been consistently above 100,000 sq m
1,000,000
per year. In 2015, it is expected that 334,206 sq m of additional
900,000 office space will enter the market. As of 1Q 2015, almost 43% of
800,000 the above supply has been in operation. South Jakarta will be
the most active area, contributing nine of the 12 projected office
700,000 buildings in 2015.
600,000
The outside CBD area will continue to provide office space at
sq m
500,000 least up to 2017. We expect to see additional supply in the outside

CBD of around 780,000 sq m in 2016 - 2017. Central and West
400,000
Jakarta will contribute about the same amount as South Jakarta
300,000 in terms of number of office buildings.
200,000
Annual Future Office Space in the Outside CBD
100,000
0 300,000
2015F 2016F 2017F 2018F 2019F

250,000
For Lease For Sale In Planning
200,000
Based on marketing scheme, offices for lease constitute 78.2%
of the cumulative supply as of 1Q 2015. It is projected that
sq m
150,000
additional supply of offices for lease will still dominate both
under-construction and in-planning projects. Excluding in-
planning projects, the total future additional space of offices for 100,000
lease in 2015 - 2019 is 1.23 million sq m with about 0.87 million
sq m of offices for sale.
50,000
Outside CBD Office Cumulative Supply

0
3,000,000 2015F 2016F 2017F 2018F 2019F

2,500,000
2,000,000 Almost 47% of future office buildings in the outside CBD

(excluding TB Simatupang) are projects in the planning stage
sq m
1,500,000 (no construction activity in the field). The projects under

construction are dominated by strata-title offices for sale.
1,000,000
500,000
0
2010
2017F
2012
2014
2011
2013
2019F
2015F
2018F
2016F
2015YTD


Cumulative Office Space in TB Simatupang Overall, the construction work of future office buildings in TB
Simatupang is still on schedule. TB Simatupang will see around
1,200,000 260,000 sq m of total projected additional supply in 2016 - 2017,
almost equal to the total supply in 2015 alone.
1,000,000
Cumulative Supply in the Outside CBD and TB
800,000 Simatupang
sq m
600,000 4,000,000
3,500,000
400,000
3,000,000
200,000
2,500,000
sq m
0 2,000,000
2010
2012
2017F
2014
2011
2013
2015F
2016F
2018F
2015YTD
1,500,000
1,000,000
Source: Colliers International Indonesia - Research 500,000
TB Simatupang continues to bolster its position as a secondary 0

commercial area after the CBD, particularly when the area is
2010
2017F
2012
2014
2011
2013
2015F
2018F
2016F
2015YTD
currently contributing more office space. As of this quarter,
four newly operating office buildings in South Jakarta are Outside CBD excluding TB Simatupang TB Simatupang
located in TB Simatupang and this is equal to the office supply Source: Colliers International Indonesia - Research
in 2014. The four office buildings located in the southern part
of TB Simatupang, are 18 Office Park, Plaza Oleos, AD Premier
and Metropolitan Tower. Together, these buildings contributed Annual Supply in the Outside CBD and TB Simatupang
142,678 sq m to bring the cumulative supply in TB Simatupang
to 739,343 sq m as of 1Q 2015. Another three office buildings in 300,000
TB Simatupang are projected to open in 2015, namely South
Quarter 1 and 2, and Graha MRA. These office buildings have 250,000
reached final stages of construction and are expected to bring
additional new office space of 237,234 sq m by the end of 2015,
200,000
almost three times the additional supply in 2014.
sq m
Annual Future Office Space in TB Simatupang 150,000
250,000 100,000
50,000
200,000
0
150,000
2010
2017F
2012
2014
2011
2013
2019F
2015F
2018F
2016F
2015YTD
sq m
Outside CBD excluding TB Simatupang TB Simatupang

100,000
50,000
0
2015F 2016F 2017F


New Supply Pipeline
projected
Office building projects name location SGA Marketing scheme status development
completion
CBD
2015 Sinarmas MSIG Sudirman 75,000 For Lease Under Construction

2015 The Noble House Office Tower Mega Kuningan 45,000 For Lease Under Construction
2015 AIA Center (Menara Selaras) Sudirman 47,000 For Lease Under Construction
2015 Cemindo Tower Rasuna Said 60,995 For Lease Under Construction
2015 Telkom Landmark Tower II Gatot Subroto 65,000 For Lease Under Construction
2015 Bank Muamalat Tower (Satrio Square) Satrio 24,600 For Lease Under Construction
2015 BTPN Tower (Bahana Office Tower) Mega Kuningan 50,000 For Lease Under Construction
2015 Wisma Mulia 2 Gatot Subroto 65,000 For Lease Under Construction
2016 Convergence Rasuna Said 36,367 For Lease & Sale Under Construction
2016 International Financial Center 2 Sudirman 50,000 For Lease Under Construction
2016 Menara Pertiwi Mega Kuningan 41,456 For Sale Under Construction
2016 Capital Palace (Office Tower @ ST Regis) Gatot Subroto 90,511 For Lease Under Construction
2016 Menara Palma 2 Rasuna Said 50,000 For Lease Under Construction
2016 Centennial Tower Gatot Subroto 100,000 For Sale Under Construction
2016 Ciputra World Jakarta 2 Satrio 70,000 For Lease & Sale Under Construction
2016 Satrio Tower Satrio 31,604 For Lease Under Construction
2016 The Tower Gatot Subroto 56,492 For Sale Under Construction
2016 Lippo Thamrin Office Tower Thamrin 16,500 For Sale Under Construction
2016 T Tower (BJB Tower) Gatot Subroto 24,000 For Sale Under Construction
2017 Mangkuluhur Tower Gatot Subroto 53,000 For Lease & Sale Under Construction
2017 Sequis Life Tower 2 Sudirman 80,000 For Lease Under Construction
2017 Gayanti City Gatot Subroto 25,000 For Lease In Planning
2017 Prosperity Tower @ Distict 8 Sudirman 71,545 For Sale Under Construction
2017 Treasury Tower @ District 8 Sudirman 139,000 For Sale Under Construction
2017 Sopo Del Tower A Mega Kuningan 80,000 For Lease & Sale Under Construction
2017 Sopo Del Tower B Mega Kuningan 40,000 For Lease Under Construction
2018 Sudirman 7.8 (ex Nugra Santana) Sudirman 52,000 For Sale In Planning
2018 SSI Tower (Graha Surya Intenusa) Rasuna Said 100,000 For Lease In Planning
2018 Mangkuluhur Tower II Gatot Subroto 50,000 For Lease In Planning
2018 Tower Two at The City Center Sudirman 39,204 For Sale Under Construction
2018 World Trade Center III Sudirman 70,000 For Lease Under Construction
2018 Icon Tower Sudirman 72,500 For Lease In Planning
2018 Tower 2 @ Ciputra World Jakarta 1 Satrio 70,000 For Lease & Sale Under Construction
2018 Astra Tower Sudirman 80,000 For Lease Under Construction
2018 Thamrin Nine Thamrin 97,500 For Lease Under Construction
2018 Chitaland Gatot Subroto 100,000 For Lease Under Construction
2019 Gran Rubina Tower 2 Rasuna Said 32,000 For Sale In Planning
2019 The Hundred Mega Kuningan 35,000 For Lease Under Construction
2019 SCBD Lot.10 (PCPD Tower) Sudirman 96,000 For Lease Under Construction
2019 World Capital Tower Mega Kuningan 72,000 For Sale Under Construction
2019 Tower Three at The City Center Sudirman 34,000 For Lease In Planning
2019 Tower 1 at Sampoerna Strategic Square Sudirman 43,000 For Sale In Planning
2019 Tower 2 at Sampoerna Strategic Square Sudirman 118,000 For Lease In Planning
2019 Redevelopment at Sequis Center Sudirman 100,000 For Lease In Planning
2019 Redevelopment eX Thamrin 150,000 For Lease In Planning
continued

New Supply Pipeline
projected
Office building projects name location SGA Marketing scheme status development
completion
continuation
oUTSIDE CBD EXCLUDING TB SIMATUPANG
2015 Menara Sentraya Blok M 52,072 For Sale Under Construction

2015 ST Moritz Office Tower Puri Indah 19,500 For Sale Under Construction
2015 The Suites Pantai Indah Kapuk 13,200 For Sale Under Construction
2015 Maxima Tower Kelapa Gading 8,000 For Lease Under Construction
2015 Nariba Office Suites Mampang 4,200 For Lease Under Construction
2016 Puri Indah Financial Tower Puri Indah 38,500 For Sale Under Construction
2016 Gallery West Kebun Jeruk 29,000 For Sale Under Construction
2016 L'Office Pasar Minggu 41,597 For Sale Under Construction
2016 MNC Tower II Kebon Sirih 20,000 For Lease Under Construction
2016 Sky 18 Tower Pasar Minggu 27,500 For Sale Under Construction
2016 Soho Capital Slipi 36,000 For Sale Under Construction
2016 Altira Sunter 40,000 For Sale Under Construction
2016 BKP Office Tower Sunter 16,000 For Lease Under Construction
2016 Tamansari Parama Wahid Hasyim 10,800 For Sale Under Construction
2017 Soho Pancoran Pancoran 30,000 For Sale Under Construction
2017 Jakarta Box Tower Kebon Sirih 36,000 For Lease Under Construction
2017 Lippo Tower Holland Village Cempaka Putih 27,000 For Sale In Planning
2017 One Tower Kemayoran 21,400 For Sale In Planning
2017 Ciputra Business District Kemayoran Tower 1 Kemayoran 40,000 For Sale In Planning
2017 Ciputra Business District Kemayoran Tower 2 Kemayoran 40,000 For Lease In Planning
2017 Ciputra International Puri 1 Phase 1 Puri 15,000 For Lease In Planning
2018 Kota Kasablanka Office Tower 2 Casablanca 90,000 For Lease In Planning
2018 Ciputra International Puri Phase 2 Puri 15,000 For Lease In Planning
2018 Ciputra Internatinal Puri 2 Phase 3 Puri 15,000 For Lease In Planning
2018 Summarecon Tower Slipi 70,000 For Lease In Planning
TB SIMATUPANG
2015 Graha MRA 13,000 For Lease Under Construction

2015 South Quarter Tower 1 40,778 For Sale Under Construction
2015 South Quarter Tower 2 40,778 For Lease Under Construction
2016 South Quarter Tower 3 40,778 For Lease Under Construction
2016 Zuria 6,584 For Lease Under Construction
2016 Cibis Tower 60,800 For Lease Under Construction
2017 Beltway Office Park Tower 4 30,839 For Lease Under Construction
2017 The Sima 60,000 For Lease Under Construction
2017 Arkadia Tower G 30,000 For Lease In Planning
2017 The Manhattan Square Tower 2 39,375 For Lease & Sale In Planning

Demand and Occupancy Occupancy Rate in All Categories of Office Building
in the CBD
CBD
100%
1Q 2014 YoY 1Q 2015 QoQ 4Q 2014
96%
96.5% 93.6% 95.7%
Source: Colliers International Indonesia - Research 92%
88%
Number of Space Absorbed and Occupancy in the
84%
CBD
80%
5,000,000 100%
76%
4,500,000 90%
72%
4,000,000 80%
68%
3,500,000 70%
64%
3,000,000 60%
2,500,000 50% 60%
sq m
2,000,000 40% 1Q 2014 2014 2015YTD
1,500,000 30% Premium Grade A Grade B Grade C

1,000,000 20%
500,000 10%
All in all, the office market still expects demand from the
0 0% finance-related industries including insurance and banking,
which still require large spaces. The growing information and
2010
2012
2014
2011
2013
2015YTD
technology industries, such as telecommunications will also

help create office demand in the CBD. Moreover, the policy of
Space Absorbed Vacant Space Occupancy the new government to accelerate the countrys infrastructure
Source: Colliers International Indonesia - Research and energy sectors, will hopefully provide opportunities for the
office space business from tenants like consultants or suppliers
Although the office supply was very limited in 2014, the who support those industry sectors.
occupancy rate in the CBD dropped from 96.5% in early 2014 to
95.7% at the end of 2014. With new office buildings beginning The huge supply projected for the next couple of years will
operations this quarter, the occupancy in the CBD fell to 93.6%. create a challenge for the office business. As of 1Q 2015, the
The decreasing trend in the occupancy rates would indicate that total projected supply for 2016 has yet to report pre-committed
more tenants are now considering relocation to the outside CBD. absorption. Given this situation, we believe that the projected
occupancy will continuously decline in the CBD.
A general situation whereby substantial demand is largely
driven by the mining, oil and gas sectors is now becoming less.
Tapering business conditions and high asking rents are factors
which likely cause tenants to consider cutting their operational
expenses.
About 62% of the total remaining space in the CBD as of 1Q

2015 was contributed by vacant spaces at Premium and Grade A
office buildings. Increasingly high asking base rent at Premium
and Grade A office buildings, again, has left more vacant space,
and caused the occupancy of that building category to decrease
by 3.7% QoQ to 92.1%.

Pre-Commitment Demand for Future Office Buildings Number of Space Absorbed and Occupancy in the
for Lease in the CBD Outside CBD
3,000,000 100%
90%
2,500,000
2016F 80%
70%
2,000,000
60%
sq m
1,500,000 50%
40%
1,000,000
2015F 30%
20%
500,000
10%
0 0%
0 100,000 200,000 300,000 400,000 500,000
2010 2012 2014
sq m
Space Absorbed Vacant Space Space Absorbed Vacant Space Occupancy
Source: Colliers International Indonesia - Research Source: Colliers International Indonesia - Research
Commitment Demand for Future Office Buildings

Outside CBD for Lease in the Outside CBD
1Q 2014 YoY 1Q 2015 QoQ 4Q 2014
94.6% 90.9% 93.2%
2016F
The occupancy rates in the outside CBD showed a similar trend
to the CBD, declining 2.3% QoQ to 90.9% as of 1Q 2015. Large
vacant spaces were largely contributed by office buildings
in South Jakarta. As of 1Q 2015, 62.1% of the 233,921 sq m of
remaining space in the outside CBD was in South Jakarta. Of
that, 72.9% was found at newly operating office buildings in 2014
- 2015.
2015F
The occupancy rates of office buildings in South Jakarta, which
was recorded at 88.9%, experienced a decreasing trend by 5.2%
QoQ. In other areas, the growth of occupancy was relatively flat
QoQ and only West Jakarta recorded an average occupancy of
90.7% as of 1Q 2015. The overall West Jakarta office market 0 30,000 60,000 90,000 120,000 150,000
registered a vacant space reduction of around 20% QoQ. sq m
Officially operating committed tenants at new office buildings Space Absorbed Vacant Space
have helped the occupancy in West Jakarta climb 2% over the Source: Colliers International Indonesia - Research
previous quarter.

TB Simatupang Asking Base Rent
1Q 2014 YoY 1Q 2015 QoQ 4Q 2014
96.2% 84.3% 92.8% CBD
Source: Colliers International Indonesia - Research All rental numbers presented in this report are asking rental
rates as published by developers. Tenants are becoming more
Due to four new office buildings officially operating, the sensitive to the increase in the rental rates recently particularly
occupancy rate in TB Simatupang dropped significantly by 8.6% given the fact that vacant office space is quite abundant and
QoQ to 84.3% as of 1Q 2015. This is the first time since 2002 that the economy is slowing down. Amidst tenants concern over
the occupancy in TB Simatupang was below 90%. However, high the high occupancy costs, the average rental rate in rupiah was
pre-committed demand for office buildings in 2015 is expected IDR257,543/sq m/month as of 1Q 2015 for all classes of office
to return the occupancy rate to its higher level. Although newly buildings, posting an upward adjustment of 1.8% QoQ.
operating office buildings in 2015 caused occupancy to decline,
those new office buildings have secured a 50% occupancy rate Some office buildings charging in rupiah lowered their rents
on average when beginning operations. Overall, pre-committed from the previous quarter. However, increasing rents at office
occupancy for all office buildings in 2015 has reached 44.1% as buildings with large vacant spaces have caused the overall asking
of 1Q 2015. base rents to climb. As of 1Q 2015, at least two office buildings
holding vacant spaces of more than 15,000 sq m raised the rent
Number of Space Absorbed and Occupancy in TB by IDR50,000 to 80,000/sq m/month.
Simatupang The asking rents in US dollars showed almost similar growth of
2.0% QoQ, to USD37.58/sq m/month as of 1Q 2015.
700,000 100%
Office buildings charging in US dollars and with higher rents
90%
600,000 above the market average generally having large vacant spaces.
80% As of 1Q 2015, 58.8% of the total remaining vacant space was
500,000 found at office buildings charging USD40.00/sq m/month and
70%
above. Nevertheless, some significant adjustment was made by
60% office buildings charging in US dollars by lowering their rents
400,000
sq m
50%
between USD2.00 and 10.00 as of 1Q 2015. These adjustments
300,000
caused office rents to climb only modestly QoQ.
40%
Similar to buildings charging in US dollars, of the total vacant
200,000 30%
space supplied by office buildings charging rent in rupiah, 46.9%
20% is available at office buildings charging rent above the market
100,000 average rent. This resulted in a higher average rent in rupiah.
10%
0 0% In the high specifications class of buildings charging in US

2010 2012 2014
dollars, the asking base rent of Premium and Grade A office
buildings in the CBD continued to decrease. As of 1Q 2015, the
Space Absorbed Vacant Space Occupancy average asking rent was USD42.24/sq m/month, down modestly
Source: Colliers International Indonesia - Research by 1.1% QoQ. It has been three consecutive quarters since 2H
2014 that the average asking base rent of Premium and Grade A
office buildings has decreased QoQ.
The average asking rental rate for Premium office buildings only
was USD46.72/sq m/month as of 1Q 2015, down significantly
QoQ, 4.9%.

Average Asking Rental Rates Average Asking Rental Rates Based on Grade
in Rupiah in Rupiah
IDR 300,000 IDR 600,000
IDR 550,000
IDR 250,000 IDR 500,000
IDR 450,000
IDR 200,000 IDR 400,000
IDR 350,000
IDR 150,000 IDR 300,000
IDR 250,000
IDR 100,000 IDR 200,000
IDR 150,000
IDR 50,000 IDR 100,000
IDR 50,000
IDR 0 IDR 0
2010 2011 2012 2013 2014 2015YTD Grade A Grade B Grade C
in US Dollar in US Dollar
USD 60.00 USD 60.00
USD 50.00 USD 50.00
USD 40.00
USD 40.00
USD 30.00
USD 30.00
USD 20.00
USD 20.00
USD 10.00
USD 10.00
USD 0.00
2010 2011 2012 2013 2014 2015YTD USD 0.00
All Classes Premium Premium Grade A Grade B Grade C

Outside CBD Average Asking Rental Rates in the Outside CBD
The average asking rental rate in the outside CBD showed in Rupiah
modest growth QoQ at office buildings charging in both rupiah
and US dollars. As of 1Q 2015, the asking base rent registered an IDR 250,000
average of IDR191,603/sq m/month, while in US dollars it was
USD21.47/sq m/month.
IDR 200,000
The most expensive office locations in the outside CBD area
remain in Central and South Jakarta. The asking base rent in
Central and South Jakarta was between IDR205,974 and 215,172/ IDR 150,000
sq m/month. In fact, West Jakarta showed significant growth in
the rental rates, at 6.2% QoQ, more than in other areas. Several
office buildings that have been operating since 2013 - 2014 have IDR 100,000
had a significant impact on the overall asking base rent in West
Jakarta, raising it to IDR197,611/sq m/month.
IDR 50,000
The least favourite office locations, i.e. North and East Jakarta
recorded the lowest asking base rents at between IDR106,736
IDR 0
and 108,729/sq m/month as of 1Q 2015.
2010 2011 2012 2013 2014 2015YTD
Being the secondary business area after the CBD, TB Simatupang
(which is part of South Jakarta) helps maintain an asking base Outside CBD excluding TB Simatupang TB Simatupang
rent in South Jakarta to register at the highest level. Although the Source: Colliers International Indonesia - Research
QoQ growth of asking base rents was low, four office buildings
newly operating in early 2015 have raised the asking rent to
IDR228,822/sq m/month and USD21.71/sq m/month. in US Dollar
USD 25.00
USD 20.00
USD 15.00
USD 10.00
USD 5.00
USD 0.00
2010 2011 2012 2013 2014 2015YTD
Outside CBD excluding TB Simatupang TB Simatupang

Service Charge The Range of Service Charge Cost in the Two Main
Areas in Jakarta
The gap between service charges in the CBD and outside CBD
tapered. Last year, the service charge in the outside CBD was IDR 100,000
around 20% less than in the CBD. As of 1Q 2015, the service charge
(both IDR and US dollars) in the outside CBD was IDR65,498/
sq m/month, up 20.1% QoQ. Office buildings newly operating IDR 80,000
during 2013 - 2014 had maintenance costs between IDR45,000
and 85,000/sq m/month. Currently, most of the new buildings
in the outside CBD continue to improve building service quality
IDR 60,000
and facilities. Moreover, some office buildings, primarily in TB
Simatupang, are classified as green buildings. In TB Simatupang
alone, the average service charge was IDR59,340/sq m/month,
IDR 40,000
and USD5.93/sq m/month.
Service charges in the CBD were IDR92,173/sq m/month as of

1Q 2015. Compared to the outside CBD, currently it is 28.9% IDR 20,000
higher than in the outside CBD. Based on building grade, service
charges at Premium and Grade A office buildings in the CBD
were IDR103,802/sq m/month. Seven Premium and Grade A IDR 0
office buildings in the CBD had service charges of IDR90,000/sq
CBD Outside CBD
m/month and above during the reviewed quarter.
Service Charges of Office Buildings in Jakarta

IDR 80,000
IDR 70,000
IDR 60,000
IDR 50,000
IDR 40,000
IDR 30,000
IDR 20,000
IDR 10,000
IDR 0
2010 2011 2012 2013 2014 2015YTD
CBD Outside CBD

Although service charges continued to increase, around 35% of

office buildings, both in the CBD and the outside CBD still had
service charges below IDR50,000/sq m/month.

Strata-title Office Annual Supply and Take-up Rates of Strata-title
Office Buildings in the CBD
Average Asking Price of Strata-title Office Space 200,000
per Sq m in Jakarta 180,000
160,000
IDR 60,000,000
140,000
120,000
IDR 50,000,000
sq m
100,000
IDR 40,000,000 80,000
60,000
IDR 30,000,000 40,000
20,000
IDR 20,000,000 0
2011
2013
2008
2009
2015YTD
2010
2012
2014
IDR 10,000,000
Annual Supply Annual Take-up

IDR 0
2010 2011 2012 2013 2014 2015YTD
CBD Outside CBD exclude TB Simatupang TB Simatupang Pre-Committed Demand of Future Strata-title Office
for Sale in the CBD
The CBD will see a large amount of additional office space for sale
in 2015 - 2018, starting with the operation of Gran Rubina and 2018F
Sahid Sudirman, which brought the cumulative supply of strata-
title offices in the CBD to 986,767 sq m as of 1Q 2015. At least
another 14 strata-title office buildings will provide 849,564 sq m
in the CBD up to 2018. The majority of office buildings are under 2017F
construction and are expected be completed as scheduled.
The high commitment of office transactions has kept the average

2016F
take-up rate at 97.6% as of 1Q 2015. Despite dropping QoQ,
the take-up rate will bounce back due to the fact that there
will be no new additional supply of strata-title office space for
sale in the remainder of 2015. During this quarter, some future 2015F
strata-title office buildings projected to be in operation in 2016
and 2017 have been fully absorbed, which helped bring the
pre-commitment sales to 38 and 61%, respectively. These pre- 0 100,000 200,000 300,000 400,000
commitment levels are expected to keep the projected take-up sq m
rate at a high level in the future.
Space Absorbed Space Unabsorbed
In this quarter, the average asking price of vacant space in

strata-title office buildings in the CBD was IDR46.9 million/sq
m. This suggests a lower price QoQ because some newly under-
construction strata-title office buildings, due to their location,
offer a launch price lower than the market average. With less
vacant space and no newly launched strata-title buildings
offered in US dollars during this quarter, the office space price
has grown by 5.4% QoQ to USD4,492/sq m.

With no additional strata-title office space, the take-up rate in All newly operating strata-title offices are located in TB
the outside CBD (excluding TB Simatupang) stayed at 94.1% as Simatupang, bringing 134,840 sq m of additional space for sale.
of 1Q 2015. The projected take-up rate in 2015 - 2016 is expected This relatively large amount of space somewhat decreased the
to be quite high in the outside CBD where the pre-committed take-up rate in TB Simatupang by 3.5% QoQ to 89.2% as of 1Q
absorption of office buildings in those years has reached 60% as 2015. Asking prices of strata-title space in this area rose by 13.8%
of now. The high take-up rates of both existing and future supply QoQ to IDR32.2 million/sq m for buildings charging in rupiah.
has raised the asking prices in the outside CBD to an average of The influx of newly operating strata-title offices is one of the
IDR30.3 million/sq m, up 10.3% QoQ. causes for the price increase during the quarter. For buildings
charging in US dollars, the average asking price was USD3,500/
Annual Supply and Take-up Rates of Strata-title sq m.
Office in the Outside CBD
250,000
Concluding Thoughts
A more conducive political situation is expected to help
200,000
accelerate an increase in occupancy to catch up the projected
demand in the years ahead. More implemented government
150,000 programmes are expected to invite more investors to come and
sq m
bolster the absorption of office space.
100,000 Less absorption than projected QoQ will put pressure on asking
rents. This will likely cause a weakening of the average asking
rent, at least it will be relatively flat during 2015.
50,000
0
2008
2009
2010
2012
2014
2011
2013
2015YTD
Cumulative Supply Cumulative Take-up

Pre-Committed Demand of Future Office for Sale in

the Outside CBD
2017F
2016F
2015F
0 50,000 100,000 150,000 200,000 250,000

sq m
Space Absorbed Space Unabsorbed

Apartment Sector remaining stock is distributed in South Jakarta, CBD area and
Central Jakarta at 21.1%, 15.7% and 13.2%, respectively, while
East Jakarta had a mere 6.2% of the total inventory.
The first quarter of the year began with optimism among

Apartment for Strata-title developers as they launched several new apartment projects.
Compared to the same quarter last year, there were 7,276
newly-introduced and launched units, 115% higher than in the
Supply same period last year. Demand for apartments in Jakarta has
Commencing in 2015, the cumulative supply of apartment been notably strong during the last three years, evidenced by
units in Jakarta grew at a moderate pace. The apartment market almost all new completed apartment projects achieving more
received 3,255 new units, up by 2.3% QoQ, from seven projects than a 90% sales rate. Apartment units are still perceived as an
comprising four brand new projects and three extension towers. investment tool as they provide capital gains of around 10 - 25%
These 3,255 units, or 11% of the total projected 29,451 new units (if bought at the initial offering) and rental yield expectations of
that will be completed this year, are scattered in all areas of around 6 to 8% per year.
Jakarta, except the CBD. Of the total supply in this quarter, 38%
The reform of Indonesias fuel subsidy policy will have a positive
is located in South Jakarta, while the remaining portions are
impact on the property sector as the government aims to allocate
located in North Jakarta (25%), East Jakarta (22%), West Jakarta
the budget to more productive uses, such as improvements in
(11%) and Central Jakarta (6%). Overall, with the addition from
infrastructure. The acceleration of infrastructure projects will
newly-completed projects, the total existing stock of strata-title
expand the economy, in line with the governments target of a
apartments in Jakarta rose to 146,300 units. By location, the
5.5% GDP growth this year, an increase 0.5% from the growth in
non-prime areas (North Jakarta and West Jakarta) dominate the
2014.
market with 22.2% and 21.6% of the total stock, respectively. The
List of Completed Projects During 1Q 2015

Name of development location region developer no. of units
Belmont Residence (Tower Montblanc) Jl. Meruya Ilir West Jakarta Gapura Prima 350
The Royal Springhill (Lotus Tower) Jl. Spring Hill Residence Kemayoran Central Jakarta Springhill Golf Group 192
Titanium Square Jl. Raya Bogor, Pasar Rebo East Jakarta PT Titanium Property 725
Northern Ancol Residence Ancol North Jakarta Jaya Ancol 800
La Venue - South Tower Jl. Pasar Minggu South Jakarta PT Bintang Rajawali (Sinar Mas Group) 341
Botanica Apartment Simprug, Kebayoran Baru South Jakarta Pikko Group 626
Woodland Park (Trambesi tower) Jl. Kalibata Raya South Jakarta PT. Pardika Wisthi Sarana 221
Newly-Introduced Apartment During 1Q 2015

Expected
estimated price/ No. of
Name of development location region completion remarks
sq m* Units
time
South Hill Jl. Denpasar Raya CBD 2018 IDR37 - 39 million 611 Pre-sales
Green Pramuka (Nerine Tower) Jl. Pramuka Central Jakarta 2017 IDR16.7 million 1,000 Launched
Podomoro Park Jl. I Gusti Ngurah Rai East Jakarta 2018 IDR18.5 million 3,000 Introduced (NUP system **)
The Hamilton Jl. Teuku Nyak Arief South Jakarta 2017 IDR49.5 million 112 Introduced (NUP system**)
Pakubuwono Spring Jl. Teuku Nyak Arief South Jakarta 2018 IDR51 million 545 Launched
La Terrasse Jl. Deplu Raya No.12 South Jakarta 2018 IDR37 million 111 Launched
Branz Simatupang (2 tower) Jl. TB Simatupang South Jakarta 2018 IDR28 million 381 Introduced
Synthesis Residence Kemang Jl. Ampera Raya South Jakarta 2018 IDR29.5 million 1,100 Introduced (NUP system**)
19 Avenue (Tower B) Jl. Daan Mogot West Jakarta 2017 IDR10.5 million 416 Launched
Notes:
*Price excludes 10% VAT
**NUP (Indonesian term for Nomor Urut Pemesanan) or also known as priority pass is a new marketing strategy commonly applied by reputable developers to gauge the interest
of potential buyer in the initial offering
16 Research & Forecast Report | 1Q 2015 | Apartment | Colliers International

As of 1Q 2015, there are 7,276 units at either newly-introduced The Distribution of Future Apartment Developments
or newly-launched projects, which are mainly located in South in Several Regions of Jakarta
Jakarta, representing 53% of the total units. Among the districts
in South Jakarta, TB Simatupang remains in the spotlight as can 35,000
be seen by the growing number of office developments that drive
the growth of apartment development in the surrounding area. 30,000
The supply of new apartment units during 2015 is projected to be 25,000

substantial, i.e. 29,451, should all projects be completed. All in
all, the total projected units that will come into the market from 20,000
2015 to 2018 will be 80,881 new units, mainly supplied in West
Jakarta with 23% of the total supply, followed by East Jakarta 15,000
Units
and South Jakarta with 22 and 20%, respectively. Typically,
10,000
apartment development in West Jakarta is characterised by
massive unit projects targeting the middle-low income segment, 5,000
offering small units in order to make prices affordable. The units
of these apartment projects typically come with areas from 22 0
sq m for studio units to 70 - 80 sq m for 3-bedroom units. On
2015F 2016F 2017F 2018F
the other hand, East Jakarta will see abundant new projects in
the next two to three years, mainly coming from two projects, i.e. CBD Central Jakarta South Jakarta
Green Signature and Bassura City, which are located in Cawang
North Jakarta East Jakarta West Jakarta
and Cipinang, respectively.
New Supply Pipeline (2015 - 2019)

Apartment name location region no. of units
2015
The Grove (Empyreal + Masterpiece) Jl. HR Rasuna Said CBD 438

Ciputra World - Luxurious Raffles Residences Jl. Prof Dr Satrio CBD 64
Setiabudi Sky Garden (tower 1) Jl. Karbela Selatan CBD 426
Setiabudi Sky Garden (tower 2) Jl. Karbela Selatan CBD 160
Elpis Residence Gunung Sahari Central Jakarta 790
Capitol Park Apartment (Tower T) Jl. Salemba Raya, Menteng Central Jakarta 727
Capitol Park Apartment (Tower U) Jl. Salemba Raya, Menteng Central Jakarta 976
The Mansion at Dukuh Golf Residence (Aurora Tower) Jl. Benyamin Sueb Kemayoran Central Jakarta 522
The Mansion at Dukuh Golf Residence (BellaVista Tower) Jl. Benyamin Sueb Kemayoran Central Jakarta 612
The H Residence Kemayoran (Amethyst) Jl. Rajawali Selatan Central Jakarta 800
The Royal Springhill (Lotus Tower) Jl. Spring Hill Residence Kemayoran Central Jakarta 192
The Royal Springhill (Bouvardia Tower) Jl. Spring Hill Residence Kemayoran Central Jakarta 120
Casablanca East Residence (2 Twr) + Tower Dallas Jl. Pahlawan Revolusi East Jakarta 1,904
Titanium Square Jalan Raya Bogor Kav. 27 Pasar Rebo East Jakarta 725
The H Residence MT Haryono East Jakarta 383
Bassura City (Tower Flamboyan) Jl. Basuki Rahmat East Jakarta 1,000
Bassura City (Tower Edelweiss) Jl. Basuki Rahmat East Jakarta 1,000
Bassura City (Tower Dahlia) Jl. Basuki Rahmat East Jakarta 1,000
Bassura City (Tower Alamanda) Jl. Basuki Rahmat East Jakarta 600
Bassura City (Tower Geranium) Jl. Basuki Rahmat East Jakarta 900
Teluk Intan (Tower Saphire) Jl. Teluk Gong North Jakarta 1,100
Pluit Seaview (Tower Maldives) Pluit North Jakarta 940
Pluit Seaview (Tower Belize) Pluit North Jakarta 300
Callia Apartment Jl. Perintis Kemerdekaan North Jakarta 560
The Oak Tower (2 Towers) Jl. Perintis Kemerdekaan North Jakarta 821
continued

continued
Northern Ancol Residence (1Q) Ancol North Jakarta 800
Green Bay Pluit (Sea View) Jl. Pluit Karang Ayu North Jakarta 2,072
La Venue - South Tower (1Q) Jl. Pasar Minggu South Jakarta 341
The Royal Olive Residence Tower I Jl. Buncit Raya South Jakarta 225
Senopati Penthouse Jl. Senopati Kav 45 South Jakarta 63
Senopati Suites 2 Jl. Senopati South Jakarta 81
LA City Apartment (Tower A) Jl. Raya Lenteng Agung, Jagakarsa South Jakarta 980
La Maison Barito Barito South Jakarta 80
Botanica Apartment (3 Towers) Simprug, Kebayoran Baru South Jakarta 626
Woodland Park (Trambesi tower) Jl. Kemukus No. 6, Fatahillah South Jakarta 221
1 Park Avenue (3 Towers) Jl. KHM Syafi'I Hadzami South Jakarta 279
Nine Residence Warung Buncit South Jakarta 246
Providence Park Jl. Kalimaya - Iskandar Muda South Jakarta 114
Kencana Residence Jl. Sultan Iskandar Muda South Jakarta 173
Izzara Apartment (South and North Tower) TB. Simatupang South Jakarta 542
The Aspen Peak at Admiralty Jl. Fatmawati South Jakarta 644
Niffaro Apartment (Ebony Tower) Jl. Kalibata Raya South Jakarta 288
Grand Dhika Mansion Pejaten (Sector 1) Jl. Siaga Raya South Jakarta 44
Metro Park Residence Kebon Jeruk West Jakarta 1,451
St. Moritz (New Presidential Tower) Jl. Puri Indah West Jakarta 159
Satu8 Residence Jl. Pilar Komp. Delta, Kedoya West Jakarta 174
Belmont Residence (Tower Montblanc) Jl. Meruya Ilir West Jakarta 350
The Nest Apartment Jl. Raden Saleh Raya, Meruya Utara West Jakarta 1,100
Green Palm Residence @ Puri Jl. Kosambi West Jakarta 1,000
19 Avenue Apartment 9 (Tower A) Daan Mogot West Jakarta 338
2016
The Residence (CWJ 2) Jl. Prov Dr Satrio Kav 6, Kuningan CBD 119
The Orchad Satrio (CWJ 2) Jl. Prov Dr Satrio Kav 6, Kuningan CBD 349
Sudirman Suites Jl. Sudirman CBD 380
Gayanti City (2 Towers) Jl. Gatot Subroto CBD 318
T - Plaza Residence (Tower A) Jl. Penjernihan I Kav.1 Pejompongan Central Jakarta 307
Sentosa Residence Cempaka Putih Central Jakarta 687
Sudirman Hill Residence Jl. Karet Pasar Baru Central Jakarta 255
The Green Pramuka (Tower Orchid) Jl. Jenderal Ahmad Yani Central Jakarta 1,000
The Green Pramuka (Tower Penelope) Jl. Jenderal Ahmad Yani Central Jakarta 1,000
The Green Pramuka (Tower Scarlet) Jl. Jenderal Ahmad Yani Central Jakarta 1,000
Capitol Suites Jl. Prapatan Raya Central Jakarta 327
The Royal Springhill (Bulgari Tower) Jl. Spring Hill Residence Kemayoran Central Jakarta 192
Holland Village (Phase II) Cempaka Putih Central Jakarta 230
Signature Park Grande Jl. MT. Haryono East Jakarta 1,100
Bassura City (Tower Cattleya) Jl. Basuki Rahmat East Jakarta 600
East Park Apartment (Tower C) Jl. KRT Radjiman East Jakarta 550
Sentra Timur Residence (Tower Tosca) Pulo Gebang East Jakarta 133
Pluit Seaview (Tower Ibiza) Pluit North Jakarta 500
Pluit Seaview (Tower Bahama) Pluit North Jakarta 650
La Venue - North Tower Jl. Pasar Minggu South Jakarta 253
Kemang Village (The Bloomington) Jl. P Antasari South Jakarta 150
continued

continuation
Senopati Suites 3 Jl. Senopati South Jakarta 54
Pakubuwono Terrace Grand Tower Kebayoran Lama South Jakarta 435
District 8 (Tower Eternity) Jl. Senopati South Jakarta 400
District 8 (Tower Infinity) Jl. Senopati South Jakarta 280
Lexington Rersidence Pondok Pinang South Jakarta 275
Apartment Pejaten Park Residence Jl. Warung Buncit Raya No.21 South Jakarta 560
Four Winds Jl. Permata Hijau Raya No.1 South Jakarta 122
Bellevue Place MT Haryono, Tebet South Jakarta 240
Kebayoran Icon Jl. Ciledug Raya South Jakarta 256
Sapphire Residence Lebak Bulus South Jakarta 37
St Moritz (The New Ambassador Suite Tower) Jl. Puri Indah Kembangan West Jakarta 200
The Windsor (Tower II) Jl. Puri Indah West Jakarta 164
Gianetti Apartment Jl. Kebon Jeruk Raya, Kemanggisan West Jakarta 500
Gallery West Jl. Panjang No 5 West Jakarta 280
Belmont Residence (TowerAthena) Jl. Meruya Ilir West Jakarta 193
Puri Mansion Apartment (Tower A) Puri Mansion West Jakarta 900
Madison Park Tanjung Duren West Jakarta 1,200
Veranda Jl. Pesanggrahan Raya, Kembangan West Jakarta 174
2017
Domaine Jl. Jend. Sudirman Kav 1 CBD 186

Verde Two (Tower East) Jl. Rasuna Said CBD 182
Anandamaya Residences (3 towers) Jl. Jend Sudirman CBD 500
Central 88 (2 Towers) Jl. Trembesi, Kemayoran Central Jakarta 612
Menteng Park Jl. Cikini Raya No.79 Central Jakarta 756
Holland Village Cempaka Putih Central Jakarta 400
Royal Suites Kemayoran Central Jakarta 450
The Green Pramuka (Tower Nerine) Jl. Jenderal Ahmad Yani Central Jakarta 1,000
Green Signature Apartment Jl. MT. Haryono East Jakarta 800
Podomoro Park Jl. I Gusti Ngurah Rai, Klender East Jakarta 3,000
Bassura City (Tower Jasmine) 2 tower Jl. Basuki Rahmat East Jakarta 2,000
Bassura City (Tower Heliconia) Jl. Basuki Rahmat East Jakarta 700
La Terrasse Jl. Deplu Raya No.12 South Jakarta 111
The Foresque Pasar Minggu, Ragunan South Jakarta 660
The Langham Residences Senopati South Jakarta 57
The Batik @ Pejaten Jl. Siaga Raya South Jakarta 200
La Foret Vivante Jl. Limo, Permata Hijau South Jakarta 253
Selatan 8 (Tower Sultan) Kebayoran Lama South Jakarta 336
The Hamilton Jl. KHM Syafi'I Hadzami South Jakarta 112
Puri Orchad (3 Tower) Jl Raya Adicipta West Jakarta 3,000
Maqna Residence Jl. Meruya Ilir No. 88 West Jakarta 312
Vittoria Residence (3 tower) Jl. Daan Mogot West Jakarta 1,100
Wang Residence Jl. Panjang No 18 West Jakarta 250
Taman Anggrek Residence (6 towers) Tanjung Duren West Jakarta 3,000
19 Avenue Apartment (Tower B) Daan Mogot West Jakarta 416
Regatta London Tower Jl. Pantai Mutiara North Jakarta 186
continued

continuation
2018
Verde Two (Tower West) Jl. Rasuna Said CBD 152

Lavie Jl. Denpasar Raya CBD 320
South Hill Jl. Denpasar Raya CBD 611
Le' Parc Jl. Thamrin CBD 100
Regent Residences (tower 1) Semanggi CBD 100
Core Sky Residence Pulo Gebang East Jakarta 282
Sahid Garden Residence Ciracas East Jakarta 476
Gold Coast Apartment (Atlantic Tower) Pantai Indah Kapuk North Jakarta 568
Regatta Apartment (Tower New York) Pantai Mutiara North Jakarta 186
Sedayu City (Tower Berlin) Jl. Pegangsaan Dua Raya North Jakarta 912
The Kensington Royal Suites (4 Tower) Kelapa Gading North Jakarta 790
Jaya Ancol Seafront - Oceana Tower Pademangan, Ancol North Jakarta 524
Casa Grande Residence 2 (Tower Angelo) Jl. Casablanca South Jakarta 350
Casa Grande Residence 2 (Tower Bella) Jl. Casablanca South Jakarta 350
Casa Grande Residence 2 (Tower Milano) Jl. Casablanca South Jakarta 350
Pondok Indah Residences (3 Towers) Pondok Indah South Jakarta 880
Selatan 8 (Tower Prabu) Jl. Raya Ulujami South Jakarta 344
One Otium Residence Jl. Pangeran Antasari No.8 South Jakarta 160
45 Antasari (2 Tower) Antasari South Jakarta 1,924
Arzuria Apartment Jl. Tendean South Jakarta 210
Pakubuwono Spring (2 towers) Jl. Teuku Nyak Arief No.9 South Jakarta 545
Branz Simatupang (2 tower) TB. Simatupang South Jakarta 381
Synthesis Residence Kemang Jl. Ampera Raya South Jakarta 1,100
Ciputra International Puri Indah (Tower Amsterdam) Puri Indah West Jakarta 412
Grand Madison Tanjung Duren West Jakarta 300
Citra Lake Suites (Tower Rosewood) Jl. Raya Kresek West Jakarta 104
Citra Lake Suites (Tower Greenwood) Jl. Raya Kresek West Jakarta 126
Citra Lake Suites (Tower Oakwood) Jl. Raya Kresek West Jakarta 117
Citra Lake Suites (Tower Sherwood) Jl. Raya Kresek West Jakarta 122
Apartemen Taman Permata Buana Taman Permata Buana West Jakarta 550

Demand The pre-sales activity of under-construction projects underwent
a declining trend in all regions of Jakarta. The take-up rate in
Following a downturn trend in the previous quarter, the sales South Jakarta experienced the lowest drop, mostly due to the
of strata-title apartments, particularly in the primary market, abundant supply of newly-introduced or launched projects in
continued to record slow absorption. This slow market situation the last three years. Similar to South Jakarta, the pre-sales rate
was highlighted by low GDP growth and a rupiah depreciation in the CBD area also experienced a declining sales rate because
against the US dollar, which affected the overall economy of most of the projects saw slower absorption than in 2014. The
Indonesia, particularly by lowering the purchasing power of the sales performance of under-construction projects is very much
middle class. The weakening local currency against the US dollar affected by the influx of new projects. For example, one new
has made construction costs more expensive, particularly for middle-upper class project entering the pre-sales stage put
upper- to luxury-class apartments, as 30 to 40% of the material downward pressure on the overall take-up rate during January
components are imported goods. Furthermore, the abundance - March 2015. Similarly, the continued influx of new projects in
of supply puts the overall market in a tough situation since there the non-prime area (including Central, North, West and East
are about 80,000 units (during 2015 - 2018) being marketed. In Jakarta) has resulted in a downswing of the take-up rate by 2.3%
view of this, we expect to see a further softening in the strata-title compared to the previous quarter.
apartment market throughout 2015.
Take-up Rates Performance of Existing and Under Asking Price

Construction Projects
Despite the lowering sales performance during the quarter,
average take-up rates 4Q 2014 1q 2015 QoQ average asking prices for strata-title apartments continued to
Existing Projects 95.6% 95.7% 0.10% demonstrate an upward trend. As of 1Q 2015, the average asking
Pre-Sales rate of Under Construction 72.1% 68.4% -3.70% price of apartments in Jakarta rose by 2.7% QoQ to IDR28.4
Projects million/sq m. Based on location, the new apartments in non-
Average 87.00% 85.50% -1.50% prime locations posted the highest price increase, followed by
Source: Colliers International Indonesia - Research South Jakarta and the CBD area. Benefiting from a relatively
lower price compared to South Jakarta and the CBD area, some
projects in non-prime areas are enjoying a good take-up rate and
Take-up Rates Performance of Existing Projects in
that has helped the average price to improve. On the other hand,
Three Major Areas the market perceives that the current prices of apartments in the
take-up existing projects 4Q 2014 1q 2015 QoQ CBD have reached a peak.
CBD 99.3% 99.3% 0.0%
South Jakarta 97.9% 97.6% -0.3% Average Asking Price of Apartment per Sq m
Non-Prime area 93.7% 94.0% 0.3%
Asking price/sq m 4Q 2014 1q 2015 QoQ
CBD 43,472,842 44,135,684 1.5%
South Jakarta 32,033,471 32,713,013 2.1%
As of 1Q 2015, the overall average take-up rate for strata-title Non-Prime area 20,764,022 21,285,155 2.2%
apartments (both existing and under-construction projects) in
Jakarta was 85.5%, down slightly from the previous quarters
87%. The table above shows that existing apartment projects The pace of apartment prices in 2014 slowed compared to the
in South Jakarta experienced a decrease in the take-up rates aggressive price growth in 2011 - 2013. The slowdown is in line
from the previous quarter, while the non-prime area posted an with the governments expectations, as they are very concerned
increase of 0.3% from the previous quarter but experienced a with the persistently soaring prices. This trend is expected to
drop for the under-construction projects. On the other hand, the continue throughout 2015 as the government is planning to
take-up rates for existing projects in the CBD apartment market further tighten the real estate market by imposing taxes on a
remain the same as the previous quarter, at 99.3%. broader range of the property segment.
Bank Indonesias target to curb the growth of property prices by

Take-up Rates Performance of Future Projects in tightening the LTV (Loan to Value) regulation has shown results.
Three Major Areas As on the chart below, the average QoQ changes of apartment
take-up existing projects 4Q 2014 1q 2015 QoQ prices in 2014 has been relatively slower than the strong growth
CBD 88.3% 83.9% -4.4% since 2012 - 2013. During 2011 - 2013, the average QoQ changes
in apartment prices increased by 3.34%.
South Jakarta 78.0% 68.6% -9.4%
Non-Prime area 69.4% 67.1% -2.3%

QoQ Changes of Average Asking Prices of Apartment Apartment For Lease
in Jakarta
10%
Supply
After Ascott Kuningan became available in the last quarter, there
9%
was no new supply of apartments for lease during 1Q 2015.
8% As such, the total supply of both serviced and non-serviced
apartments in Jakarta remained at 8,519 units. The majority of
7% apartments for lease in Jakarta are designed to meet expatriate
6%
standards with spacious sizes, and therefore these projects are
mainly found in the CBD and South Jakarta for two main reasons,
5% i.e. the locations are in close proximity to the commercial area
and are still in the catchment area of reputable international
4%
schools.
3%
The Distribution of Apartment for Lease by Area
2%
1%
0% Non-prime
21%
2011 2012 2013 2014 2015YTD
Source: Colliers International Indonesia - Research CBD

44%
The trend of slowing demand is likely to persist in the upcoming
quarters. To anticipate this, developers continue to offer
financing incentives like cash instalment payments and in some
cases, buyers are not required to make a down payment. This
payment scheme has become a preferable method of paying
since it does not require bank approval and offers flexibility to
manage the cash flow. Furthermore, developers, especially those
South Jakarta
having strong working capital, are confident in offering longer
35%
cash instalments for up to 60 months.
Payment Method Composition in Purchasing Source: Colliers International Indonesia - Research
Apartment
The apartment for lease market in Jakarta was mainly dominated
by two global brands of serviced apartment operator, i.e. The
Hard Cash Ascott Limited and Frasers Hospitality. The Ascott Limited has
16% Mortgage three brands in operation, Ascott Residence, Somerset and
26% Citadines. Frasers Hospitality has only Fraser Residence but in
the upcoming years, Fraser Hospitality will have Fraser Suites
(Ciputra World II), Fraser Place (Setiabudi Sky Garden) and
Capri by Fraser.
A strong operator brand for serviced apartments is a crucial

factor for differentiation from other products and to guarantee a
global service level. Several major serviced apartment operators
have multiple brands to serve different market segments.
Cash
Installment
58%

List of Serviced Apartments Managed by Ascott and Frasers
year of
Name of development operator location type
operation
The Ascott Residence 1995 Ascott Limited Kebon Kacang Serviced Apartment
Somerset Grand Citra 1996 Ascott Limited Satrio Serviced Apartment
Countrywoods Residence 1996 Ascott Limited WR Supratman, Ciputat Serviced Apartment
Somerset Berlian 2006 Ascott Limited Permata Hijau Serviced Apartment
Fraser Residence Sudirman 2011 Frasers Hospitality Setiabudi Serviced Apartment
Citadines Rasuna Jakarta 2013 Ascott Limited Rasuna Said Condotel
Fraser Residence Menteng 2014 Frasers Hospitality Menteng Serviced Apartment
Ascott Kuningan Jakarta 2014 Ascott Limited Satrio Serviced Apartment
Fraser Place at Setiabudi Sky Garden 2015 Frasers Hospitality Karbela Selatan Serviced Apartment
Somerset Kencana Jakarta 2015 Ascott Limited KHM Syafi'I Hadzami Condotel
Fraser Suites at Ciputra World Jakarta 2 2016 Frasers Hospitality Satrio Serviced Apartment
Fraser Suites Kebon Melati 2018 Frasers Hospitality Kebon Melati Serviced Apartment
Capri by Fraser 2018 Frasers Hospitality TB Simatupang Condotel
Source: Colliers International Indonesia - Research and Fraser Cachet (Issue 18)
Occupancy New enquiries were reportedly limited, with only a few

apartments in South Jakarta enjoying an increase in occupancy
The apartment for lease market experienced a minor occupancy during the reviewed quarter. Softening demand during this
decrease of 0.4% QoQ to 75.3%. Leasing activity during the quarter was mostly limited to inquiries from western expatriates.
initial period of 2015 was relatively stagnant highlighted with The recent plunge in oil prices has impacted the overall
come and go tenants and the absence of new enquiries from sluggish performance of apartments for lease in Jakarta as some
expatriates. This figure also marked a 0.9% decrease compared companies related to the oil business reduced the number of
to the same quarter in 2014. Moreover, it should be noted that their expatriates working in Jakarta. For some years, the oil and
a large number of new middle-upper to upper class strata-title gas industry has consistently driven the leasing market, mainly
apartments is likely to put downward pressure on occupancy for western expatriates.
levels of apartments for lease. Generally, individually owned
apartment units are offered furnished, which meets expatriate To cope with this situation, some apartments for lease (both
standards and taste. serviced and non-serviced) offered more flexible leasing terms
and payment to entice tenants, allowing for short-term leasing.
Previously, the apartments for lease require a minimum lease
The QoQ Occupancy Performance for Non-Serviced term of six months paid in advance. Recently, landlords are
Apartment offering monthly accommodation that can be paid monthly.
Area 4Q 2015 1Q 2015 QoQ change
CBD 84.5% 84.6% 0.1%
South Jakarta 77.1% 76.7% -0.4% Rental Rates
Non-Prime area 74.9% 74.8% -0.1%
The average monthly rent of apartments for lease in Jakarta
persisted in its decline, falling 2% QoQ to USD21.8/sq m/
month. The overall downward trend in the rental rate was
triggered by sluggish demand in the previous year, which caused
The QoQ Occupancy Performance for Serviced management adjust rents to maintain the occupancy level.
Apartment
Several apartments for lease are offered in local currency,
however with the weakening rupiah against the US dollar and
CBD 78.7% 76.1% -2.6%
that the overall rental rates presented here are in US dollars, the
South Jakarta 74.6% 75.5% 0.9%
overall figure dropped somewhat. During the tenants market
Non-Prime area 51.8% 53.4% 1.6% in the coming period, rents are expected to soften during 2015
Source: Colliers International Indonesia - Research and this will characterise the whole leasing market.

Average Rental Rates of Apartment for Lease Concluding Thought
USD 30.00 The government plans to introduce a new scheme of luxury
USD 27.00 goods tax on residential property would adversely impact
property sales, particularly in the middle segment. Previously, a
USD 24.00
5% luxury tax was expected to be imposed on property valued
Rental Rates/ sq m/ month
USD 21.00 at IDR10 billion but a revision is pending to reduce this to IDR2
USD 18.00 billion. The planned revisions would encompass a much wider
range of property sales, as a IDR2 billion apartment in Jakarta is
USD 15.00
currently considered as middle to middle-upper segment, which
USD 12.00 comprises about 23% of the total existing apartments. On the
USD 9.00
other hand, it is unlikely to have a dramatic impact on the upper
to luxury class apartments, since this kind of buyer will pay for a
USD 6.00 high-quality product and is not relatively price sensitive.
USD 3.00
The apartments for lease market is expected to remain quiet
USD 0.00 in the upcoming quarters due to the current issues regarding
2009
2010
2012
2014
2011
2013
2015YTD
an additional regulation that will require foreigners to master
the Indonesian language before they are able to obtain a work
permit. This regulation may hamper the inflow of a number of
CBD South Jakarta (inc. Non-Prime Area) expatriates coming to Indonesia. In contrast, the establishment
of the ASEAN Economic Community should create a business
momentum that will gradually improve the Jakarta apartments
for lease market.
As mentioned above, some serviced apartments in the CBD
raised their rental rates by 3 to 5%. One serviced apartment
building adjusted the rental rate quite significantly and thus
impacted the drop of overall rental rates in the CBD. On the other
hand, apartments for lease in South Jakarta (including non-
prime area), which mostly consist of non-serviced apartments,
kept the rental rate the same as in the previous quarter. In
addition, since many non-serviced apartments quote the rental
rate in rupiah, the strengthening US dollar impacted the overall
rental rates in US dollars.
Average Rental Rates of Apartment for Lease

CBD USD28.58 USD27.81 -2.7%
South Jakarta (including USD15.94 USD15.83 -0.7%
non-prime area)

RETAIL SECTOR Existing and Future Retail Space in Jakarta
West Jakarta
Supply East Jakarta
Jakarta North Jakarta
Jakarta Shopping Center Cumulative Supply

South Jakarta
5,500,000
5,000,000 Central Jakarta
4,500,000
4,000,000 CBD
3,500,000
sq m
3,000,000 0 200,000 400,000 600,000 800,000 1,000,000

2,500,000 sq m
2,000,000 Existing Supply up to 2014 Future Supply in 2015 - 2018

1,500,000 Source: Colliers International Indonesia - Research
1,000,000
While proceeding with the construction of New Harco Plaza,
500,000
Agung Podomoro is preparing to launch Podomoro Park in
0 Buaran, East Jakarta. Similar to their previous project (Podomoro
City in West Jakarta), the shopping mall in Podomoro Park will
2010
2017F
2012
2014
2011
2013
2015F
2018F
2016F
2015YTD
be part of an integrated development together with apartments.
Pondok Indah Group plans to build two new shopping centres,

i.e. Puri Indah Mal 2 in West Jakarta and Pondok Indah Mal 3
South Jakarta. Both malls are expansions of existing projects.
For the last five years, the growth of retail space in Jakarta has Being announced several years ago, these projects will start to be
been slack and this will likely continue in 2015 - 2016 when there developed in 2015.
will be less than 100,000 sq m of additional supply contributed by
three shopping centres. With no new shopping centres operating Jakarta Cumulative Supply Based on Marketing
as of 1Q 2015, the cumulative supply of retail space in shopping Scheme
centres in Jakarta remained as it was in 2014 at 4.43 million sq m.
5,500,000
Despite the limited number, Jakarta is expected to see more
shopping centres in operation after 2016. It is projected that there 5,000,000
will be around 500,000 sq m of new retail space by 2018. Other 4,500,000
than shopping centres that are currently under construction, at 4,000,000
least five future shopping centres, i.e. Mal Puri Indah 2, Pondok
3,500,000
Indah Mal 3, AEON Cakung, Shopping Mall at Podomoro Park
sq m
3,000,000
and Holland Village Mall are preparing to start construction in
2015. Some of those have confirmed that they will break ground 2,500,000
within the first half of 2015. 2,000,000
1,500,000
Experienced developers are still the main contributors of
additional supply of shopping centres in Jakarta. Agung 1,000,000
Podomoro Land (APL) and Pondok Indah Group will become 500,000
active contributors of new shopping centres in Jakarta. They will 0
provide around 48% of the total additional supply during 2015 -
2011
2013
2015YTD
2010
2017F
2012
2014
2015F
2018F
2016F
2018.
For Sale For Lease

25 Research & Forecast Report | 1Q 2015 | Retail | Colliers International

Greater Jakarta Area (BoDeTaBek - Existing and Future Retail Space in BoDeTaBek
Bogor, Depok, Tangerang, Bekasi)
BoDeTaBek Shopping Center Cumulative Supply Bekasi
3,000,000
Tangerang
2,500,000
2,000,000
Depok
sq m
1,500,000
1,000,000 Bogor
500,000
0 300,000 600,000 900,000 1,200,000
sq m
0
Existing Supply up to 2014 Future Supply in 2015 - 2018
2010
2017F
2012
2014
2011
2013
2015F
2016F
2018F
2015YTD
Overall, Jakarta and the greater area is anticipating additional 27

Existing Supply Annual Supply new shopping centres that will bring 1.1 million sq m of retail
space by 2018. Bekasi and Tangerang will be the two largest
contributors with around 500,000 sq m of projected additional
AEON Mall BSD seemingly will be the sole shopping centre in retail space at 10 shopping centres by 2018. These 10 projected
greater Jakarta in 2015. Construction progress on it has been shopping centres will bring the cumulative supply in each of
quite significant and it is ready to open as the first AEON Mall in those areas to more than a million sq m by 2018.
Indonesia around mid-2015.
In addition to Bekasi, which will have seven future shopping
A joint venture of AEON with a local developer will build 20 centres, Bogor will also see more additional retail space of
shopping malls in Indonesia over the next eight years. Besides around 100,000 sq m by 2018, as they are only neighbourhood
BSD City, AEON will develop more malls in the greater Jakarta category shopping centres.
area like Kota Deltamas in Bekasi Regency, Bogor and Sentul.
It is expected that those developments will be completed and BoDeTaBek Cumulative Supply Based on Marketing
opened in 2018. Scheme
Without any new shopping centres being introduced this quarter,
3,000,000
the cumulative supply was identical to the previous quarter at
2.91 million sq m. It is expected that the greater Jakarta retail
market will see more new space than Jakarta with a projected 2,500,000
600,000 sq m of additional supply coming into the market by
2018. However, as of 1Q 2015, construction progress is only seen 2,000,000
at retail centres that are expected to begin operations in 2015 -
sq m
2016. This only represents 25% of the total additional supply in 1,500,000
2015 - 2018.
1,000,000
Larger additional supply in 2017 - 2018 will be contributed
mostly by shopping centres located adjacent to or integrated into
residences, both vertical and landed houses. 500,000
0
2010
2017F
2012
2014
2011
2013
2015F
2016F
2018F
2015YTD
For Sale For Lease


Despite the lower numbers, Tangerang will see larger additional In Jakarta, three regions including Central, South and West
supply than Bogor, mostly due to the fact that future shopping Jakarta are areas actively contributing new shopping centres.
centres in Tangerang are regional shopping centres larger than West Jakarta will be the largest contributor by providing 150,000
30,000 sq m. sq m of additional supply by 2018.
New Supply Pipeline

shopping centers developer location region NLA (sq m) Status
Jakarta
2015
Pantai Indah Kapuk Mall Agung Sedayu Pantai Indah Kapuk North Jakarta 30,000 Under Construction
Shopping Mall @ Pancoran Agung Podomoro Pancoran South Jakarta 8,000 Under Construction
2016
Neo SOHO Mall (Podomoro City) Agung Podomoro Slipi West Jakarta 40,000 Under Construction
2017
Mal Puri Indah 2 Pondok Indah Group Puri Indah West Jakarta 50,000 In Planning
Grand Cipulir Priamanaya Cipulir South Jakarta 30,000 In Planning
Holland Vilage Mall Lippo Group Cempaka Putih Central Jakarta 40,000 In Planning
New Harco Plaza Agung Podomoro Glodok West Jakarta 60,000 Under Construction
Mall @ Green Pramuka City Duta Paramindo Sejahtera Pramuka North Jakarta 30,000 In Planning
Pondok Indah Mall 3 Pondok Indah Group Pondok Indah South Jakarta 60,000 In Planning
2018
Mall at The City Centre Kencana Graha Global Mas Mansyur Central Jakarta 65,000 In Planning
Shopping Mall at Podomoro Park Agung Podomoro Buaran East Jakarta 40,000 In Planning
AEON Mall Garden City AEON & Sinarmas Cakung East Jakarta 90,000 In Planning
BoDeTaBek
2015
AEON Mall BSD AEON Serpong Tangerang 75,000 Under Construction
2016
Bekasi Trade Centre 2 Gapura Prima Bulak Kapal Bekasi 56,000 Under Construction
Metropolitan Mall Cileungsi Metropolitan Land Cileungsi Bogor 25,000 Under Construction
2017
Vivo Sentul Lifestyle Megapolitan Cibinong Bogor 30,000 In Planning

Vivo Sentul Trademall Megapolitan Cibinong Bogor 13,000 In Planning
Living World Jababeka Kawan Lama Jababeka Bekasi 18,000 In Planning
Plaza Indonesia Jababeka Plaza Indonesia Jababeka Bekasi 20,000 In Planning
Hollywood Central Graha Buana Cikarang Cikarang Bekasi 25,000 In Planning
Embarcadero Lippo Group Bintaro Tangerang 40,000 In Planning
Grand Dhika City Mall Adhi Persada Property Bekasi Bekasi 24,000 Under Construction
continued

shopping centers developer location region NLA (sq m) Status
2018
AEON Mall Deltamas AEON Deltamas Bekasi 90,000 In Planning

AEON Mall Bogor AEON Cibinong Bogor 20,000 In Planning
AEON Mall Sentul AEON Sentul Bogor 15,000 In Planning
Pesona Square Menara Depok Depok Depok 20,000 In Planning
Kota Harapan Indah Hasana Dharma Permai Bekasi Bekasi 51,000 In Planning
Lippo Grand Mall Lippo Group Karawaci Tangerang 120,000 In Planning
Demand and Occupancy In 2014, quite a few shopping centres had large vacant spaces
due to their transformation by upgrading tenancy layouts and
Since the second half of 2014, the occupancy rate of shopping faades. Apart from that, Jakarta also witnessed some dying malls.
centres in Jakarta continues to increase QoQ. As of 1Q 2015, With poor performance at these malls, some tenants anticipate
several home furnishing and fashion retailers contributed to pulling out due to lower numbers of visitor and low transaction
increase the occupancy to 86.8%. Jysk and H&M are foreign volume. The decreasing performance of those shopping centres
retailers that have entered the Jakarta market around 2013 - will lead to a weakening occupancy of the overall Jakarta area.
2014. Jysk, a Danish retail chain selling household goods such Landlords should anticipate this and look for a way to attract
as mattresses, furniture and interiors, will be very expansive in crowds to their malls.
opening new outlets in 2015. This retailer opened three stores,
Poorer performance was also recorded at middle to middle
two of which are in Jakarta. H&M, will also open more stores in
low class shopping centres that are categorised as trade malls.
Jakarta. Later, the Sweden-based retailer will open a store at a
Occupancy levels at this class of shopping centres during 2014
mall in Pluit, North Jakarta.
continued to weaken. However, as of 1Q 2015, the occupancy at
The projected occupancy of shopping centres in Jakarta is middle class shopping centres started climbing while at middle-
expected to increase at least until the next quarter. Some low shopping centres it continued to decline.
tenants like home furnishings, fashion, department store and
Conversely, upper class, including premium, malls maintained
supermarket seemingly are in the pipeline to open new stores.
a high level of average occupancy. Most shopping centres
When these pre-committed tenants open, retail space in Jakarta
recorded new space absorption from 500 to 2,000 sq m that were
will become limited.
taken by tenants, raising the occupancy of upper class shopping
centres to 91.2% as of 1Q 2015.
Cumulative Supply, Demand and Occupancy in
Jakarta Based on area (CBD and Outside CBD), the occupancy of
shopping centres in the CBD was flat at 92% since the previous
3,500,000 100%
year. With no additional supply for at least three years ahead,
tenant re-layout is the mostly activity found at shopping centres
90%
3,000,000 in the CBD. A renewal tenancy list is one way for landlords to
80% attract a lot of visitors and maintain high occupancy rates.
2,500,000 70% Currently, a luxury mall around Thamrin made small changes
to their layout by relocating tenants from eX Plaza (a mall that
60%
2,000,000 stopped operating in the middle of 2014). To maintain the
50% prestige, this mall had to select potential tenants to occupy the
sq m
1,500,000 space mostly on the top floor. Another mall in Thamrin also did
40%
30% a re-layout due to the opening of a new department store, while
1,000,000
a mall in South Jakarta is also discussing refreshing their tenancy
20%
500,000 mix.
10%
0 0%
After the declining trend in 2014, the average occupancy in the
outside CBD climbed moderately QoQ to 84.6% as of 1Q 2015.
2011
2013
2015YTD
2010
2012
2014
On the contrary, South Jakarta saw a decreasing occupancy QoQ

due to a large vacant space available at a shopping centre in the
Cilandak area. This mall is in negotiations with some food and
Space Absorbed Vacant Space Occupancy beverage stores to occupy the vacant space.

The performance of newly operating shopping centres in 2013 - lower occupancy than those two areas. The opening of stores at
2014 also helped move occupancy upwards in North, East and both newly operating and existing shopping centres maintained
West Jakarta. As of 1Q 2015, the occupancy in North and East the occupancy in West Jakarta at 80.9%.
Jakarta were 83.7 and 87.4%, respectively. West Jakarta recorded
List of New Tenants (of more than 1,000 sq m) during 2015 in Jakarta
Name of tenant type of retailer open at opening time
Jysk Home Furnishing Kuningan City March
Jysk Home Furnishing Pejaten Village March
XXI Entertainment Lippo Mall Puri March
H&M Fashion Emporium April
Matahari Dept. Store Pasaraya June
H&M Fashion Lippo Mall Puri June
Uniqlo Fashion PIK Mall July
Lotte Mart Supermarket PIK Mall July
Informa Home Furnishing PIK Mall July
Ranch Market Supermarket PIK Mall July
Golds Gym Entertainment Dharmawangsa Square July
Debenhams Dept. Store Lippo Mall Puri July
Ace Hardware Home Furnishing PIK Mall October
Ace Hardware Home Furnishing Mall of Indonesia November
Annual Supply and Demand in Jakarta Cumulative Supply, Demand and Occupancy in
BoDeTaBek
200,000
2,000,000 100%
160,000 90%
1,600,000 80%
120,000 70%
sq m
1,200,000 60%
50%
sq m
80,000
800,000 40%
30%
40,000
400,000 20%
10%
0
0 0%
2010
2012
2014
2011
2013
2015YTD
2010
2012
2014
2011
2013
2015YTD
Annual Supply Annual Demand

Source: Colliers International Indonesia - Research Space Absorbed Vacant Space Occupancy
The performance of some shopping centres that operated in
2013 - 2014 also had a positive good impact on the occupancy
in greater Jakarta area, which climbed by 1.6% QoQ to 83.4% as AEON Mall will be the sole shopping centre operating in 2015.
of 1Q 2015. Some committed tenants opened their stores after AEON Mall is expected to lure visitors due to its Japanese
those malls had been operating for two years. Similar to Jakarta, mall concepts that are different from other operating malls
home furnishing retailers were a major contributor which It is confirmed that and AEON own brand supermarket and
helped maintain the occupancy in greater Jakarta high since department store will occupy this mall, which is projected to
the second half of 2014. Jysk, Pongs, Informa and Ace Hardware officially open in 2Q 2015.
have opened progressively as of 1Q 2015 at shopping centres in
Depok and Tangerang.

Occupancy Based on Region in BoDeTaBek Annual Supply and Demand in BoDeTaBek
100% 200,000
90%
80% 160,000
70%
60% 120,000
sq m
50%
80,000
40%
30%
40,000
20%
10%
0
0%
2010
2012
2014
2011
2013
2015YTD
2010 2011 2012 2013 2014 2015YTD
Bogor Depok Tangerang Bekasi Annual Supply Annual Demand

Committed Tenant in Future Shopping Centres

Name of shopping centers projected completion location retailers
Jysk Home Furnishing Margo City February
Ace Hardware Home Furnishing Bintaro XChange May
XXI Entertainment Aeon Mall June
H&M Fashion Aeon Mall June
Uniqlo Fashion Aeon Mall June
Informa Home Furnishing Bintaro XChange May
Ace Hardware Home Furnishing BTC City (BTC 2) 2016
Informa Home Furnishing BTC City (BTC 2) 2016
List of New Tenant of More Than 1,000 sq m During 2015 and 2016 in Jakarta and BoDeTaBek
projected
shopping centers location Retailers
completion
Jakarta
PIK Mall 2015 Kapuk, North Jakarta Blitz Megaplex, Muji, Gold Gym, Lotte Mart, Ace Hardware, Fun World, Ranch Market
Neo Soho Mall 2016 Slipi, West Jakarta Central Department Store
BoDeTaBek
Aeon Mall 2015 BSD City, Tangerang Jysk, Aeon Supermarket, Aeon Department Store, H&M, Uniqlo
Bekasi Trade Center 2 2016 Bulak Kapal, Bekasi Hypermart, Ace Hardware
Metropolitan Mall Cileungsi 2016 Cileungsi, Bekasi Matahari, Gramedia, XXI

Space Absorption in the Future Shopping Centers
in Jakarta in BoDeTaBek
2018F 2018F
2017F 2017F
2016F 2016F
2015F 2015F
2014 2014
0 60,000 120,000 180,000 240,000 0 80,000 160,000 240,000 320,000

sq m sq m
Absorbed Vacant Space Absorbed Vacant Space
Based on committed demand, future shopping centres in 2015 -

2016 both in Jakarta and the greater Jakarta area have been 50%
absorbed as of 1Q 2015. Some committed tenants are ready to
open at shopping centres that are projected to begin operating
in 2015 - 2016.
Average Asking Rents and Service Most shopping centres in Jakarta saw a similar range of asking
base rents YoY. As of 1Q 2015, the average base rent of shopping
Charges centres in Jakarta was IDR521,783/sq m/month, up by 6.1%
YoY. The asking base rent of a typical floor was IDR359,706/
Jakarta sq m/month while the highest rent achieved is typically found
on the ground floor where the average rent was, on average,
IDR674,741/sq m/month. Although the asking base rent was
Asking Base Rent (Sq m/month) Based on Class
relatively flat, landlords will charge 15 - 25% more when renewing
the contracts, which commonly have a three-year lease period.
IDR 1,000,000
IDR 900,000 Based on grade, since 2011, upper class malls experienced 10%
average growth of rents, while middle middle low class only
IDR 800,000 recorded 3% per year. The average asking base rent of upper class,
IDR 700,000 which was IDR921,237/sq m/month as of 1Q 2015, is expected
to increase. Limited vacant space and the plan to introduce new
IDR 600,000
rental rates will likely lift the average base rents in 2015.
IDR 500,000
Middle middle low class malls have begun to see high growth of
IDR 400,000 rents. In the previous year, the growth of the average rent of this
IDR 300,000 mall grade was 2.2%. In 2015, by climbing 2.9% YoY, the average
base rent was IDR343,991/sq m/month as of 1Q 2015. However,
IDR 200,000
the projected growth of rents will be modest as increasing rents
IDR 100,000 still have a strong impact on middle class retailers.
IDR 0
2010 2011 2012 2013 2014 2015YTD
Upper Class Middle Low Average


Average Asking Base Rent in Jakarta There is a big gap in service charges between upper class and
lower class malls with a range of 35 to 55%. The average service
IDR 1,000,000 charge at middle middle low class shopping centres was
between IDR95,874 and 65,751/sq m/month as of 1Q 2015. It is
IDR 900,000
expected that the growth of service charges in 2015 will be higher
IDR 800,000 than in 2014. As an early indicator, the QoQ growth of service
charge as of 1Q 2015 was higher than QoQ changes in 2014.
IDR 700,000
IDR 600,000 Average Service Charge in Jakarta Based on

IDR 500,000 Location
IDR 400,000
IDR 200,000
IDR 300,000
IDR 200,000
IDR 160,000
IDR 100,000
IDR 0
IDR 120,000
2010 2011 2012 2013 2014 2015YTD
CBD Outside CBD

Source: Colliers International Indonesia - Research IDR 80,000
Since electricity tariffs and minimum wages increased in 2014,

IDR 40,000
the average service charge surpassed IDR100,000/sq m/month.
As of 1Q 2015, service charges at shopping centre in Jakarta
were IDR105,723/sq m/month, growing 10.1% YoY. Upper class IDR 0
shopping centres had a rapid increase in service charges, to
2010 2011 2012 2013 2014 2015YTD
IDR148,803/sq m/month as of 1Q 2015. Six upper class malls in
Jakarta have adjusted their service charges upward in the range CBD Outside CBD
of IDR150,000 - 230,000/sq m/month as of 1Q 2015. Source: Colliers International Indonesia - Research
Average Service Charge in Jakarta Based on Class

BoDeTaBek
IDR 200,000
Average Base Rent in BoDeTaBek
IDR 400,000
IDR 160,000
IDR 360,000
IDR 320,000
IDR 120,000
IDR 280,000
IDR 240,000
IDR 80,000
IDR 200,000
IDR 160,000
IDR 40,000
IDR 120,000
IDR 80,000
IDR 0
2010 2011 2012 2013 2014 2015YTD IDR 40,000
IDR 0
Upper Class Middle Low Average
Source: Colliers International Indonesia - Research 2010 2011 2012 2013 2014 2015YTD
Bogor Depok Tangerang Bekasi


In greater Jakarta, with a range of IDR200,000 to 300,000/sq m/
month, the average asking base rent was IDR315,898/sq m/
Concluding Thoughts
month as of 1Q 2015. It grew 4.4% YoY. The average base rent of Jakarta has to avoid a saturated situation of shopping centres
shopping centres in Tangerang was the highest at IDR372,185/ in terms of tenancy mix and mall atmosphere. Re-layout and
sq m/month, while in Depok it was the lowest at IDR249,113/sq bringing in new tenants brings a fresh concept that is expected
m/month. to attract more visitors to shop.
The projected asking base rent in greater Jakarta is expected to Jakarta is still projected as a potential market for foreign retailers.
increase in 2015. Some shopping centres that achieved high However, there is inadequate vacant space in the middle to
occupancy rates still maintain base rents similar to the previous upper class mall particularly in the CBD. Several shopping
year. With limited vacant space, the possibility of adjusting centers mitigate such situation by rearranging the tenancy mix
asking base rents will be high in 2015. and selecting tenants with the capacity to attract crowd and lift
malls performance.
Average Service Charge in BoDeTaBek Based on
Region
IDR 120,000
IDR 100,000
IDR 80,000
IDR 60,000
IDR 40,000
IDR 20,000
IDR 0
2010 2011 2012 2013 2014 2015YTD
Bogor Depok Tangerang Bekasi

The average service charge at shopping centres in greater Jakarta

was in the range of IDR70,000 - 80,000/sq m/month. The average
service charge in greater Jakarta was IDR79,947/sq m/month,
lower by 25% compared to that in Jakarta. Based on region, Bekasi
and Tangerang had the highest service charges at IDR85,052 and
82,449/sq m/month, respectively.
Five shopping centres, two in Tangerang, have adjusted their

service charge to between IDR100,000 and 125,000/sq m/month.
The highest service charge was recorded by two shopping centres
located in Bogor and Tangerang.

Hotel Sector Cumulative Supply of Star-Rated Hotel Rooms in
Jakarta
14,000
Star-Rated Hotel
12,000
Most hotels in Jakarta are business hotels which rely mostly on
business activities of meetings, conferences and exhibitions. In 10,000
early 2015, two prominent names in the hotel industry officially
opened luxury class hotels in Jakarta area: Raffles Hotels & 8,000
Resorts with 173 rooms, and Fairmont Hotels & Resorts with
380 rooms. In contrast, the Jakarta hotel market saw a reduction 6,000
in the number of hotel rooms with the temporary closure of
the Four Season Hotel Jakarta. This was the Regent Hotel that 4,000
opened in 1995 and was operated by Four Seasons years later. As
of the end of 2014, the hotel called a halt to operations and will 2,000
re-open after three years of major renovations.
0
In 2015, there will be another luxurious hotel with 250 rooms
2006
2008
2005
2009
2007
2010
2012
2014
2011
2015
2013
in the CBD area from The Westin - Starwood Hotels & Resorts
Group. By 2015, Colliers Indonesia expects an addition of 6,310
rooms in the starred-rated hotels, that will be mostly at 3-star 3-star 4-star 5-star
hotels. Source: Colliers International Indonesia - Research
Cumulative Supply of Star-Rated Hotel Projects in

Jakarta
70
60
50
40
30
20
10
0
2006
2008
2005
2009
2007
2010
2012
2014
2011
2015
2013
3-star 4-star 5-star

34 Research & Forecast Report | 1Q 2015 | Hotel | Colliers International

Future Hotel Development Pipeline
str global projected
star No. of
Name of development equivalent location region completion
rated rooms
rate time
Harris Hotel Hayam Wuruk 3 Midscale Class Hayam Wuruk Central Jakarta 265 2015
Harris Hotel Gunung Sahari 3 Midscale Class Gunung Sahari Central Jakarta 200 2015
Harris Hotel Cilandak 3 Midscale Class Cilandak South Jakarta 130 2015
Aston Neo 3 Midscale Class TB Simatupang South Jakarta 170 Q3 2015
Ibis Style 3 Midscale Class Pantai Indah Kapuk North Jakarta 200 Q4 2015
Prima Hotel 3 Midscale Class Wahid Hasyim Central Jakarta 150 Q4 2015
Santika 3 Midscale Class TB Simatupang South Jakarta 151 Q2 2016
Santika 3 Midscale Class Yos Sudarso North Jakarta 150 Q2 2016
Ibis Style 3 Midscale Class Bangka Raya South Jakarta 200 Q3 2016
The Acacia 3 Midscale Class Kramat Raya Central Jakarta 150 Q3 2016
Hotel @Fachrudin 3 Midscale Class Tanah Abang Central Jakarta 225 Q4 2016
Citizen M Hotel 3 Midscale Class Mega Kuningan South Jakarta 200 Q4 2018
Grand Mercure Kemayoran 4 Upscale Class Benyamin Sueb, Kemayoran Central Jakarta 200 2015
Novotel 4 Upscale Class Pantai Indah Kapuk North Jakarta 220 Q4 2015
SwissBelhotel - Kirana Commercial Avenue 4 Upscale Class Boulevard Kelapa Gading North Jakarta 300 Q3 2016
Aloft 4 Upscale Class Wahid Hasyim Central Jakarta 170 Q4 2017
Hotel @Perintis - South Tower 4 Upscale Class Mega Kuningan South Jakarta 112 2018
Sheraton 5 Luxury Gandaria South Jakarta 300 Q3 2015
InterContinental 5 Luxury Pondok Indah South Jakarta 300 Q4 2015
St Regis 5 Luxury Gatot Subroto South Jakarta 124 2016
The Langham 5 Luxury SCBD South Jakarta 200 2017
Regent 5 Luxury Gatot Subroto South Jakarta 126 2018
Sofitel 5 Luxury Mega Kuningan South Jakarta 212 2018
Source: Colliers International Indonesia - Research and STR Global
Budget Hotel Cumulative Supply of Budget Hotel (Economy Class)

in Jakarta
For the last couple of years, the budget hotel market has shown
exponential supply growth. As of 2015, there will be 1,164 45
additional hotel rooms. Since 2006, the Amaris brand (Santika
40
Group) has been the major budget hotel operators with ten hotels
under its management. Other active budget hotel operators 35
include Aston Group with Fave and NEO, Accor Group with
Ibis budget brand, and Tauzia Management with POP! and the 30
new brand called Yello. By the end of 2015, Tauzia Management
will dominate hotel development especially for budget hotels 25
around Indonesia.
20
15
10
0
2006
2008
2005
2009
2007
2010
2012
2014
2011
2015
2013

Future Hotel Development Pipeline
projected
str global No. of
Name of development location region completion
equivalent rate rooms
time
POP! Hotel Pasar Baru Economy Pasar Baru Central Jakarta 112 2015
POP! Hotel Wahid Hasyim Economy Wahid Hasyim Central Jakarta 90 2015
Whiz - Cipete Economy Cipete South Jakarta 180 2015
@HOM - Cawang Economy Cawang East Jakarta 80 2015
POP! Hotel Gajah Mada Economy Gajah Mada Central Jakarta 90 2015
Whiz - Hayam Wuruk Economy Hayam Wuruk Central Jakarta 200 2015
Yello Hotel Hayam Wuruk Economy Hayam Wuruk Central Jakarta 372 2015
Amaris TB Simatupang Economy TB Simatupang South Jakarta 151 2015
Source: Colliers International Indonesia - Research and STR Global
There are three major groups of hotel management that Most Active Budget Hotel Operators Based on
are actively expanding their business coverage, i.e. Tauzia Number of Hotels
Management, Santika and Intiland. Santika, with the Amaris
brand has dominated the budget hotel market in Jakarta but 16
recently, Tauzia and Intiland are slowly trying to increase their
market share. By 2016, Tauzia Management will add four hotels 14
with at least 700 rooms in Jakarta, followed by Intiland, which
will expand with another two hotels providing at least 490 rooms. 12
10
Most Active Budget Hotel Operators Based on
Number of Rooms 8
1,600 6
1,400 4
1,200 2
1,000 0
Santika Tauzia Intiland
800
Year to Date Projected Supply During 2015
600 Source: Colliers International Indonesia - Research
400
200
0
Santika Tauzia Intiland
Year to Date Projected Supply During 2015

Number of Passenger Through Soekarno - Hatta
Demand Driver Airport
At the end of 2014, the Indonesian Hotel and Restaurant
2,500,000
Association (PHRI) urged the government to postpone the policy
of banning all government institutions from holding meetings
and conferences in hotels and convention centres. In response
2,000,000
to this, it was indicated that government would relax the ban to
help boost hotel occupancy rates, which had decreased since
the implementation of this strict measure. The hotel association
expects that the ban relaxation will likely increase occupancy 1,500,000
rates in hotels located in remote areas by 10 to 20% where from
40 to 50% of revenues are sourced from government-related
events. 1,000,000
For some time, hotel guests have been largely domestic. Most
foreign guests choose to stay in 5-star hotels, with some staying in 500,000
4-star hotels mainly for business trips. The majority of domestic
guests prefer to stay in 3-star hotels. In the last four years, the
average length of stay of foreign guests in 5-star hotels has been 0
slightly higher than that of domestic guests.
2011
2013
2006
2008
2005
2009
2007
2010
2012
2014
The Composition of Foreign and Domestic Guests Source: Jakarta Statistics
100%
Performance
80% The YoY hotel performance is not great, particularly from an
occupancy rate standpoint. According to the STR Global data
point that Colliers refers to, the AOR (Average Occupancy Rate) in
60% March 2015 decreased quite significantly from 66.2 to 56%. This
occurred not only in the CBD area but also outside the CBD area.
There were some factors that probably affect this. First is Election
40% Day when quite a few political parties held congresses and other
political activities in hotel raising the occupancy rate prior to
the legislative election. This explains why the AOR in early 2014
20% was higher than in early 2015. Second is the issuance of a new
regulation, after the new cabinet was inaugurated by the Ministry
of Administrative and Bureaucratic Reform that prohibits civil
0%
servants from holding meetings in hotels. Apart from this, the
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 relatively low occupancy rate will be further challenged by the
Domestic Foreign
continuing new hotel development in the future.
Source: Jakarta Statistics
Since 2010, the number of passengers that arrived in Jakarta

showed an upward trend. By the end of 2014, the number of
passengers that arrived in Indonesia via Soekarno Hatta
International Airport had reached 2,246,437, a slight increase
from the previous year. The highest number arrivals was during
June to September.

Average Occupancy Rate of Hotels in Jakarta Average Occupancy Rate of Hotels in the Outside
CBD Jakarta
100%
100%
80%
80%
60%
60%
40%
40%
20%
20%
0%
Mar 2014 Mar 2014 0%
Mar 2014 Mar 2014
Jakarta CBD Outside CBD
Source: STR Global Upper Upscale Class Upscale Class
Source: STR Global

Average Occupancy Rate of Hotels in CBD Jakarta
The decreasing performance of AOR at hotels in Jakarta was
100% followed by the decreasing performance of the ADR (Average
Daily Rate). YoY comparison shows year-to-date ADR reached
USD94.14, down from USD98.87 in the same period last year.
80%
Average Daily Rate of Hotels in Jakarta

60%
USD 140.00
40%
USD 120.00
20% USD 100.00
USD 80.00
0%
Mar 2014 Mar 2014
USD 60.00
Luxury Class Upper Upscale Class
USD 40.00
Upscale Class Upper Midscale & Midscale Classes+
Source: STR Global
USD 20.00
USD 0.00
Mar 2014 Mar 2014
Jakarta CBD Outside CBD

Source: STR Global

Average Daily Rate of Hotels in CBD Jakarta
USD 200.00
USD 180.00
USD 160.00
USD 140.00
USD 120.00
USD 100.00
USD 80.00
USD 60.00
USD 40.00
USD 20.00
USD 0.00
Mar 2014 Mar 2014
Luxury Class Upper Upscale Class
Upscale Class Upper Midscale & Midscale Classes+

Source: STR Global
Average Daily Rate of Hotels in the Outside CBD

Jakarta
USD 100.00
USD 80.00
USD 60.00
USD 40.00
USD 20.00
USD 0.00
Mar 2014 Mar 2014
Upper Upscale Class Upscale Class
Source: STR Global

Industrial Estate The general issue in the industrial market remains the same, i.e.
the limited ready-to-build industrial land. Continued inquiries
Sector
for industrial land versus the limited stock of land on offer will
still characterise the overall industrial market although the
expectation of future industrial land is high. Since 2011, land
scarcity has been a major problem for most industrial estates,
and the substantial surge in land demand is at the crux of this
Supply problem. In certain industrial estate locations like in Bekasi,
quite a few potential buyers seeking industrial land come to the
Commencing in 2015, around 50 ha of new industrial land were estate frequently there was less transaction recorded because
introduced by Bekasi Fajar Industrial Estate. This new industrial the land is limited. When the landlords have more bargaining
land stock is ready for sale. Sizeable industrial land remains power, some of them that are located in highly demanded areas
limited and thus far, many plans for expansion have yet to be like Bekasi or Karawang continue to sell raw land at the price of
concluded. ready-to-use land. Buyers are taking the position of acquiring
raw land at the current price to anticipate a further increase
In 2015, the industrial market will receive quite sizeable
when land is offered in a ready-to-use condition. Buying raw
new industrial land from the expansion of several industrial
land (at the ready-to-use price) is something common.
estates. Apart from the 50 ha available above, around 5.4 ha is
also available from Suryacipta. Another expansion of 25 ha of
commercial area will also be contributed by Bekasi Fajar, This
parcel will be offered at a different price from the industrial lots. Demand
Thus far, only around 80 ha were recognised as this quarters
supply. Total sales during 1Q 2015 was much underpinned by the sales
in the Serang area. In general, sales activity during the quarter
One industrial estate located in Bekasi is accelerating the was quiet compared to the previous quarter. In Tangerang,
conclusion of land acquisition and permitting as part of the Millennium was the only active industrial estate.
expansion plans for around 600 ha. This industrial estate has yet
to confirm that the 600 ha extension plan on which they are now Overall, sales of industrial land were sluggish in this early period
working will be ready at a specified time. Likewise, two industrial of the year. Sales activity within operating industrial estates was
estates in Serang are also working on expanding the industrial relatively low. The good thing is that the total sales during 1Q
land with a total area of more than 400 ha. 2015 was much underpinned by the sales at two industrial estates
in Serang involving around 42 ha of land. Land absorption is
Apart from operating industrial estates that are actively definitely weakening compared to the same quarter last year.
expanding their zone are several upcoming industrial estates However, we still see that the industrial market is strong with
located mainly in Karawang that are part of a big consortium potential buyers continuing to ask for industrial land, although
called Trans Hexa Karawang. the inquiries are still sporadic.
Several industrial estates will focus on delivering industrial Total sales in Serang during 1Q 2015 jumped quite substantially
land that they have sold to industrial tenants. At the same time, compared to last quarter due to sales at two major industrial
expansion is still needed for developers to maintain sales. Land estates in this area, from 17.15 ha to 42.05 ha this quarter.
acquisition is one issue that takes most of the time even when the KIEC reported about 9 ha of land sales (from the total planned
land has been part of the whole master plan. transaction of 18 ha). This piece of land was sold to coal
storage company, which is related to the cement industry.
While some expansion projects are still underway, the transaction Modern Cikande, on the other hand, consistently records sales
activity continues. However, we only recognise new supply when transactions and has been always be the main driver of the
land is ready for occupation with ready infrastructure. overall transactions in the greater Jakarta area. Thus far, 33 ha
of land transactions in Modern Cikande were concluded by
five companies from the chemical, probiotic, lubrication, baby
diapers and F&B industries. All of these transactions were by
new companies.
40 Research & Forecast Report | 1Q 2015 | Industrial Estate | Colliers International

The Bekasi region concluded 30.78 ha of transactions mainly Total land sales transactions during 1Q 2015 were 82.18 ha,
contributed by Delta Silicon and GIIC. Other than that, two lower than last quarter (representing around 80% of total sales
industrial estates having smaller transactions were MM2100 and in 4Q 2014). Despite being lower than last quarter, the total land
Jababeka. Delta Silicon reported a total of 17.28 ha mainly from transactions recorded during 1Q 2015 has already equalled 26%
warehouse companies and a small amount from workshops. of last years total sales. This suggests that the industrial market
A total of 9 ha of land transactions were concluded by heavy has been on the right track to follow the sales trend of 2013 and
equipment and diaper companies this quarter in GIIC. The 2014.
auto-related industry acquired 3 ha of land in MM2100 while
smaller land parcels totalling 1.5 ha in Jababeka were sold to Land Sales Recorded During 1Q 2015 in Each
various companies like auto-related industries, warehouses,
Industrial Estate
logistics and general commercial buildings.
With limited land to offer, total land transactions in Karawang Modern Cikande
are still about the same as last quarter. Contributed only by
Suryacipta and KIIC, this quarters sales are only 6.4 ha, not very Delta Silicon
different from last quarters 8.5 ha. A new chemical industry took Krakatau Industrial Estate Cilegon
5.4 ha in Suryacipta, which helped Suryaciptas performance
after recording no transactions last quarter. This is the biggest Greenland International Industrial
land transaction in Karawang for this quarter because KIIC Suryacipta
only recorded land sales of around 1.1 ha to a new auto-parts
company from Taiwan. In Karawang, two industrial estates MM2100 Industrial Town
under the brand of Kota Bukit Indah did not record sales or
Jababeka
leasing transactions.
Millenium
Again, Millennium industrial estate consistently recorded sales,
albeit a small one of 1.82 ha and this was the only transaction CCIE
during 1Q 2015 in Tangerang. KIIC
Similar to Tangerang, the Bogor region only concluded leasing

0 5 10 15 20 25 30 35
transactions at CCIE with a total of 1.1 ha from two workshop-
related companies. hectares
Annual Industrial Land Sales

For the last year, automotive and related industries have not
1,400 been the main driver for industrial land absorption. Last year,
the automotive industry only ranked number three after the F&B
1,200 and logistics / warehouse industries. This quarter, the automotive
industry plunged to seventh position after consumer goods,
1,000 warehouse, F&B, building materials, chemicals, and heavy
equipment industries. However, this condition cannot be used
800 to predict the overall picture of new tenant composition for the
Hectares
full year of 2015, as the market will be very dynamic. One thing
600 that we can opine is that the warehouse and logistics companies
together with consumer goods will be the most active tenants for
400 this year.
200
0
2011
2013
2006
2008
2009
2015YTD
2007
2010
2012
2014
Jakarta Bogor Bekasi Tangerang Karawang Serang


Types of Activities Industries During 1Q 2015 Greater Jakarta Industrial Land Price
USD 250
Building
Logistics/ Heavy USD 200
Material
Warehousing Equipment
Machinery 10.95%
21.64% 7.30%
1.34% Medical
Chemicals
USD 150
1.25%
7.95% Others
1.28% USD 100
Plastics
1.22%
USD 50
Automotive
Food & 5.48%
Consumer
Goods Beverage USD 0
27.99% 13.60%
2006
2008
2009
2007
2010
2012
2014
2011
2013
2015YTD
Bogor Bekasi Tangerang Karawang Serang
Industrial Land Prices and Maintenance Costs*

Land Price
maintenance costs
region Land price (per sq m)
(per sq m per month)
One industrial estate in Bekasi introduced a new land price of
lowest highest average lowest highest average
USD230/sq m, following the last quarters adjustment made by
Bogor USD 120.0 USD 218.7 USD 169.3 USD 0.06 USD 0.06 USD 0.06
the industrial estate adjacent to it. One industrial estate in this
Bekasi USD 195.0 USD 250.0 USD 222.5 USD 0.06 USD 0.08 USD 0.07
location with the biggest land bank kept adjusting the land price
Tangerang USD 148.4 USD 156.2 USD 152.3 USD 0.03 USD 0.08 USD 0.06
and monitored the price dynamics, particularly in Bekasi and
Karawang USD 170.0 USD 200.0 USD 185.0 USD 0.05 USD 0.10 USD 0.06
Karawang. To date, they adjusted the price from USD185 to 195/
Serang USD 117.2 USD 148.4 USD 132.8 USD 0.03 USD 0.05 USD 0.04
sq m this quarter. Other than these two industrial estates, prices
have been stable. The average land price for available industrial *1USD = Rp 12,804
plots in Bekasi was registered at USD222.47, about the same as Source: Colliers International Indonesia - Research
the price last year.
Another industrial estate in Serang was also quite confident Maintenance Cost
with the new price of IDR1.9 million/sq m, representing a 8.5%
increase over last quarter. This brought the average industrial In general, maintenance costs stood at the same level as last
land price in Serang to USD132.77/sq m (after converting from quarter. Only in Serang did two operating industrial estates
local currency to US dollars). announce adjustments in service charges during the quarter
under review. The average service charge in Serang was IDR449/
Other than these two regions, industrial land prices are stable in sq m/month last quarter and in 1Q 2015 it rose to IDR592/sq m/
Bogor, Tangerang and Karawang. There might be a slight price month.
adjustment during 2015, depending on the economy and sales
performance for the full year of 2015.

Greater Jakarta Industrial Maintenance Cost
$0.10
$0.08
US $/ sq m/ month
$0.06
$0.04
$0.02
$0.00
2011
2013
2006
2008
2009
2015YTD
2007
2010
2012
2014
Bogor Bekasi Tangerang Karawang Serang
Concluding Thought
The industrial market initiated the year with relatively good
performance with total sales for 1Q 2015 about a quarter of sales
in the full year of 2014. Albeit lower than last quarter, at least the
industrial market has signalled for further recovery as buyers
have been actively looking for industrial land during the quarter.
Land availability should not become a crucial issue, although

some prominent estates have find it difficulties in providing
big parcel land in prime location. Nevertheless several under-
construction industrial estates largely located in Karawang and
some other estates in Serang, Tangerang and Bekasi are working
on construction of industrial which would become significant
land bank in the future.
The cancellation of mega project Cilamaya port would broaden

the opportunity for industrial location to move further east to
Subang and Purwakarta. The government has indicated that
Cilamaya project would be shifted to other areas that would
not interfere with the very important Pertamina facilities for
distributing gas when the Cilamaya project is executed.

502 offices in Primary Authors:
Ferry Salanto
67 countries on Associate Director | Jakarta

62 21 3043 6730
Ferry.Salanto@colliers.com
6 continents
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Latin America: 24
Asia: 39
ANZ: 160
EMEA: 108
Colliers International Indonesia
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The information contained herein has been obtained from sources deemed reliable. While every reasonable effort has been made to
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Jakarta Property Market Report

2 Research & Forecast Report | 1Q 2015 | Highlight | Colliers International

Office Space 400,000 sq m of office space projected to be in operation before

Offered for Lease

0 With a total projected 260,500 sq m of office space in 2015, a new

4,000,000 projected additional space per year up to 2019.

Existing Supply Annual Supply

3 Research & Forecast Report | 1Q 2015 | Office | Colliers International

500,000 least up to 2017. We expect to see additional supply in the outside

2015F 2016F 2017F 2018F 2019F

Outside CBD Office Cumulative Supply

For Lease For Sale In Planning

2,000,000 Almost 47% of future office buildings in the outside CBD

1,500,000 (no construction activity in the field). The projects under

Existing Supply Annual Supply

4 Research & Forecast Report | 1Q 2015 | Office | Colliers International

TB Simatupang continues to bolster its position as a secondary 0

Annual Future Office Space in TB Simatupang 150,000

Outside CBD excluding TB Simatupang TB Simatupang

For Lease For Sale In Planning

5 Research & Forecast Report | 1Q 2015 | Office | Colliers International

2015 Sinarmas MSIG Sudirman 75,000 For Lease Under Construction

6 Research & Forecast Report | 1Q 2015 | Office | Colliers International

oUTSIDE CBD EXCLUDING TB SIMATUPANG

2015 Menara Sentraya Blok M 52,072 For Sale Under Construction

2015 Graha MRA 13,000 For Lease Under Construction

7 Research & Forecast Report | 1Q 2015 | Office | Colliers International

2,000,000 40% 1Q 2014 2014 2015YTD

1,500,000 30% Premium Grade A Grade B Grade C

technology industries, such as telecommunications will also

About 62% of the total remaining space in the CBD as of 1Q

8 Research & Forecast Report | 1Q 2015 | Office | Colliers International

Commitment Demand for Future Office Buildings

9 Research & Forecast Report | 1Q 2015 | Office | Colliers International

0 0% In the high specifications class of buildings charging in US

10 Research & Forecast Report | 1Q 2015 | Office | Colliers International

IDR 250,000 IDR 500,000

IDR 200,000 IDR 400,000

IDR 150,000 IDR 300,000

IDR 100,000 IDR 200,000

IDR 50,000 IDR 100,000

USD 50.00 USD 50.00

11 Research & Forecast Report | 1Q 2015 | Office | Colliers International

Outside CBD excluding TB Simatupang TB Simatupang

Source: Colliers International Indonesia - Research

12 Research & Forecast Report | 1Q 2015 | Office | Colliers International

Service charges in the CBD were IDR92,173/sq m/month as of

Service Charges of Office Buildings in Jakarta

CBD Outside CBD

Although service charges continued to increase, around 35% of

13 Research & Forecast Report | 1Q 2015 | Office | Colliers International

Average Asking Price of Strata-title Office Space 200,000

per Sq m in Jakarta 180,000

IDR 40,000,000 80,000

IDR 30,000,000 40,000

Annual Supply Annual Take-up

The high commitment of office transactions has kept the average

In this quarter, the average asking price of vacant space in

14 Research & Forecast Report | 1Q 2015 | Office | Colliers International

bolster the absorption of office space.

Cumulative Supply Cumulative Take-up

Pre-Committed Demand of Future Office for Sale in

0 50,000 100,000 150,000 200,000 250,000