Q1 2017 ColliersQuarterly Jakarta R1

Colliers Quarterly
Q1 2017
25 April 2017
JAKARTA PROPERTY MARKET REPORT
Accelerating success.
Highlights
Office Sector Industrial Estate Sector
Office developers have gone through a challenging time during the A total of 160 hectares of new industrial land parcels will be
last three years, as occupancy continued to drop and is now delivered by KIIC by the end of 2017. In the meantime, total in-
registered at 83.3% in the CBD and 81.9% outside the CBD. This dustrial land sales in Q1 2017 were 51.8 hectares representing
situation has created a lot of pressure on landlords to reduce asking 30% of the total transaction volume last year which was even
base rental rates to below IDR300,000/sq m/month in the CBD. higher than sales during the first two quarters of last year. Land
Meanwhile there are additional office buildings to be completed prices remain unchanged; sales during the first quarter were
before the end of 2017 - twelve new buildings in the CBD totaling contributed by only six industrial estates (only two IEs recorded
731,164 sq m and nine new buildings totaling 197,609 sq m outside a substantial amount of sales). Colliers believes that the indus-
the CBD. trial market will strengthen primarily on the back of sound pro-
jected economic growth.
Apartment Sector
Going forward, the pipeline of new apartment units will be sig- Hotel Sector
nificant. During Q1 2017, a total of 59,017 apartment units were Two new hotels were opened in Jakarta during the quarter pro-
under construction of which 21,167 units are expected to reach viding a total of 342 rooms which brought the total star-rated
completion before the end of 2017, followed by 28,303 and 9,547 hotels in Jakarta to 192, comprising 39,310 rooms. For the re-
units in 2018 and 2019, respectively. The annual sales of apart- mainder of 2017, there will be a total of 4,356 additional hotel
ments in Jakarta continue to increase, but at a slower rate than rooms in Jakarta that will bring the total number in Jakarta to
in the past. The cumulative take-up rate for existing and under 43,666 rooms, representing a 12% growth in supply YoY. The
construction projects dropped modestly this quarter to 85.9%. Average Daily Rate (ADR) dropped from USD81.19 last quarter
Meanwhile, the average apartment price in Jakarta was set at to USD79.45, primarily triggered by the lower occupancy (AOR)
IDR32.1 million/sq m, slightly up by 1.4% QoQ. from 57.9% last quarter to only 50.7% this quarter.
Retail Sector
Three shopping centres to be completed in DKI Jakarta during
the remainder of 2017 are expected to bring 139,000 sq m of
new supply to the market which brings the current cumulative
supply to 4.57 million sq m. The average occupancy rate re-
mained stable at 86%, whilst the average rents of typical re-
tail space in Jakarta increased 4.4% QoQ to IDR587,904/sq m/
month. In Jabodetabek outside DKI Jakarta, asking rents grew
by 2% to 4% QoQ to an average of IDR353,790/sq m/month.
Colliers Quarterly | Q1 2017 | Jakarta | Colliers International

Office Sector Supply
Ferry Salanto Senior Associate Director | Research Office Spaces Offered For Lease
The office market has gone through a gloomy period CBD
over the last three years, as occupancy continued to
decrease. In the end, landlords were pressured to drop
their asking rental rates to below IDR300,000/sq m/ Newly Operating Office Buildings in CBD
month. Office Building Marketing
Location SGA (sq m)
Project Name Scheme
Forecast at a glance Satrio Tower

Menara Pertiwi
Satrio
Mega Kuningan
31,604
41,456
For Lease
For Sale
Convergence Rasuna Said 36,367 For Lease &
Supply Sale
The cumulative supply is expected to reach
Source: Colliers International Indonesia - Research
6.22 million sq m in the CBD in 2017, a 13.3%
increase YoY. Nine office buildings will meet
completion and bring around 620,000 sq m of Three office buildings in the CBD officially began operation
new additional office spaces in the CBD in the and brought around 110,000 sq m of new office spaces in
remaining months of 2017. Q1 2017, bringing the cumulative supply to 5.59 million
sq m. A total of 12 office buildings (including the above-
The cumulative supply is expected to reach 3.20 mentioned three buildings) will start operation and bring
million sq m outside the CBD in 2017, which is around 730,000 sq m of additional office spaces in 2017,
a 7% increase. By the end of 2017, a total of which is double than in the previous year. These future of-
170,000 sq m of new office spaces will be con- fice buildings are confident in meeting their completion in
tributed by eight office buildings located outside 2017, based on the current construction progress.
the CBD.
Apart from the office building pipeline announced for com-
Occupancy pletion in 2017-2020 in the CBD, there are no further ad-
The CBD office market anticipates a further de- ditional future buildings to be launched. Developers have
cline in occupancy to below 80% by the end of become aware of the oversupply situation and avoid add-
2017. A large projected additional supply will put ing new projects during that critical period. Annual supply
more pressure on occupancy performance, al- projection during that period will be dynamic, depending
though demand is expected to improve. Occu- on the construction progress. As indicated before, total
pancy is also expected to drop outside the CBD. projected office spaces in 2018 will be lower than those in
2017, mainly because several office buildings that are ex-
Rent pected to meet completion in 2018 are currently progress-
Rents will stabilise by the end of 2017 after de- ing slowly in construction. Furthermore, these upcoming
creasing around 6% in 2016. Landlords will opt office buildings will be rescheduled for completion in the
to restrain base rental rate from going up amidst years ahead. We are also monitoring the construction of
the very tough tenant market situation. some office buildings that will bring huge additional office
spaces, such as Icon Tower, Tower Two at The City Cen-
tre, Chitaland, Millenium Centennial Tower and Thamrin
Nine. The completion of these office buildings will signifi-
cantly impact the supply projection in 2019-2020.
One existing office building on Jalan Rasuna Said will stop CBD Office Cumulative Supply based on Area
operating and will be demolished by mid-2017. The vacant
land-to-be will be redeveloped into a new office building, Satrio
which is expected to meet completion in 2020.
Gatot Subroto
CBD Office Cumulative Supply Mega
Kuningan
8,000,000
Rasuna Said
7,000,000
Sudirman
6,000,000
Thamrin
5,000,000
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
0
4,000,000
sq m
3,000,000
2,000,000 sq m
Cumulative Supply 2017YTD Future Supply 2017F - 2020F
1,000,000
0
2010
2011
2012
2013
2014
2015
2016
2017F
2018F
2019F
2020F
CBD Office Annual Supply based on

Existing Supply Additional Supply YTD Supply Future Supply Marketing Scheme
Source: Colliers International Indonesia - Research 800,000
700,000
CBD Office Annual Supply
600,000
900,000
500,000
800,000
sq m
400,000
700,000
300,000
600,000
500,000 200,000
sq m
400,000 100,000
300,000
0
200,000 2010 2012 2014 2016 2018F 2020F
100,000 For Lease For Sale

0
2017F
2018F
2019F
2020F
2010
2011
2012
2013
2014
2015
2016
Additional Supply YTD Supply Under Construction In Planning

4 Colliers Quarterly | Q1 2017 | Jakarta | Colliers International

Outside the CBD Outside the CBD Office Cumulative Supply
4,000,000
Newly Operating Office Buildings in Outside the CBD
3,500,000
Office Building Marketing
Location SGA (sq m)
Project Name Scheme
3,000,000
Puri Indah Financial Kembangan 38,500 For Lease &
Tower Utara Sale 2,500,000
sq m
2,000,000
1,500,000
Puri Indah Financial Tower began operation and brought
the cumulative supply outside the CBD to 3.03 million sq 1,000,000
m as of Q1 2017. In addition to Puri Indah Financial Tower,
eight other office buildings outside the CBD will be com- 500,000
pleted and bring around 160,000 sq m of additional office
0
spaces in the remainder of 2017. All of these office build-
2010
2011
2012
2013
2014
2015
2016
2017F
2018F
2019F
2020F
ings outside the CBD will raise the cumulative supply to
6.6% YoY by the end of 2017.
Furthermore, the projected office supply will relatively be Existing Supply Additional Supply YTD Supply Future Supply
stable outside the CBD, at around 230,000 sq m per an- Source: Colliers International Indonesia - Research
num between 2018 and 2020. Most of these future office
buildings are currently under construction, including The
Unity Square that is owned by Pakuwon. The Unity Square Outside the CBD Office Cumulative Supply
will become the third office tower within a mixed-use de- Based on Area
velopment in Kota Kasablanka (South Jakarta) and will be-
come the largest future office building in 2017-2020 outside TB Simatupang
the CBD. In addition, SOHO Pancoran and One Belpark
Office will contribute additional office spaces by the end of
West Jakarta
2020 in South Jakarta.
Based on area, the total amount of future office spaces in East Jakarta
South Jakarta (excluding TB Simatupang) will be the third-
largest outside the CBD. Central Jakarta and West Jakarta North Jakarta
will contribute the largest future supply outside the CBD
from 2017 to 2020. Most of the future supplies in Central South Jakarta
Jakarta will be concentrated in Kemayoran, whilst Kem-
bangan is expected to become a growing commercial area
Central Jakarta
in West Jakarta. Except Ciputra International, we recorded
two office buildings that are ready to open in 2017. Over-
all, Central Jakarta and West Jakarta will contribute around 0 300,000 600,000 900,000 1,200,000
60% of the total number of projected supply outside the sq m
CBD between 2017 and 2020. Cumulative Supply 2017YTD Future Supply 2017F - 2020F
After saturating the market with significant amount of office Source: Colliers International Indonesia - Research
spaces in 2015, TB Simatupang area will see limited future
supply. Without new additional spaces forthcoming, the to-
tal supply in TB Simatupang remained at 957,328 sq m as
of Q1 2017. We recorded only five office buildings that are
expected to bring around 145,000 sq m of additional office
spaces by the end of 2020 in TB Simatupang. Arkadia Tow-
er G has recently begun construction in TB Simatupang, as
well as three other office buildings, including Zuria, a small
office building that will contribute additional spaces of less
than 7,000 sq m in 2017.

Outside the CBD Excluding TB Simatupang TB Simatupang Annual Supply
Annual Supply
250,000
400,000
200,000
350,000
300,000
150,000
250,000
sq m
sq m
200,000 100,000
150,000
50,000
100,000
50,000 0
2010
2011
2012
2013
2014
2015
2016
2017F
2018F
2019F
2020F
0
2017F
2018F
2019F
2020F
2010
2011
2012
2013
2014
2015
2016
Annual Supply Additional Supply YTD

Annual Supply Additional Supply YTD Under Construction In Planning
Under Construction In Planning Source: Colliers International Indonesia - Research
New Supply Pipeline

projected SGA* status
Office building projects name location Marketing scheme
completion (sq m) development
CBD
2017 Telkom Landmark Tower II Gatot Subroto 65,000 For Lease Under Construction
2017 Menara Palma 2 Rasuna Said 50,000 For Lease Under Construction
2017 Ciputra World Jakarta 2 Satrio 70,000 For Lease & Sale Under Construction
2017 The Tower Gatot Subroto 56,492 For Sale Under Construction
2017 PCPD Tower Sudirman 90,500 For Lease Under Construction
2017 Prosperity Tower (within District 8) Sudirman 71,545 For Sale Under Construction
2017 Treasury Tower (within District 8) Sudirman 139,000 For Sale Under Construction
2017 Revenue Tower (within District 8) Sudirman 40,000 For Lease Under Construction
2017 Sopo Del Tower B Mega Kuningan 39,200 For Lease Under Construction
2018 Mangkuluhur Tower Gatot Subroto 53,000 For Lease & Sale Under Construction
2018 Lippo Thamrin Office Tower Thamrin 16,500 For Sale Under Construction
2018 Sequis Tower Sudirman 78,000 For Lease Under Construction
2018 Sopo Del Tower A Mega Kuningan 64,000 For Lease Under Construction
2018 Sudirman 7.8 Sudirman 52,000 For Sale Under Construction
2018 World Capital Tower Mega Kuningan 72,000 For Lease & Sale Under Construction
2018 World Trade Center III Sudirman 70,000 For Lease Under Construction
2018 Astra Tower Sudirman 80,000 For Lease Under Construction
2019 Tower Two at The City Center Sudirman 101,260 For Lease & Sale Under Construction
2019 T Tower Gatot Subroto 24,000 For Lease & Sale Under Construction
2019 Thamrin Nine Thamrin 97,500 For Lease Under Construction
2019 Millenium Centennial Tower Sudirman 120,000 For Lease Under Construction
2020 Icon Tower Sudirman 72,500 For Lease Under Construction
2020 Chitaland Satrio 90,000 For Lease Under Construction
2020 Indonesia Satu North Tower Thamrin 130,000 For Lease Under Construction
2020 Indonesia Satu South Tower Thamrin 120,000 For Lease Under Construction
continued

projected SGA* status
Office building projects name location Marketing scheme
completion (sq m) development
continuation
2020 Surya Semesta Internusa (SSI) Tower Rasuna Said 80,000 For Lease In Planning
2020 Gayanti City Gatot Subroto 25,000 For Lease In Planning
Outside the CBD (excluding TB Simatupang)
2017 Gallery West Kebun Jeruk 29,000 For Sale Under Construction
2017 Tamansari Parama Wahid Hasyim 10,800 For Sale Under Construction
2017 One Belpark Office Pondok Labu 17,800 For Lease Under Construction
2017 St Moritz Office Tower Puri Indah 19,500 For Sale Under Construction
2017 BKP Office Tower Sunter 16,000 For Lease Under Construction
2017 Hermina Office Building Kemayoran 20,000 For Sale Under Construction
2017 Puri Matahari Puri Kembangan 28,925 For Lease Under Construction
Utara
2018 SOHO Pancoran Pancoran 30,000 For Sale Under Construction
2018 One Tower Kemayoran 21,400 For Sale Under Construction
2018 Ciputra International Puri 1 Phase 1 Puri Kembangan 15,000 For Lease Under Construction
2019 The Unity Square Casablanca 80,000 For Lease Under Construction
2019 MNC Tower II Kebun Sirih 60,000 For Lease Under Construction
2019 Agung Sedayu Office Tower Pantai Indah Kapuk 50,000 For Lease Under Construction
2019 Ciputra Business District Kemayoran Tower 1 Kemayoran 40,000 For Sale Under Construction
2019 Ciputra Business District Kemayoran Tower 2 Kemayoran 40,000 For Lease Under Construction
2019 Ciputra International Puri Phase 2 Puri Kembangan 15,000 For Lease In Planning
2019 Ciputra International Puri 1 Phase 3 Puri Kembangan 15,000 For Lease In Planning
2019 Ciputra Internatinal Puri 2 Phase 3 Puri Kembangan 15,000 For Lease In Planning
2019 Jakarta Box Tower Kebun Sirih 36,000 For Lease In Planning
2020 Menara Jakarta Kemayoran 70,000 For Sale In Planning
2020 Lippo Tower Holland Village Cempaka Putih 27,000 For Sale In Planning
TB Simatupang
2017 Zuria 6,584 For Lease Under Construction

2018 The Sima 60,000 For Lease Under Construction
2019 Arkadia Tower G 30,000 For Lease Under Construction
2019 Beltway Office Park Tower 4 10,000 For Lease In Planning
2020 The Manhattan Square Tower 2 39,375 For Lease & Sale Under Construction

The Occupancy Averages Occupancy in the CBD based on
Building Grade
CBD 100%
The average occupancy rates continued to decline mod- 95%

erately QoQ and were recorded at 83.8% as of Q1 2017. 90%
Whilst Indonesias economy is forecasted to improve, oc- 85%
cupancy rate is expected to register around 78-79% by the
80%
end of 2017, with total projected office spaces of around
620,000 sq m in the remainder of 2017. 75%
70%
The overall occupancy rate dropped from 85.0% to 83.8% 65%
QoQ, mainly contributed by Grade A buildings that domi-
60%
nate the overall office space stock in the CBD. As Grade
A office buildings constitute about 45.2% of the total office 55%
spaces in the CBD, any dynamic change in this building 50%
category will somewhat modify the overall condition of the
2010
2011
2012
2013
2014
2015
2016
2017YTD
office market.
Regarding the tenant market, every new building will find

Premium Grade A Grade B Grade C
a challenging time in securing tenants. The pre-committed
absorption of office buildings for lease in 2017 only reached Source: Colliers International Indonesia - Research
25.5%, whilst the committed absorption of office buildings
in 2016 was recorded at only 33.0%.
YoY Occupancy Performance in the CBD
100%
Occupancy changes in the CBD (%)
95%
Office Building Grade Q1 2016 Q4 2016 Q1 2017
90%
Premium 89.4 76.9 78.9
Grade A 84.7 79.5 79.3 85%
Grade B 93.1 91.6 90.6 80%

Grade C 90.8 88.0 88.7 75%
Overall 88.6 85.0 83.8 70%
65%
60%
Average Occupancy Rates in the CBD
55%
100%
50%
95% Thamrin Sudirman Rasuna Mega Gatot Satrio
Said Kuningan Subroto
90%
85% Q1 2016 Q1 2017
80% Source: Colliers International Indonesia - Research
75%
70%
65%
60%
55%
50%
2017F
2010
2011
2012
2013
2014
2015
2016
2017YTD

Pre-Committed Absorption at Office Buildings Occupancy changes in Outside the CBD (%)
for Lease in the CBD in 2016 - 2018
Area Q1 2016 Q4 2016 Q1 2017
Outside CBD excluding TB 90.7 87.9 85.4
Simatupang
2018F TB Simatupang 80.9 72.5 74.1
Average Occupancy Rates in Outside the CBD

2017F
100%
90%
80%
2016 70%
60%
50%
0 70,000 140,000 210,000 280,000 350,000
40%
sq m
30%
Space Absorbed Space Unabsorbed
20%
10%
0%
Outside the CBD 2010
2011
2012
2013
2014
2015
2016
2017YTD
Despite moderately, occupancy continued to decline QoQ
in outside the CBD. Some office buildings that began op-
Outside CBD exclude TB Simatupang TB Simatupang
eration in 2015 still register low occupancy rates, which
contributed to an overall occupancy of 81.9% outside the Source: Colliers International Indonesia - Research
CBD. The rest of 2017 will be tough for the office market
outside the CBD, particularly given a substantial amount of
upcoming office supply. Pre-Committed Absorption at Office Buildings
for Lease in Outside the CBD in 2016 2018
The absence of new office buildings this quarter helped lift
the average occupancy in TB Simatupang. The average
occupancy was recorded at 74.1%, and this upward trend
2018F
may continue given the limited future supply in TB Sima-
tupang.
Other areas outside the CBD (excluding TB Simatupang)

registered occupancy of above 77%. Meanwhile, non-fa- 2017F
vourite office locations such as East Jakarta may capture
high occupancy since this area has seen no new office
supplies for almost 20 years. High occupancy was also
recorded in Central Jakarta, where several old office build-
ings are fully occupied, benefiting from their low rental tar- 2016
iff. North Jakartas occupancy was below 80% mainly due
to the poor performance of newly operating office buildings,
which provided large office spaces that began operation in 0 20,000 40,000 60,000 80,000 100,000
2016.
sq m
Space Absorbed Space Unabsorbed
Office buildings operating in 2017 were only absorbed at
around 40%, whilst those that began operation in 2016 Source: Colliers International Indonesia - Research
were absorbed 50% as of Q1 2017.

Asking Rents The Range of Asking Rents Based on Building
Grade
CBD IDR900,000
In line with the occupancy performance, the average rents IDR800,000

in the CBD also showed a declining trend over the last
three quarters. Newly operating office buildings offering IDR700,000
base rental below market prices helped boost occupancy
IDR600,000
at first year operation. In addition, some office buildings an-
nounced to lower base rental tariff starting from IDR50,000 IDR500,000
to IDR75,000 in 2017. Such condition caused the average
rental rate to record at IDR295,729/sq m/month reflecting IDR400,000
a drop by 14.4% YoY.
IDR300,000
Based on building grades, average rents for grade B and IDR200,000

C office buildings dropped significantly YoY. Slowing office
demand caused premium and grade A office buildings to IDR100,000
also adjust rental rates lower in order to maintain the ex-
isting tenants. We have seen a continual decline in rental IDR0
rates by 17% YoY. Premium Grade A Grade B Grade C

In some cases, we recorded a few office buildings adjusted
rental tariff higher due to limited vacant spaces. Several
office building are currently offering base rental of above The Range of Asking Rents Based on Each
IDR300,000/sq m/month, most of these buildings hold lim-
Market
ited vacant spaces. Nevertheless, under the current market
pressure experienced by most landlords, there is always IDR1,000,000
possibility to be granted for reduction of any transaction
involving large spaces. Office buildings with high vacancy
will have limited options but to consider rental adjustment IDR800,000
to catch up with the required occupancy level in order to

cover the operating cost. IDR600,000
Average Asking Rents in the CBD (All Classes IDR400,000

Office Buildings)
IDR400,000 IDR200,000
IDR350,000
IDR0
IDR300,000
Kuningan
Sudirman
Thamrin
Subroto
Satrio
Rasuna
Gatot
Said
Mega
IDR250,000
IDR200,000
IDR150,000
IDR100,000
Outside the CBD
IDR50,000
Average Rents
IDR0 TB Simatupang
Overall Outside CBD ONLY AT TB
and
2010
2011
2012
2013
2014
2015
2016
2017YTD
Outside the excluding TB

surrounding SIMATUPANG
CBD Simatupang
areas
Q1 2017 IDR228,008 IDR214,607 IDR209,852 IDR246,154
Source: Colliers International Indonesia - Research Source: Colliers International Indonesia - Research

The average rents showed an increasing trend in the last The Range of Asking Rents Based on Each
two quarters outside the CBD, albeit moderately. Sever- Market
al office buildings with high occupancy rates confidently
raised base rental starting at IDR50,000 up to IDR100,000 IDR400,000
in 2017. These office buildings were actually categorised
IDR350,000
as old office buildings that offered base rental between
IDR80,000 and IDR130,000/sq m/month in the previous IDR300,000
year. A newly operating office building also contributed
IDR250,000
to bring the average rents currently at IDR228,008/sq m/
month outside the CBD. Based on area, the average rents IDR200,000
were recorded at IDR214,607/sq m/month outside the CBD
IDR150,000
(excluding TB Simatupang).
IDR100,000
The average rents continued to decrease in TB Simatu-
IDR50,000
pang and the surrounding areas (including Pondok Indah),
registering at IDR209,852/sq m/month as of Q1 2017, IDR0
which is a drop of around 10% QoQ. Due to large prevailing
TB Simatupang
Central Jakarta
North Jakarta
West Jakarta
South Jakarta
East Jakarta
vacancies, an office building located at Pondok Indah low-
ered the base rental in 2017. Meanwhile, office buildings
located at Simatupang corridor recorded the average rents
at IDR246,154/sq m/month as of Q1 2017 and maintained
to achieve the highest average rents outside the CBD. Source: Colliers International Indonesia - Research
Average Asking Rents in Outside the CBD The Range of Asking Rents Based on Building
IDR300,000 Grade
IDR400,000
IDR250,000
IDR350,000
IDR200,000
IDR300,000
IDR150,000
IDR250,000
IDR100,000
IDR50,000 IDR200,000
IDR0 IDR150,000
2010
2011
2012
2013
2014
2015
2016
2017YTD
IDR100,000
IDR50,000
Outside CBD (excl. TB Simatupang)
TB Simatupang (incl. Pondok Indah Area) IDR0
Source: Colliers International Indonesia - Research Grade A Grade B Grade C

Service Charges The Range of Service Charge based on
Marketing Scheme in the CBD
Service Charges IDR150,000
IDR100,000
IDR120,000
IDR80,000
IDR60,000 IDR90,000
IDR40,000
IDR60,000
IDR20,000
IDR30,000
IDR0
2010
2011
2012
2013
2014
2015
2016
2017YTD
IDR0
for Lease Strata-title
CBD Outside CBD Source: Colliers International Indonesia - Research
The Range of Service Charge based on

Service charges have been relatively stable for the last three Building Grade in the CBD
quarters. In the CDB, three newly operating office buildings
offer lower service charges than market rates. This condi- IDR150,000
tion brought the average service charge at IDR79,714/sq

m/month as of Q1 2017, which was relatively flat QoQ.
IDR120,000
Some office buildings offered a service charge tariff be-
tween IDR100,000 and IDR130,000. Meanwhile, the av-
erage service charges in Jalan Thamrin were recorded at IDR90,000
IDR92,317/sq m/month, the highest in the CBD as of Q1
2017. The lowest service charges were recorded at Rasuna
Said, at IDR69,420/sq m/month, contributed by more than IDR60,000
half of the total number of office buildings at Rasuna Said,
which still offered a service charge below current market
prices of the CBD. By contrast, Wisma Budi (in Rasuna IDR30,000
Said) quotes the highest service charge in the CBD. The
other office buildings that offer very high service charges
are Tamara Centre and Wisma Indosemen (in Sudirman). IDR0
Premium Grade A Grade B Grade C
Based on marketing scheme, the average service charges
were recorded at IDR88,762/sq m/month for office for lease Source: Colliers International Indonesia - Research
in the CBD, whilst strata-title offices offer service charge at
an average of IDR48,181/sq m/month.
Outside the CBD, the average service charges were re-

corded at IDR64,392/sq m/month for office spaces for
lease and IDR47,037/sq m/month for strata-title office.
Overall, service charges were recorded at IDR59,670/sq
m/month, which is a 3.4% increase QoQ.

Service Charges in Outside the CBD Strata-title Office
IDR150,000 The relatively slow sales did not push landlords to reduce
asking prices, and therefore it did not impact the drop in
the average asking prices. Office space prices in the CBD
IDR120,000
remained relatively flat QoQ at IDR55.5 million/sq m. Some
office buildings were offered starting at IDR40 million to
IDR55 million/sq m in the secondary market for available
IDR90,000
spaces ranging between 600 sq m and 2,000 sq m.
Pre-committed take-up rates achieved around 70% for

IDR60,000
strata-title office supply in 2017.
IDR30,000
Outside the CBD area, office prices are offered starting
at IDR20 million to IDR42 million/sq m with average ask-
ing price at IDR36.7 million/sq m. Again, the location de-
IDR0 termined the price. One office building located at Blok M
Outside CBD excluding TB TB Simatupang (Kebayoran Baru), with proximity to the CBD, achieved
Simatupang an asking price at IDR50 million/sq m. In the secondary
market, two office buildings located in Kelapa Gading and
Source: Colliers International Indonesia - Research TB Simatupang were offered at IDR40 million/sq m for the
secondary market.
The Range of Service Charge Based on
TB Simatupang itself offered office spaces for sale at rela-
Marketing Scheme tively the same price with other areas outside the CBD,
IDR150,000 i.e. between IDR28 million and IDR37 million/sq m. In fact,
unsold spaces in existing office buildings and the number
of projected office spaces for sale are limited in TB Simatu-
IDR120,000 pang. Average prices were recorded relatively flat QoQ at
IDR34.1 million/sq m in TB Simatupang.
IDR90,000 We have witnessed an impressive sales performance of

new and future strata-title office buildings, highlighted by
high pre-committed take-up rates that are registered at
IDR60,000 75%. Furthermore, the strata-title supply pipeline also sug-
gests that the number of this type of office buildings is fairly
limited compared to office for lease. Nonetheless, the mar-
IDR30,000
ket is currently holding a great number of vacant spaces
that might reduce the appetite of investor-type of buyers
to purchase strata-title office spaces. Going forward, we
IDR0
opine that office price will be stagnant, until rental market
for Lease Strata-title
gains strength.

Average Asking Prices based on Spaces Pre-Committed Absorption of Strata-Title
Available Office Buildings for Sale in the CBD
IDR60,000,000
IDR50,000,000 2018F
IDR40,000,000
IDR30,000,000
2017F
IDR20,000,000
IDR10,000,000
2016
IDR0
2010
2011
2012
2013
2014
2015
2016
2017YTD 0 100,000 200,000 300,000 400,000 500,000

sq m
CBD TB Simatupang Outside CBD excluding TB Simatupang Space Absorbed Space Unabsorbed
The Range of Asking Prices in the CBD Based Pre-Committed Absorption of Strata-Title
on Area Office Buildings for Sale in Outside the CBD
IDR120,000,000
2019F
IDR100,000,000
IDR80,000,000
2018F
IDR60,000,000
2017F
IDR40,000,000
IDR20,000,000
2016
IDR0
CBD Outside CBD TB Simatupang 0 50,000 100,000 150,000 200,000
excluding TB
Simatupang sq m
Space Absorbed Vacant Space

Concluding Thought
Enquiries from e-commerce business, information and
technology, and telecommunication industries have
helped fuel office industry apart from other traditional ten-
ants. Landlords tend to maintain rental rates or even pro-
vide more discounts, particularly when a building needs to
catch up with the minimum occupancy target in order to
cover their operating costs.

Apartment Sector Forecast at a glance
Supply
Ferry Salanto Senior Associate Director | Research The Jakarta apartment market has not shown
any discernible trend this time; the prevailing
The demand for apartments has yet to rebound in the first overall theme is gradual recovery. After the tax
quarter of 2017. During the reviewed quarter, average take- amnesty period, we think consumers will be
up rate in the CBD area showed a modest increase from more confident in spending their money, as they
the previous quarter. We think there remains ample liquid- have less concern with their expenses. This is
ity in the market to drive enough sales to meet the supply, also in line with developers expectation, as re-
particularly for middle to upper segment projects. Moreover, flected by their confidence in setting a higher
we think that consumer purchasing power should continue marketing sales target in 2017 at 15-50% YoY
to improve gradually, as supported by the overall economic growth from 2016.
improvement, and thus translated into a more aggressive
spending outlook post tax-amnesty programme. Thus, we Demand
expect H2 2017 to become a turning point in the apartment Jakarta apartment market have not shown dis-
market, as we think buyers should be less concerned with cernible trend this time and the overall theme
tax scrutiny, and would again opt to purchase apartments remains gradual recovery. After tax amnesty
as a form of investment. period, we think that consumers will have more
confident in spending their money as they have
less concern on their expenses. This is also in-
line with developers expectation as reflected by
their confidence attitude by setting higher 2017s
marketing sales target at 15-50% YoY growth
from 2016.
Rent
Accepting market conditions, landlords were
more realistic, as they deployed flexible rental
strategies in the upcoming quarters. Further-
more, with the additional future supply and weak-
ening demand, we expect rents to come under
more pressure as availability arises.
Price
The average asking price of apartments in Jakar-
ta rose by 1.4% to IDR32.1 million/sq m, slightly
higher than in the previous quarter of 1.3%. We
expect apartment price in the near term rather
than in the longer term, given the governments
supportive stance will take into effect in the sec-
ond half of 2017.
APARTMENT FOR STRATA- projects scattered in non-prime areas, including Central
and West Jakarta. The Nerine Tower was the eighth tower
TITLE handed over from The Green Pramuka Citys mixed-use
development (apartment and mall) project, whilst Elpis
Residence and Paradise Mansion were brand new proj-
ects that are exclusively for residential purposes. Including
Supply the newly completed projects, the total number of exist-
ing strata-title apartments in Jakarta has reached 178,968
By the end of the first quarter of 2017, the total cumulative units, which is an increase of 1.6% compared to the previ-
supply of strata-title apartments in Jakarta grew at a moder- ous quarter and 9.9% YoY. Furthermore, regarding loca-
ate pace. The Jakarta apartment market saw 2,790 new units tion, West Jakarta dominates the total existing supply by
from the handover of three newly completed projects: The 22.15%, followed by North Jakarta and South Jakarta, at
Green Pramuka (Nerine Tower), Elpis Residence and Para- 21.18 and 18.9%, respectively.
dise Mansion, which are middle to lower market segmented
Completed Apartment Projects During Q1 2017

Name of development location region developer units
The Green Pramuka (Tower Nerine) Jl. Jenderal Ahmad Yani Central Jakarta PT Duta Paramindo 1,000
Elpis Residence Gunung Sahari Central Jakarta SIOENG Group 790
Paradise Mansion Jl. Paradise Boulevard Selatan West Jakarta Palm Group 1,000
2,900
Kicking-off this year, there are 5,616 units from five new Penthouse is in Kemang, an area that is renowned for its
projects scattered in Central, South and East Jakarta. Two expatriate communities. Amongst the districts in South Ja-
projects in Central Jakarta are targeting different market karta, TB Simatupang remains to be the spotlight, due to
segments. The middle to lower segmented project, Magno- its growing number of office developments, which drive
lia Tower of Green Pramuka City, offers 1,000 units in stu- the growth for apartment developments in the surround-
dio to two-bedroom configurations, whilst The Pakubuwo- ing area. Meanwhile, East Jakarta will continue to receive
no Development will build another luxury apartment project massive units from middle to lower segmented projects,
in Jalan Sabang, Menteng, consisting of 340 units. On the namely Jakarta Living Star, developed by PT Sindeli Prop-
other hand, South Jakarta saw three new middle to upper ertindo Abadi, a subsidiary of Wuzhou Investment Group of
segmented projects during the reviewed quarter, namely China. Located in the Cibubur area (southern part of East
TBS Tower Apartment, Southgate Residence and Kemang Jakarta), Jakarta Living Star will consist of six apartment
Penthouse. TBS Tower Apartment and South Gate Resi- towers, featuring a hotel and mall that will be built in stages,
dence are located on Jalan TB Simatupang, whilst Kemang
List of Newly Introduced/Launched Projects in Q1 2017

Expected
estimated price
Name of development LOCATION region completion total Units
(in idr/sq m)*
time
The Green Pramuka Jl. Jenderal Ahmad Yani Central Jakarta 2018 17,000,000 1,000
(Tower Magnolia)
The Pakubuwono Menteng Menteng Central Jakarta 2021 56,500,000 340
TBS Tower Apartment Jl. TB. Simatupang South Jakarta 2019 32,000,000 162
Southgate Residence Jl. Tanjung Barat Raya South Jakarta 2020 26,500,000 300
No. 163, Jagakarsa
Kemang Penthouse Jl. Pangeran Antasari No.5 South Jakarta 2020 40,000,000 114
Jakarta Living Star (6 towers) Jl. Raya Lapangan East Jakarta 2021 11,000,000 3,700
Tembak, Cibubur
*) Price excludes VAT 10%

Overall, quite a few developers began the first quarter of induce new players (developers) to develop new assets
the year with optimism, as reflected by more projects being (lands) either with JV or in collaboration with local or over-
introduced/launched compared to the previous year. The seas developers. Moreover, Asian investors, particularly
fact that Jakarta is the most populated province with limited Chinese groups of companies, have already begun to fo-
vacant lands provides an opportunity for developers and in- cus more heavily on the development side of Jakartas resi-
vestors to offer new high-rise residential projects. This will dential market.
Foreign Asian Developers with Apartment Projects in Jakarta Over the Last Three Years
Name of Date of
Location Region Foreign Developer Origin ASP in IDR /unit
Project Launching
Citra Lake Suites Kalideres West Jakarta 2014 Mitsui Fudosan Japan 1.3 - 2.3 billion
Branz Simatupang TB Simatupang South Jakarta 2015 Tokyu Land Japan 3 - 9 billion
West Vista Duri, Kosambi West Jakarta 2015 Keppel Land Singapore 800 million - 1.7 billion
Daan Mogot City Daan Mogot West Jakarta 2016 China Communications China 400 - 800 million
Construction Group
Tomang Park Tomang West Jakarta 2016 Phoenix Property Hong Kong 600 million - 2 billion
Jakarta Living Star Cibubur East Jakarta 2017 Wuzhou Investment China 250 - 550 million
Group
For the first quarter of 2017, a total of 59,017 apartment units accessibility to the area and proximity to Soekarno-Hatta
were under construction, of which 21,167 units are expect- International Airport. Above all, developers continue to opt
ed to reach completion in 2017 and followed by 28,303 and to build apartment projects in South Jakarta due to its well-
9,547 units in 2018 and 2019, respectively. West Jakarta will supported facilities and established neighbourhoods, as
dominate future supply mainly benefiting from the intercon- well as the Mass Rapid Transit (MRT) project that is now
nection of Jakartas Outer Ring Road, which has increased underway, adding to the attractiveness for investors.
The Distribution of Existing and Under-Construction Apartment Projects in Jakarta

existing Projects under-construction projects
CBD
CBD 6%
West
14% Central
Jakarta
22% Jakarta
13%
West
Jakarta
Central 32%
Jakarta
15%
East
Jakarta
9%
South
East Jakarta
South Jakarta 25%
North 10%
Jakarta Jakarta
21% 19% North
Jakarta
14%

New Pipeline
Apartment name location region developer #units Status
2017
Sudirman Suites Jl. Sudirman CBD Pikko Group 380 Under-construction

Casa Domaine Jl. Jend. Sudirman Kav 1 CBD Lyman Group 186 Under-construction
T - Plaza Residence (Tower A) Jl. Penjernihan I Kav.1 Central Jakarta PT. Prima Kencana 307 Under-construction
Pejompongan
Elpis Residence Gunung Sahari Central Jakarta Sioeng Group 790 On Operation
Menteng Park Jl. Cikini Raya No.79 Central Jakarta Agung Sedayu Group 756 Under-construction
The H Residence Kemayoran Jl. Rajawali Selatan Central Jakarta Hutama Karya Re- 800 Under-construction
(Amethyst) altindo
The Green Pramuka (Tower Nerine) Jl. Jenderal Ahmad Yani Central Jakarta PT Duta Paramindo 1,000 On Operation
Green Signature Apartment Jl. MT. Haryono East Jakarta KSO Fortuna Indonesia 800 Under-construction
(Pikko)
Bassura City (Tower Jasmine) 2 Jl. Basuki Rahmat East Jakarta Synthesis Development 2,000 Under-construction
tower
Bassura City (Tower Heliconia) Jl. Basuki Rahmat East Jakarta Synthesis Development 700 Under-construction
Regatta London Tower Jl. Pantai Mutiara North Jakarta Intiland 186 Under-construction
Pluit Seaview (Tower Belize) Pluit North Jakarta Binakarya Propertindo 300 Under-construction
Group
LA City Apartment (Tower A) Jl. Raya Lenteng Agung, South Jakarta Pancanaka Samaktha 980 Under-construction
Jagakarsa
Nine Residence Warung Buncit South Jakarta Lippo Karawaci 246 Under-construction
Senopati Suites 3 Jl. Senopati South Jakarta Mahkota Asia Graha 54 Under-construction
District 8 (Tower Eternity) Jl. Senopati South Jakarta Agung Sedayu 400 Under-construction
District 8 (Tower Infinity) Jl. Senopati South Jakarta Agung Sedayu 280 Under-construction
Izzara Apartment (South and North TB. Simatupang South Jakarta Grage Group 542 Under-construction
Tower)
Lexington Rersidence Pondok Pinang South Jakarta Cowell Development 275 Under-construction
The Aspen Peak at Admiralty (Tower Jl. Fatmawati South Jakarta PT. Harmas Jalasveva 322 Under-construction
C)
Kebayoran Icon Jl. Ciledug Raya South Jakarta Tamara Land 256 Under-construction
One Casablanca Residence Jl. Pal Batu South Jakarta Forza Land 215 Under-construction
La Terrasse Jl. Deplu Raya No.12 South Jakarta Cowell Development 111 Under-construction
The Langham Residences Senopati South Jakarta Agung Sedayu Group 57 Under-construction
The Hamilton Jl. KHM Syafi'I Hadzami South Jakarta Intiland 112 Under-construction
St. Moritz (New Presidential Tower) Jl. Puri Indah West Jakarta Lippo Karawaci 59 Under-construction
Puri Mansion Apartment (Tower Jl. Lingkar Luar Barat, Puri West Jakarta Agung Sedayu Group 900 Under-construction
Amethyst) Kembangan
Puri Orchad (3 Tower) Jl Raya Adicipta West Jakarta PT Adicipta Graha Ken- 3,000 Under-construction
cana (Serenity Group)
Maqna Residence Jl. Meruya Ilir No. 88 West Jakarta PT. Graha Meruya 312 Under-construction
Veranda Jl. Pesanggrahan Raya, Kem- West Jakarta PT. Mutirara Puri Indah 174 Under-construction
bangan
Wang Residence Jl. Panjang No 18 West Jakarta PT. Citicon Propertindo 250 Under-construction
St Moritz (The New Ambassador Jl. Puri Indah Kembangan West Jakarta Lippo Karawaci 200 Under-construction
Suite Tower)
Taman Anggrek Residence Tanjung Duren West Jakarta Agung Sedayu 3,000 Under-construction
(6 towers)
Pancoran China Town (Lucky Tower) Jl. Pancoran No.42 A, Glodok West Jakarta PT. Supra Megah 117 Under-construction
Utama
Paradise Mansion (2 tower) Jl. Paradise Boulevard Selatan West Jakarta Palm Group 1,000 On Operation
continued

continuation
2018
Gayanti City (2 Towers) Jl. Gatot Subroto CBD PT Buana Pasifik Inter- 318 Under-construction
national
Verde Two Jl. Rasuna Said CBD Farpoint Realty 152 Under-construction
Anandamaya Residences (3 towers) Jl. Jend Sudirman CBD Hongkong Land 500 Under-construction
Lavie Jl. Denpasar Raya CBD Wilsor Group 302 Under-construction
South Hill Jl. Denpasar Raya CBD Tan Kian 611 Under-construction
Le' Parc Jl. Thamrin CBD PT. Putragaya Wahana 100 Under-construction
Regent Residences (tower 1) Semanggi CBD PT. Kencana Graha 100 Under-construction
Global
The Hundred Residence Mega Kuningan CBD PT. Farpoint Realty 100 Under-construction
Indoneasia
The Elements Epicentrum Rasuna Said CBD Sinar Mas Land 372 Under-construction
(2 Towers)
Sudirman Hill Residence Jl. Karet Pasar Baru Barat Central Jakarta PT. Muliaguna Proper- 299 Under-construction
tindo Development
Capitol Suites Jl. Prapatan Raya Central Jakarta The Capitol Group 327 Under-construction
Royal Suites Kemayoran Central Jakarta Springhill Golf Group 450 Under-construction
Holland Village (Phase II) Cempaka Putih Central Jakarta Lippo Karawaci 230 Under-construction
Signature Park Grande Jl. MT. Haryono East Jakarta KSO Fortuna Indonesia 1,100 Under-construction
(Pikko)
The Sahid Asena Apartment and Ciracas East Jakarta Sahid Group 476 Under-construction
Garden (was Sahid Garden Resi-
dence)
Pluit Seaview (Tower Ibiza) Pluit North Jakarta Binakarya Propertindo 500 Under-construction
Group
Gold Coast Apartment Pantai Indah Kapuk North Jakarta Agung Sedayu 568 Under-construction
(Atlantic Tower)
Regatta Apartment (Tower New Pantai Mutiara North Jakarta Intiland 186 Under-construction
York)
Sedayu City (Tower Melbourne) Jl. Pegangsaan Dua Raya North Jakarta Agung Sedayu 912 Under-construction
Sedayu City (Tower Darwin) Jl. Pegangsaan Dua Raya North Jakarta Agung Sedayu 936 Under-construction
The Kensington Royal Suites (4 Kelapa Gading North Jakarta Summarecon 790 Under-construction
Tower)
(Bahama Tower)
(Carribean Tower)
(Honolulu Tower)
Grand Marina Ancol Ancol North Jakarta PT. Bangun Setia Cipta 672 Under-planning
(Jaya Ancol)
Pakubuwono Terrace Grand Tower Kebayoran Lama South Jakarta PT. Selaras Mitra Sejati 435 Under-construction
Bellevue Place MT Haryono, Tebet South Jakarta Gapura Prima 240 Under-construction
The Foresque Pasar Minggu, Ragunan South Jakarta PT Griya Karunia 660 Under-construction
Sejahtera (Binakarya
Propertindo Group)
Antasari Heights Jl. Pangeran Antasari No.8 South Jakarta PT Radinka Quatro 360 Under-construction
Land
The Aspen Peak at Admiralty Jl. Fatmawati South Jakarta PT. Harmas Jalasveva 322 Under-construction
(Tower D)
Casa Grande Residence 2 (Tower Jl. Casablanca South Jakarta Pakuwon Group 350 Under-construction
Angelo)
continued

continuation
Bella)
Chianti)
Pondok Indah Residences (3 Tow- Pondok Indah South Jakarta Metro Pondok Indah 880 Under-construction
ers)
Selatan 8 (Tower Prabu) Jl. Raya Ulujami South Jakarta Karya Cipta Group 344 Under-construction
45 Antasari (2 Tower) Antasari South Jakarta Cowell Development 1,924 Under-construction
Arzuria Apartment Jl. Tendean South Jakarta Tolaram Group 210 Under-construction
Pakubuwono Spring (2 towers) Jl. Teuku Nyak Arief No.9 South Jakarta PT. Simprug Mahkota 545 Under-construction
Indah (Agung Podo-
moro Group)
Branz Simatupang (2 tower) TB. Simatupang South Jakarta Tokyuland 381 Under-construction
Synthesis Residence Kemang (3 Jl. Ampera Raya No.17 South Jakarta PT. Synthesis Develop- 1,100 Under-construction
towers) ment
Gianetti Apartment Jl. Kebon Jeruk Raya, Ke- West Jakarta Bangun Investa Graha 500 Under-construction
manggisan
Gallery West Jl. Panjang No 5 West Jakarta AKR 280 Under-construction
Vittoria Residence (3 tower) Jl. Daan Mogot West Jakarta PT. Duta Indah Ken- 1,100 Under-construction
cana
Ciputra International Puri Indah Jl. Lingkar Luar Barat West Jakarta Ciputra 412 Under-construction
(Tower Amsterdam)
Grand Madison Park Tanjung Duren West Jakarta Agung Podomoro 300 Under-construction
Group
Citra Lake Suites (Tower Rosewood) Jl. Raya Kresek West Jakarta Ciputra Group 104 Under-construction
Citra Lake Suites (Tower Green- Jl. Raya Kresek West Jakarta Ciputra Group 126 Under-construction
wood)
Citra Lake Suites (Tower Oakwood) Jl. Raya Kresek West Jakarta Ciputra Group 117 Under-construction
Citra Lake Suites (Tower Sherwood) Jl. Raya Kresek West Jakarta Ciputra Group 122 Under-construction
Aerium Taman Permata Buana (2 Taman Permata Buana West Jakarta Sinar Mas Land and 491 Under-construction
towers) Itochu
Ciputra International Puri Indah Jl. Lingkar Luar Barat West Jakarta Ciputra 335 Under-construction
(Tower Barcelona)
Puri Mansion Apartment (Tower Jl. Lingkar Luar Barat, Puri West Jakarta Agung Sedayu Group 700 Under-construction
Crystal) Kembangan
West Vista (2 towers) Jl. Lingkar Luar Barat No.8, West Jakarta PT. Harapan Global 2,840 Under-construction
Duri Kosambi Niaga
Citra Living Apartment (Somerset Jl. Citra 7, Kalideres West Jakarta Citra Mitra Graha KSO 312 Under-construction
Tower)
Citra Living Apartment (Orchad Jl. Citra 7, Kalideres West Jakarta Citra Mitra Graha KSO 312 Under-construction
Tower)
2019
The Suites (W Hotel Tower) Jl. Prof. Dr. Satrio CBD Ciputra 200 Under-planning
The Residences at The St. Regis Jl. H.R Rasuna Said CBD Rajawali Property 164 Under-construction
Jakarta Group
Arandra Residence Jl. Cempaka Putih Raya Central Jakarta Gamaland 687 Under-construction
No.1
Menara Jakarta (Tower Equinox) Kemayoran Central Jakarta Agung Sedayu 396 Under-construction
Menara Jakarta (Tower Azure) Kemayoran Central Jakarta Agung Sedayu 860 Under-construction
The Linq Kemayoran (2 towers) Kemayoran Central Jakarta KG Global 1,020 Under-construction
Menteng 37 Jl. Menteng 37 Central Jakarta Pikko Group & Wijaya 99 Under-planning
Wisesa (JV)
continued

continuation
Sentra Timur Residence (Tower Safir) Pulo Gebang East Jakarta Bakrieland 605 Under-construc-
Development tion
Pluit Seaview (Tower Bahama) Pluit North Jakarta Binakarya Proper- 650 Under-construc-
tindo Group tion
Jaya Ancol Seafront - Oceana Tower Pademangan, Ancol North Jakarta Jaya Ancol 524 Under-construc-
tion
Orient Residence Jl. Yos Sudarso, No 76 North Jakarta PT Tri Raton Mega 225 Under-construc-
tion
La Foret Vivante Jl. Limo, Permata Hijau South Jakarta PT. Mahkota Pro- 253 Under-construc-
perti Indo Permata tion
Fatmawati City Center - Corona Park Fatmawati South Jakarta Agung Sedayu 620 Under-planning
Suite Tower
Ratu Prabu 3 Residences TB. Simatupang South Jakarta PT Ratu Prabu Tiga 61 Under-construc-
tion
Samara Suites Jl. Gatot Subroto South Jakarta Synthesis Develop- 300 Under-planning
ment
Lavish Kemang Residence Jl. Kemang Raya No.3, South Jakarta PT Kemang Karya 474 Under-planning
Bangka Utama
Permata Hijau Suites Jl. Raya Kebayoran Lama South Jakarta PT Palmerindo 649 Under-planning
Properti
19 Avenue Apartment (Tower B) Daan Mogot West Jakarta Margahayu Land 416 Under-construc-
tion
Green Sedayu Apartment (Tower Jl. Kamal Raya, Cengkareng West Jakarta Agung Sedayu 644 Under-construc-
Pasadena) tion
Daan Mogot City (3 towers) Daan Mogot West Jakarta PT China Harbour 700 Under-planning
Jakarta Real Estate
Development
Demand Take Up Rate of Existing and Under-

Construction Apartment in Jakarta
Up until March 2017, despite the optimism of the year 100%
ahead, sales activities in the Jakarta apartment market
90%
have not shown any discernible trend, and the prevailing
overall theme is gradual recovery. Evidenced by the cur- 80%
rent take-up rate, existing strata-title apartments reached 70%
96.1%, up slightly by 0.1% whilst the pre-sales activities of 60%
construction projects currently undergoing construction re-
50%
corded 66.8%, which fell by 1.3% compared to the previous
quarter. Overall, the average take-up rate for both existing 40%
apartments and those still under construction experienced 30%
a modest decrease of 0.9% from the previous quarter. All 20%
in all, the overall sales performance over the quarters was
10%
relatively flat.
0%
A major reason why we expect a gradual recovery rather
Q1 2015
Q2 2015
3Q 2015
4Q 2015
Q1 2016
Q2 2016
Q3 2016
Q4 2016
Q1 2017
than a speedy one is the substantial future pipeline supply

in Jakarta, especially in the non-prime area. In addition,
there will be fewer stimuli coming from the government this Existing Project Under Construction Projects
year, as they focus on optimising the implementation of pre-
vious stimulus policies. However, on the back of optimism Source: Colliers International Indonesia - Research
towards better consumer purchasing power, especially for

the middle-upper class, there is indeed a growing appetite
to purchase apartments as a form of investment. On the
other hand, we also believe that demand would again be
conducive only if the low-single digit mortgage rate can be
maintained.

Take-up Rate Changes in Different Locations in Property Companies Market Sales (in billion)
Jakarta 2016 2017
Developer % change
Q1 2016 Q4 2016 Q1 2017 QoQ YoY realization target
CBD 94.0% 90.8% 91.5% 0.7% -2.5 Bumi Serpong Damai IDR6,300 IDR7,220 15%
South Jakarta 85.3% 85.8% 86.1% 0.3% 0.8 Pakuwon Jati IDR2,300 IDR2,700 17%
Non-Prime area 85.4% 86.6% 85.0% -1.6% -0.4 Summarecon IDR3,000 IDR4,500 50%

Intiland IDR1,630 IDR2,300 41%
Ciputra IDR7,200 IDR8,500 18%
In the regional scale, the CBD and South Jakarta areas Source: Company Publication, Newspaper (Kontan, Bisnis Indonesia)
experienced a somewhat positive performance, whilst non-
prime areas recorded their first decline, after experiencing
an upward trend for the last four consecutive quarters. Due Asking Price
to a limited amount of newly launched apartment projects
in the CBD, the market continues to absorb unsold units The average asking price for strata-title apartments con-
from existing projects under construction, whilst a modest tinues to demonstrate an upward trend. As of Q1 2017,
increase in take-up rate in South Jakarta was more due to the average asking price of apartments in Jakarta rose
the good take-up rate in newly launched projects. Mean- by 1.4% to IDR32.1 million/sq m, slightly better than the
while, the drop in the take-up rate in non-prime areas is previous quarter at 1.3%. Albeit low, the CBD area posted
due to massive additional supplies, which we think could the highest increment by less than 2% QoQ compared to
have led to the first concern on an oversupply fear when non-prime areas and South Jakarta, particularly due to a
the sales volume could not catch up with the number of limited number of projects being launched and limited stock
new projects every quarter. available in the market. Benefiting from a lower price com-
pared to South Jakarta and the CBD area, some projects in
During the reviewed quarter, there was an issue that the non-prime areas are enjoying a good take-up rate, helping
government would propose a progressive tax to be im- the average price to improve. Meanwhile, with a number
posed on idle lands, to make sure these lands are more of new developments and significant new launches in the
productive. The proposed policy was expected to prevent market, the competition amongst developers has also be-
people from using land for speculative business, and en- come more intense, thus led to a downward pressure on
courage landowners to productively use their lands. Such price growth in South Jakarta.
regulation is planned to also contribute additional revenues
to the state, as well as improve economic productivity and
reduce social gaps. Nevertheless, such policy may spark Average Asking Price (in IDR/sq m) in Three Different
other problems if not well prepared and impact the property Areas
sector negatively, as it will precipitate additional costs of Q1 2016 Q4 2016 Q1 2017 QoQ YoY
idle lands, particularly to those controlling sizeable land- CBD 47,816,125 48,823,182 49,617,622 1.6% 3.8%
banks. Recently, the government said that the policy would South Jakarta 36,028,156 36,985,992 37,239,230 0.7% 3.4%
not be implemented in the near future, as relevant officials Non-prime Area 23,147,612 23,893,962 24,236,441 1.4% 4.7%
are still studying the matter. Yet, they also denied any in-
Average 30,840,637 31,653,103 32,084,792 1.4% 4.0%
tentions to totally cancelling the plan.
Moreover, along with government efforts to deliver various

infrastructure projects and integrated transportation net- Overall, we believe developers would continue their strat-
works in the city, growing urban development will positively egy to set the price at the current level in order to maintain
impact the property sector. In fact, developers confidently its sales. Considering the current market condition when
set a higher marketing sales target for 2017, with a 15% to potential buyers are more cautious in buying apartments,
as high as 50% YoY growth from 2016. developers have to provide more incentives and interest-
ing marketing gimmicks, as well as be more competitive
in setting up the price. As a result, we expect moderation
in apartment prices in the near term rather than the longer
term, given the governments supportive stance will take
effect starting in the second half of 2017.

APARTMENT FOR LEASE Also, there were no newly launched projects, either for
serviced or non-serviced apartment, in Jakarta during the
reviewed period. Meanwhile, Somerset Kencana Jakarta
Supply will soon be ready for operation in the second quarter of
2017, after having been delayed for two years due to inter-
There were no new serviced or non-serviced apartments nal problems. As such, until 2019, the apartment-for-lease
completed during the reviewed quarter. Thus, by the end of market expects to receive a total of more than 628 units
March 2016, the cumulative supply of apartments for lease from five projects in the next two years. As the popular
stood at 8,860 units, consisting of 60% serviced apart- locations, the CBD and South Jakarta continue to house
ments and 40% non-serviced apartments. Location-wise, most of the upcoming serviced apartments.
the CBD area and South Jakarta remain as the preferred
locations for serviced apartments. For several years, these
two areas have been the main locations of many expatriate Detail Unit Available at Somerset Kencana Jakarta
communities due to their proximity to the business district Type Size (sq m) #Unit
and international schools. The CBD still houses most rental 1BR Deluxe 64 - 66 56
apartments followed by South Jakarta due to its well-sup-
1BR Executive 67 - 70 28
ported infrastructure and for the fact that it is itself, a busi-
ness centre. 2BR Executive 96 56
3BR Premier 129 - 133 8
Source: www.somerset.com
Serviced Apartment Projects Pipeline

Year of
Name of Project Location Area Operator #Unit
Operation
Somerset Kencana Jakarta Jl. Prof Dr Satrio South Jakarta 2017 Somerset 148
Fraser Suites at Ciputra World Jakarta 2 Jl. Prof Dr Satrio CBD 2017 Frasers Hospitality 150
Oakwood at District 8 Senopati Jl. Senopati South Jakarta 2017 Oakwood 180
Ascott Menteng Jakarta Menteng Central Jakarta 2019 Ascott 150
Fraser Suites Kebon Melati Kebon Melati, Tanah Abang Central Jakarta 2019 Frasers Hospitality TBA
Occupancy Occupancy of Serviced Apartment

In general, apartments for lease in Jakarta experienced Q4 2016 Q1 2017 QoQ
an occupancy increase of 0.1% compared to the previous CBD 72.9% 74.1% 1.2%
quarter of 71.8%. Although some apartments have enjoyed South Jakarta 70.0% 65.0% -4.9%
a slight improvement in occupancy rate, some apartments Non-Prime area 50.9% 52.0% 1.1%
faced a weak demand and increasing vacancy rate in the
reviewed quarter. King Salmans presence in Jakarta has
resulted to a spill-over of dwelling demand to the surround-
ing serviced apartments in Mega Kuningan and the CBD Occupancy of Apartment for Leased
area, albeit in a short term.
Q4 2016 Q1 2017 QoQ
Things are looking less robust in the non-serviced apart- CBD 76.6% 77.3% 0.7%
ment market, where weaker demand is causing rising va- South Jakarta 69.2% 68.3% -0.8%
cancy and softening rents. Even in one established non-
Non-Prime area 68.9% 69.2% 0.3%
serviced apartment located in South Jakarta, the lack of
the so-called blue chip demand was felt. Moreover, the
demographics of expatriates are changing. There now
more Asians, both singles and couples without kids, than
Occupancy
westerners with their families, and this means rental bud-
get has been reduced. Q4 2016 Q1 2017 QoQ
Leased 74.5% 74.6% 0.1%
Serviced 66.7% 66.9% 0.2%

In addition, with more accommodation types on offer, in- availability arises. In the meantime, both serviced and non-
cluding condotels (condominium hotels) and boutique serviced apartments perform based on opportunity costs
residences (typically low-rise apartments), consumers rather than benchmarking the new sign-on rent against the
will have more choices when it comes to selecting a resi- previous contract rate. Moreover, by opportunity costs, the
dence and will be more likely to find something that fits typical lease that could be earned if the unit is rented out
their needs, or will be able to customise and find avail- at realistic rates should be chosen, rather than leaving it
able service offerings to do so. As a result, there will be vacant for an uncertain period of time, due to unrealisti-
increased competition, which will be felt most by older and cally high rents.
less-managed projects. These projects will need to adapt
and upgrade or face losing their slice of the market.
Rental Rate (IDR/Sq m/Month)
Moreover, regarding market demand, both serviced and Serviced Non-Serviced
non-serviced apartments have traditionally relied on the Apartment QoQ
change
Apartment QoQ
change
oil and gas and mining sectors for support. Yet, demand Q4 2016 Q1 2017 Q4 2016 Q1 2017
today comes from embassies and a much broader base of CBD 441,757 434,988 -1.5% 230,453 226,855 -1.6%
smaller companies involved in a wide range of businesses. South Jakarta 376,132 361,105 -4% 167,348 166,761 -0.4%
(incl. Non-Prime)
Rental Rate
Considering recent market conditions, landlords were Average Rental Rate (IDR/sq m/month)
more realistic, as they deployed flexible rental strate- Q4 2016 Q1 2017 QoQ change
gies in the reviewed quarter. Most rental apartments CBD 371,321.93 365,610.41 -1.5
still maintain their previous rents to attract new tenants,
South Jakarta (incl. 218,790.51 218,625.18 -0.1
whilst some apartments lowered the rents. As a result, Non-Prime)
average rental rates of apartments for lease experienced
their first negative QoQ growth in the early part of the
year, and was down by 1.5% and 0.1% in the CBD and
South Jakarta (including non-prime areas), respectively.
Concluding Thought
As mentioned above, in the area of market segment,
the average rental rates for serviced apartments in On the macroeconomic perspective, the economy is im-
the CBD declined by 1.5% QoQ to IDR434,988/sq m/ proving albeit at a gradual pace, with larger government
month, whilst serviced apartments in South Jakarta (in- infrastructure spending and some recovery on the domes-
cluding non-prime areas) declined by 4.0% QoQ to tic consumption expected to permeate into the economy to
IDR361,105/sq m/month. For non-serviced apartments, support its 5.2% growth target this year. Moreover, higher
the average rental rate in the CBD area declined by direct investments, both local and overseas, should be
1.6% QoQ to IDR226,855/sq m/month, whilst non-ser- triggered by the implementation of the governments pol-
viced apartments in South Jakarta (including non-prime icy packages. A relatively modest political tension, stable
areas) adjusted by 0.4%, to IDR166,761/sq m/month. rupiah, low interest rate, increasing real wage and declin-
ing unemployment rate should pave the way to support
Furthermore, given a generally weaker demand in both Indonesias GDP in 2017. Thus, we expect more visible
serviced and non-serviced apartments, we expect rents to improvements on the demand side of apartments in the
come under more pressure in the upcoming quarters as second half of 2017.

Retail Sector Supply
Ferry Salanto Senior Associate Director | Research Jakarta

In Jakarta, occupancy remained stable at 86%, whilst Annual Retail Space Supply in Jakarta
average rents increased 4.4% QoQ to IDR587,904/sq
250,000
m/month. The high demand for premium retail spaces
(particularly at the ground floor) caused mall owners to
confidently increase their offering rents. Despite mar- 200,000
ginally, average rents also grew in Greater Jakarta to
IDR353,790/sq m/month.
sq m 150,000
Forecast at a glance 100,000
Supply
50,000
New Glodok Plaza and Aeon Jakarta Garden
City will begin operation in 2017 and contribute
new additional retail spaces. Outside the CBD, 0
more future shopping centres will be completed,
2017F
2018F
2019F
2010
2011
2012
2013
2014
2015
2016
2017YTD
bringing around 185,000 sq m of projected ad-
ditional retail spaces in 2018.
Demand For Lease Strata-title
Malls that are expected to open in 2018 have Source: Colliers International Indonesia - Research
secured some committed tenants coming from
home furnishing, cinema, fashion, and food and
beverages. In Jakarta, three shopping centres are expected to bring
139,000 sq m of new supplies in 2017. Nevertheless, none
Occupancy of them began operation in Q1 2017 and caused the cur-
Occupancy for shopping centres for lease (mall) rent cumulative supply to still register at 4.57 million sq m.
is forecasted to be relatively flat, although two Should these three shopping centres be completed, the
malls will soon be completed and bring large cumulative supply will increase by 3% YoY. As recorded,
spaces in 2017. On the back of sound GDP the 2017 growth of cumulative supply is the same as the
growth and low inflation, the retail market is ex- previous year, which was contributed by four shopping
pected to perform better with higher occupancy, centres in 2016.
particularly because the amount of future supply
will be much more controlled. The number of future retail centres will be very limited in
Jakarta. Apart from the future supply in 2017, the city will
Rent see another seven future shopping centres until 2019.
The cost of occupancy has gradually moved in DEntrance retail centre, a newly launched project in Ja-
an upward trend, much underpinned by a mod- karta, will bring more lifestyle and al fresco dining experi-
erate amount of new retail spaces. A regulated ences. This retail centre will stand on the former location
number of future retail spaces will provide rooms of Arkadia Office Tower A at TB Simatupang (South Ja-
for landlords to continue adjusting their rental karta), which was demolished in 2016. Including this proj-
rates going forward. ect, South Jakarta will contribute five of 10 future shopping
centres in 2017-2019.
Based on area, 18.4% of the current total supply was lo- Greater Jakarta (BoDeTaBek)
cated in the CBD. Nevertheless, the CBD does not expect
to have additional supply in 2017 and 2018, and so the pro- Annual Retail Supply in Greater Jakarta
jected cumulative supply will remain the same at 839,985
sq m by the end of 2018. Meanwhile, cumulative supply 350,000
outside the CBD was recorded at 3.73 million sq m as of
300,000
Q1 2017, with an expected 310,000 sq m additional supply,
approximately, up to 2019. Four of eight future shopping 250,000
centres have been under construction, representing 50%
of the total projected additional retail spaces outside the 200,000
CBD, up to the end of 2019.
sq m
150,000
Cumulative Supply of Retail Spaces in Jakarta 100,000
5,000,000 50,000
4,500,000
0
4,000,000
2017F
2018F
2019F
2010
2011
2012
2013
2014
2015
2016
2017YTD
3,500,000
3,000,000
2,500,000
sq m
For Lease Strata-title

2,000,000
1,500,000
1,000,000
A shopping centre recently began operation in East Bekasi,
500,000 located within a mixed-use project called BTC City. This
0 new shopping centre is owned by Gapura Prima, which de-
veloped Bekasi Trade Centre, an existing shopping centre
2010
2011
2012
2013
2014
2015
2016
2017F
2018F
2019F
2017YTD
within the same compound. These additional retail spaces

raised the cumulative supply to 2.52 million sq m as of Q1
2017.
Existing Supply Annual Supply
Based on construction progress, only BTC City Shopping
Mall in Greater Jakarta contributed additional retail spac-
Cumulative Supply Based on Area in Jakarta es in 2017. Seven future shopping centres are expected
to meet completion from 2018 to 2019 to bring around
260,000 sq m of additional supply in Greater Jakarta.
West
Jakarta Grand Dhika, Galleria Vivo Sentul and Aeon Mall Sentul
City will be completed first in 2018. Galleria Vivo Sentul
East (in Cibinong) is expected to provide a trade mall concept.
Jakarta
Meanwhile, based on leasable area, Aeon Mall Sentul City
North will be the one shopping centre that has a net leasable area
Jakarta larger than 70,000 sq m in Greater Jakarta. This shopping
centre has begun construction since early 2016.
South
Jakarta
In addition, Aeon Mall Sentul City will become the third
Central shopping centre project by Aeon in Indonesia, after Aeon
Jakarta Mall BSD in Tangerang, Greater Jakarta and Jakarta Gar-
den City in East Jakarta. For future shopping centres, be-
CBD
sides Jakarta Garden City and Sentul City, Aeon partnered
with Sinarmas Land as the local developer in building two
0 350,000 700,000 1,050,000 shopping centres in Greater Jakarta. As partners, these
sq m developers are currently preparing to start the construc-
Cumulative Supply 2017YTD Future Supply in 2017F - 2019F tion of a new shopping centre at Tanjung Barat (South Ja-
Source: Colliers International Indonesia - Research karta) and Deltamas (Bekasi). Apart from Aeon, Sinarmas
itself will also develop a shopping centre at Kota Wisata
(Bekasi).

Cumulative Supply of Retail Spaces in Greater shopping centres owned by Lippo will be developed in
Jakarta Tangerang, namely Embarcadero at Bintaro and Lippo
Grand Mall at Karawaci. Meanwhile, three future shopping
3,000,000 centres owned by APL will be constructed in Jakarta.
2,500,000
Cumulative Supply Based on Area in Greater
2,000,000 Jakarta
1,500,000
sq m
Bekasi
1,000,000
Tangerang
500,000
0
Depok
2010
2011
2012
2013
2014
2015
2016
2017F
2018F
2019F
2017YTD
Existing Supply Annual Supply Bogor

0 300,000 600,000 900,000 1,200,000
From the developers side, besides Sinarmas Land, Lippo sq m

Group and Agung Podomoro Land (APL) will become the Cumulative Supply 2017YTD Future Supply in 2017F - 2019F
most active developers of new shopping centres in Greater
Jakarta. Until 2020, both APL and Lippo Group will contrib- Source: Colliers International Indonesia - Research
ute three future shopping centres each. Two of three future
New Supply Pipeline

development
shopping centre location region developer NLA (sq m)
Status
jakarta
2017
Shopping Mall @ SOHO Pancoran South Jakarta Agung Podomoro Land 8,000 Under Construction
Pancoran
New Harco Plaza Glodok West Jakarta Wahana Sentra Sejati (Agung 60,000 Under Construction
Podomoro Land)
Aeon Mall Jakarta Garden City Cakung East Jakarta Metropolitan Land & Aeon 71,000 Under Construction
2019
D'Entrance TB Simatupang South Jakarta Loka Mampang 10,000 Under Construction

Shopping Mall at Podomoro Buaran East Jakarta Graha Cipta Kharisma (Agung 40,000 In Planning
Park Podomoro Land)
Grand Metro Cipulir Cipulir South Jakarta Priamanaya 30,000 In Planning
Pondok Indah Mall 3 Pondok Indah South Jakarta Metropolitan Kentjana 60,000 In Planning
Shopping Mall at South Gate Lenteng Agung South Jakarta Sinarmas Land & Aeon 35000 In Planning
Benhil Central Mall Bendungan Hilir CBD Wijaya Karya & PD Pasar Jaya 20,000 In Planning
Benhil Central Trade Centre Bendungan Hilir CBD Wijaya Karya & PD Pasar Jaya 20,000 In Planning
continued

development
shopping centre location region developer NLA (sq m)
Status
continuation
greater jakarta (bodetabek)
2018
Galleria Vivo Sentul Cibinong Bogor Megapolitan 35,000 Under Construction

Grand Dhika City Mall Bekasi Bekasi Adhi Persada Realty 24,000 Under Construction
Plaza Indonesia Jababeka Jababeka Bekasi Plaza Indonesia & Graha Buana 55,685 Under Construction
Cikarang
AEON Mall Sentul City Sentul Bogor Sentul City & Aeon 71,000 Under Construction
2019
Living World Jababeka Jababeka Bekasi Kawan Lama 18,000 In Planning

Shopping Mall at Pesona Juanda Depok Menara Depok Asri 30,000 In Planning
Square
Hollywood Central Cikarang Bekasi Graha Buana Cikarang 25,000 In Planning
2020
AEON Mall Deltamas Deltamas Bekasi Sinarmas Land & Aeon 90,000 In Planning
Lippo Grand Mall Karawaci Tangerang Lippo Karawaci 120,000 In Planning
Embarcadero Bintaro Tangerang Lippo Karawaci 30,000 In Planning
Kota Harapan Indah Bekasi Bekasi Hasana Damai Putera 51,000 In Planning
Shopping Mall at Green Lake Cimanggis Depok Cempaka Group 20,000 In Planning
Shopping Mall at Kota Wisata Kota Wisata Bekasi Sinarmas Land 45,000 In Planning
Absorption Occupancy Based on Mall Grade

100%
Jakarta 90%
Occupancy Rates 80%

70%
100%
60%
90%
50%
80%
40%
70%
30%
60%
20%
50%
10%
40%
0%
30%
2010
2011
2012
2013
2014
2015
2016
2017YTD
20%
10%
Upper Class Middle Class Middle Lower Class
0%
2010
2011
2012
2013
2014
2015
2016
2017YTD
CBD Outside the CBD Jakarta

Occupancy performance in Jakarta has been relatively sta- relatively stable QoQ. After decreasing due to the influx
ble. In 2015, Jakarta received around 120,000 sq m of ad- of newly operating shopping centres, occupancy rates in
ditional retail supply. However, occupancy hovered at 85%- North Jakarta, West Jakarta and Central Jakarta climbed
86% in 2016. Occupancy performance currently showed moderately as of Q1 2017, but not East Jakarta. Neverthe-
an upward trend again, despite slightly, and registered at less, together with North Jakarta, East Jakarta recorded
86.3% as of Q1 2017. With limited additional retail spaces the second-highest occupancy rates by area. East Jakarta
and improving economic growth, we forecast occupancy to is expected to see large additional retail spaces and will
reach 87%-88% by the end of 2017 in Jakarta. likely bring the projected occupancy to drop by the end of
2017.
In Jakarta, shopping centres in all classes helped improve
occupancy rates, whilst upper class shopping centres Occupancy Based on Area in Outside the CBD
maintained the highest occupancy rate. Due to the influx
of new shopping centres in 2016, occupancy dropped, but 100%
upper class shopping centres gradually climbed to 90.2%. 90%
We expect occupancy to be maintained at a high level part- 80%
ly due to the absence of additional retail spaces for upper 70%
class shopping centres in 2017. 60%
50%
Occupancy for middle class shopping centres improved 40%
QoQ, despite marginally, and was registered at 86.8% as 30%

20%
of Q1 2017. It continued to show a narrower gap than with
10%
upper class shopping centres. The future supply of middle
0%
class shopping centres will likely impact the projected oc-
2010
2011
2012
2013
2014
2015
2016
2017YTD
cupancy rates in 2017. Meanwhile, occupancy has been
recorded relatively flat at 77% for middle lower class shop-
ping centres since 2015 and will continue to flatten by the
end of 2017, due to the availability of large vacant spaces. Central Jakarta (excl. CBD) South Jakarta (excl. CBD)
North Jakarta East Jakarta
South Jakarta (the non-CBD area) led with the highest oc-
cupancy rates since 2016, exceeding East Jakarta. With- West Jakarta
out additional supply, occupancy in South Jakarta was Source: Colliers International Indonesia - Research
Committed Tenants at Existing Shopping Centres

Shopping Centre Area Tenant Name Product
Lotte Shopping Avenue Satrio, CBD Ace Hardware Home Furnishing
Lotte Shopping Avenue Satrio, CBD Toys Kingdom Kids Toys, Hobbies & Gift
Pacific Place Mall SCBD Tory Burch Fashion Boutique & Accessories
Mall Kelapa Gading V Kelapa Gading, North Jakarta Kintan Buffet Restaurant
Senayan City Senayan, CBD Kintan Buffet Restaurant
Senayan City Senayan, CBD The Watch Fashion and Accessories
Senayan City Senayan, CBD Zara Home Home Furnishing
Senayan City Senayan, CBD Furla Fashion
Mall Puri Indah Puri Indah, West Jakarta Metro Department Store
Cibubur Junction Cibubur, East Jakarta Cinemaxx Entertainment
Kalibata City Kalibata, South Jakarta Ace Hardware Home Furnishing

Greater Jakarta Consecutively, two large shopping centres began opera-
tion in the previous quarter and brought large additional re-
Occupancy Rates tail spaces in Greater Jakarta. After decreasing by the end
of 2016, occupancy was still restrained at 82.4% as of Q1
100%
2017. Hypermart, Informa, Ace Hardware, Fun World, Po-
90% jok Busana and some food and beverages retailers will of-
80% ficially occupy spaces at Bekasi Trade City Shopping Cen-
70%
tre. As projected additional supply will be very limited, we
forecast occupancy in Greater Jakarta to continue climbing
60%
in 2017.
50%
40% Except at Bekasi, occupancy increased QoQ at other ar-
eas. Limited additional retail spaces brought Depok to
30%
currently achieve the highest average occupancy rates in
20% Greater Jakarta.
10%
0%
2010
2011
2012
2013
2014
2015
2016
2017YTD
Bogor Depok Tangerang Bekasi All Area
Committed Tenant at Shopping Centres in 2016 - 2018

Year
Shopping Centre Area OPERATION
Tenant Name
JAKARTA
PIK Avenue Pantai Indah 2016 Uniqlo, The Food Hall, Flix Cinema, Ace Hardware, Golds Gym, Informa, H&M, Optik Melawai, Sports Station,
Kapuk, North Giordano, Levis Store, Timberland, Pizza Hut, Starbucks, Excelso, Kidz Station, Carls Junior, Payless
Jakarta
Neo SOHO Podo- Slipi, West 2016 Central Dept Store, Kid Station, Electronic Solution, Pedro, The Body Shop, Clarks, Staccato, Polo Ralph
moro City Jakarta Lauren, Samsonite, Wrangler, Wood, Cotton On, Mango, Nine West, Charles & Keith, Armani Jeans, Furla, Ta
Wan, Pizza Hut, Pepper Lunch, Muji, Pedro, Kidz Station, Electronic Solution, Cotton On
Bassura City Mall Cipinang, East 2016 XXI, Lion Superindo, Optik Melawai, Sports Station, The Body Shop, Starbucks, Imperial Kitchen, Wood
Jakarta
Green Pramuka City Pramuka, 2016 CGV, Lotte Mart, Ace Hardware, Funworld, Kidz Station, Wood, Ta Wan, Starbucks, Marugame Udon, Elec-
Mall Central Jakarta tronic Solution, Optik Melawai
Aeon Jakarta Garden Cakung, East 2017 Footgear, Ichiban Sushi, H&M, Clarks, Charles & Keith, Uniqlo, Guess, Wood, Wrangle, CGV Blitz
City Jakarta
greater jakarta (bodetabek)

Metropolitan Mall Cileungsi, Bogor 2016 Matahari, Starbucks, Cinema XXI, Jysk, Electronic City, Gramedia, Pojok Busana, Funworld, The Executive,
Cileungsi Giordano, Optik Melawai, Optik Seis, Steak 21, DCost, Pizza Hut, Solaria, Batik Keris
Q Big BSD BSD City, 2016 Starbucks, Toys Kingdom, Ace Hardware, Informa, Mitra 10, Rockstar Jeans, Lulu Department Store
Tangerang
BTC City Shopping Bulak Kapal, 2017 Hypermart, Informa, Fun World, Ace Hardware, Pojok Busana, Solaria, DCost
Mall Bekasi
Galleria Vivo Mall Cibinong 2018 Centro Department Store, Lulu, Cinema CGV Blitz, Fun World, Lotte Mart
Sentul

Average Rental Rates Average Asking Rents Based on Mall Grades
IDR900,000
Jakarta
IDR750,000
Average Asking Rents in Jakarta
IDR900,000 IDR600,000
IDR450,000
IDR750,000
IDR300,000
IDR600,000
IDR150,000
IDR450,000
IDR0
2010
2011
2012
2013
2014
2015
2016
2017YTD
IDR300,000
IDR150,000
Middle-Lower Class Middle Class Upper Class

IDR0
2010 2012 2014 2016
Based on area, asking rents in the CBD were recorded at
CBD Outside CBD Jakarta
IDR864,043/sq m/month, around 75% higher than average
Source: Colliers International Indonesia - Research rents outside the CBD, which was at IDR499,033/sq m/
month as of Q1 2017. The highest asking rents outside the
In Jakarta, some shopping centres helped increase ask- CBD were still found at shopping centres, such as Pondok
ing rents by 4% QoQ to IDR587,904/sq m/month as of Q1 Indah Mall, Gandaria City and Kota Kasablanka in South
2017. Continuing enquiries for retail space triggered most Jakarta. Meanwhile, high rents in West Jakarta were fu-
of these shopping centres to raise their asking rents, partic- elled by shopping centres located in Slipi and Puri. The av-
ularly for prime retail areas (ground floor). High occupancy erage rents for these shopping centres remained relatively
level has been the reason for landlords to confidently in- stable starting at IDR700,000 to IDR900,000/sq m/month.
troduce asking rents that are 10% higher YoY for new ten- Except South Jakarta and West Jakarta, asking rents of
ants on the ground floor area. Asking rents at regular floors shopping centres outside the CBD were from IDR300,000
grew slower, only increasing by 3.5% YoY. Meanwhile, to IDR600,000/sq m/month.
as recorded, landlords commonly adjusted asking rents
ahead, higher by 3% up to 5% than in previous contracts Average Asking Rents Based on Area
for a renewal lease period of three to five years.
700,000
The upper class retail space were quoted between 600,000
IDR700,000 and IDR2,000,000/sq m/month on the ground
floor area. Meanwhile, newly operating shopping centres 500,000
still offered launching rates that are lower than IDR700,000. 400,000
On regular/typical floors, landlords offered rents starting at
300,000
IDR300,000/sq m/month. This range currently brought the
asking rents to IDR857,816/sq m/month, which is a 7.4% 200,000
increase QoQ for upper class shopping centres. We fore-
100,000
cast asking rents to likely increase 10% YoY, as contributed
by steady occupancy performance with limited additional 0
retail spaces at upper class shopping centres by the end
2010
2011
2012
2013
2014
2015
2016
2017YTD
of 2017.
Middle and middle lower class shopping centres showed Central Jakarta (excl. CBD) South Jakarta (excl. CBD)
a calm growth YoY in asking rents. As of Q1 2017, asking
rents were recorded at IDR433,923/sq m/month for middle
class shopping centres, which is a 3.4% increase QoQ, West Jakarta
whilst middle lower was at IDR289,863/sq m/month. Middle Source: Colliers International Indonesia - Research
to middle lower class shopping centres currently offer rents
at IDR200,000 to IDR550,000/sq m/month.

Some shopping centres in Pluit and Kelapa Gading also
currently recorded high average rents at IDR500,000/sq
Service Charges
m/month. However, we recorded other shopping centres
in North Jakarta that still offer rents from IDR200,000 to
Jakarta
IDR300,000/sq m/month. East Jakarta and Central Jakarta Service Charges in Jakarta
still recorded the lowest average rental rates, contributed
mostly by shopping centres with average rents starting IDR180,000
from IDR200,000 to IDR400,000/sq m/month.

IDR150,000
Greater Jakarta IDR120,000
Average Asking Rents in Greater Jakarta IDR90,000

IDR400,000
IDR60,000
IDR350,000
IDR300,000 IDR30,000
IDR250,000
IDR0
IDR200,000
2010
2011
2012
2013
2014
2015
2016
2017YTD
IDR150,000
IDR100,000
CBD Outside the CBD Jakarta
IDR50,000
IDR0
2010
2011
2012
2013
2014
2015
2016
2017YTD
Service charge showed an upward trend in Jakarta, in-

creasing 4.3% QoQ to be registered at IDR131,708/sq m/
Bogor Depok Tangerang month as of Q1 2017. The CBD area maintained its av-
Bekasi All Areas
erage service charge, higher than other areas in Jakar-
ta. Most shopping centres offered service charges from
Source: Colliers International Indonesia - Research IDR100,000 to IDR270,000/sq m/month in the CBD. This
current range raised the average service charge by 5.9%
Except Depok, other areas in Greater Jakarta experienced QoQ to IDR162,041/sq m/month in the CBD.
a 2%-4% growth in asking rents QoQ. Conversely, Depok
recorded a significant growth QoQ, contributed by a well- Service Charges in Jakarta Based on Area in
performing shopping centre in Depok that raised the rental
the Outside CBD
rates particularly on the ground floor. However, the aver-
age asking rents of each shopping centre in Depok were 150,000
recorded lower than in other areas in Greater Jakarta,
which starts at IDR200,000 to IDR450,000/sq m/month. 120,000
This made Depok record the lowest average asking rents
in Greater Jakarta. 90,000
Tangerang and Bekasi achieved and maintained the high- 60,000

est average rents in Greater Jakarta. Supermal Karawaci,
Living World, Mall at Alam Sutera, Metropolitan Mall and 30,000
Summarecon Mall Bekasi offer the highest rents in Greater
Jakarta. 0
2010
2011
2012
2013
2014
2015
2016
2017YTD
Overall average asking rents only registered a 2.6% growth

QoQ, moderately increasing to IDR353,790/sq m/month in
Greater Jakarta as of Q1 2017.
Central Jakarta (excl. CBD) South Jakarta (excl. CBD)
West Jakarta

Despite being lower than the CBD, service charge jumped Greater Jakarta
14.2% QoQ to IDR121,946/sq m/month outside the CBD.
South Jakarta recorded the highest service charge, con- Service Charges in BoDeTaBek
tributed by shopping centres at Pondok Indah, Kasablan-
IDR120,000
ka and Gandaria. Shopping centres in these areas cur-
rently offered service charges between IDR150,000 and
IDR180,000/sq m/month, whilst the lowest was recorded IDR100,000
in East Jakarta. Nevertheless, we recorded two shopping
centres owned by Lippo in East Jakarta with a service IDR80,000
charge of more than IDR130,000/sq m/month as of Q1
2017. IDR60,000
Service Charges in Jakarta Based on Mall IDR40,000
Grades
IDR20,000
IDR160,000
IDR140,000 IDR0
2010
2011
2012
2013
2014
2015
2016
2017YTD
IDR120,000
IDR100,000
Bogor Depok Tangerang Bekasi Overall
IDR80,000
IDR60,000
IDR40,000 Service charge showed an upward trend at each area in

IDR20,000
Greater Jakarta. As of Q1 2017, average service charge
increased 9.7% QoQ to IDR100,494/sq m/month.
IDR0
Most shopping centres in Greater Jakarta still recorded
2010
2011
2012
2013
2014
2015
2016
2017YTD
service charges below IDR100,000, relatively lowering the

average service charge. Only a few well-known shopping
Middle-Lower Class Middle Class Upper Class
centres in Greater Jakarta offered service charges above
IDR120,000/sq m/month, one of which is Aeon Mall BSD
that began operation in 2015.
Upper class shopping centres currently offered service

charges starting from IDR120,000 to IDR270,000/sq m/
month. Some upper class shopping centres increased 6%
Concluding Thought
up to 15% QoQ to bring the average service charge at The retail sector is expected to improve in terms of occu-
IDR158,574/sq m/month as of Q1 2017. Middle class shop- pancy and asking rents. The growth in the retail industry
ping centres also showed similar growth, increasing service will be supported by relatively stable electricity tariff, and
charge by 5% to 20% QoQ. Shopping centres owned by gas and oil prices. In addition, low inflation is expected to
two well-known developers, Lippo and APL Land, helped in trigger higher consumer spending.
bringing the average service charge at IDR124,834/sq m/
month for the middle class in Jakarta.
Meanwhile, the average service charge was recorded at

IDR86,639/sq m/month for middle lower class shopping
centres, due to the fact that most middle lower class shop-
ping centres still offered service charges below IDR100,000.

Industrial Estate Supply
While the other estate still focus on selling the remaining
Sector
land, KIIC has already started selling their extension land
of around 160 hectares. Most parts of the land have been
developed while in some other part is waiting for harden-
ing process. The whole construction process including the
Ferry Salanto Senior Associate Director | Research road infrastructure is scheduled to complete by the end of
2017.
Notwithstanding having only six performers this quar-
ter, the total industrial land sales reached more than 50 Whilst other estate properties still focus on selling the re-
hectares, reflecting around 30% of the total sales last maining land, KIIC has already started selling their exten-
quarter. Thanks to two industrial estates i.e. GIIC and sion land of around 160 hectares. Most parts of the land
Modern Cikande, which recorded a significant volume have been developed and some parts are waiting for the
of transactions that helped fuel the overall sales in the hardening process. The whole construction process, in-
earlier year. cluding the road infrastructure, is scheduled to complete
by the end of 2017.
Forecast at a glance Parts of Podomoro Industrial Park, which is around 216
hectares, have been acquired by CFLD, a developer and
Supply
operator of new industries cities based in China. CFLD will
KIIC may finish delivering the total 160 hectares
run their own industrial estate but has yet to get a name,
expansion by the end of the year, whilst the other
whilst Podomoro Industrial Park will run the remaining 325
possible expansion plans from several industrial
hectares under their brand. Within the same area called
estates might.
Trans Hexa Karawang, GT Techpark @ Karawang has
started to offer the land for sale.
Demand
The quarters land absorption rate suggests that
In Bekasi region, Delta Silicon 8 with a total industrial de-
industrial market started seeing a pick-up in de-
velopment of 150 hectares has developed around 83% of
mand. Looking ahead, with all the good assump-
the land, of which 48% has already been sold.
tions in the economic performance, we expect to
see a growth in demand over the next quarter,
Another significant amount of industrial land will come
which potentially makes the overall sales this
from two industrial estates in Serang of more than 2,000
year better than last year.
hectares. This expansion plan will be delivered in stages.
Price Quite a few upcoming industrial estates in Karawang are
Landlords tend to maintain land price at the cur- holding big parcels of land for future market expansions,
rent level. Industrial land price would likely be which will remain as land stock until there is a trigger from
adjusted when sales show an increasing trend. big companies to require sizeable land. Similarly, the two
industrial estates in Serang have also introduced the next
stage of their development. Similar to other sectors, indus-
trial landlords will wait for serious investors with commit-
ment to buy before starting any development work on their
land.
Industrial Land Stock Status in Some Active In Bekasi, Delta Silicon continued to focus on selling Delta
and Future Industrial Estates Silicon 8. This quarter, Delta Silicon only sold small par-
cels of land (0.16 hectare) as part of the expansion plan
4,000 from the operating company. Bekasi Fajar Industrial Estate
basically reported a substantial transaction this quarter of
3,500
around 11 hectares. However, we excluded this deal be-
3,000 cause the purpose is for non-industrial uses.
2,500 Suryacipta sold a total of 1.8 hectares to a Chinese com-

pany (building material) and a local packaging company.
2,000
Despite smaller than in the previous quarter, this transac-
Hectares
1,500 tion was the biggest in Karawang, as other active industrial

estates reported nil sales this quarter. Other transactions
1,000 of around 1.1 hectares were basically leasing transactions
from an automotive company (one hectare) and two ware-
500
house units from a plastic company and warehouse use.
0 These leasing transactions occurred in Kota Bukit Indah
Bogor Tangerang Karawang Bekasi Serang (Besland Pertiwi), an industrial estate focusing on leasing
industrial land and building.
Existing Stock Remaining Unsold Land
Potential Land To Be Developed For several quarters, Millennium has sold not more than
two hectares per quarter, but quite consistently. Only in this
quarter they reported zero sales, partly because the land
stock is limited and they are now consolidating on the next
stage of land preparation.
Land Sales Activities
Industrial market in the greater Jakarta area starts the year
with moderate amount of land sales this quarter. In general, Land Absorption in Q1 2017
sales performance has been relatively low in the early year
and will likely accelerate approaching the year-end. The Greenland International
trend of industrial sales during four consecutive quarters in Industrial Centre
2016 had been in the upward trajectory, providing optimism
for a brisk sales performance this year. Despite the slow Modern Cikande
sales in the early part of 2017, we believe the industrial
market should move on the right path particularly on the
Jababeka
back of sound economic projection.
Total industrial sales this quarter was registered at 51.8 Suryacipta

hectares, not big enough but already represented 30%
of the total transaction last year. In fact, this quarter sales Kota Bukit Indah (Besland
are even higher than Q1 and Q2 2016 transactions of 19.4 Pertiwi)
hectares and 29.0 hectares, respectively.
Delta Silicon
Sales performances were again underpinned by substan-
tial amount of transactions concluded at Modern Cikande
0 3 6 9 12 15 18 21 24 27 30
Industrial Estate (MCIE). The biggest sales this quarter,
hectares
however, was recorded by Greenland International Indus-
trial Centre (GIIC), coming from two automotive-related Source: Colliers International Indonesia - Research
industries and one supplement company, totalling to 29
hectares.
This quarter, MCIE recorded seven land transactions from

four local companies, two from China and one from Singa-
pore, involving the biggest deal of six hectares for an en-
ergy company. Other smaller transactions in this industrial
estate include chemical, logistic, metal, food and others,
which take up 16.76 hectares of land. KIEC, which is also
in Serang, reported zero sales this quarter after concluding
significant transactions in the previous quarter.

Types of Active Industries During Q1 2017 in these regions. Meanwhile, prices in established indus-
trial regions such as Karawang and Bekasi are less volatile
Logistics/
Manufacturing Warehousing Packaging mainly because prices here are already high.
1.93% 5.54% 0.58%
Chemicals Metal
6.95% 6.98%
Pharmaceutical Building Material
2.89%
Price adjustment will only occur when sales outperform.
0.96%
Plastics
Industrial sales reached its peak in 2011. Since then, the
0.10% sales volume has gradually reduced and price tend to hov-
Energy er with minor volatility, except in certain areas such as Se-
11.58%
rang, where industrial prices were way below the average
market and at the same time industrial sales were regis-
tered higher than in other regions. Going ahead, sales per-
formance will greatly determine industrial land price, whilst
sales performance is very much dependent on the macro
economic performance.
Food &
Beverage
39.33% Automotive
23.16% Greater Jakarta Industrial Land Prices
USD250.00
USD225.00
USD200.00
USD175.00
USD150.00
USD/sq m
Annual Industrial Land Absorption

USD125.00
1,400
USD100.00
1,200 USD75.00
USD50.00
1,000
USD25.00
800
USD0.00
Hectares
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017YTD
600
400
Bogor Bekasi Tangerang Karawang Serang
200
0
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017YTD
Industrial Land Prices and Maintenance Costs

(in USD equivalent)
Jakarta Bogor Tangerang Karawang Bekasi Serang maintenance costs
Land price (in USD/sq m)
(in usd/sq m/month)
region
lowest highest average lowest highest average
Bogor 120.00 299.65 209.82 0.06 0.06 0.06
Land Price Bekasi 179.79 239.72 219.30 0.06 0.08 0.07
Tangerang 149.82 187.28 168.55 0.03 0.08 0.06

The slow absorption gives more pressure on price, par- Karawang 170.00 185.00 178.75 0.05 0.10 0.06
ticularly when buyers are looking for sizeable space. Some Serang 149.82 164.81 157.32 0.03 0.05 0.04
industrial estates have already adjusted prices last year *1USD = Rp 13,349
and decided to maintain the prices this quarter. In general, Source: Colliers International Indonesia - Research
prices remained unchanged with none of the estates intro-
ducing higher price. One industrial estate in Bekasi even
lowered the bottom price.
Historically, the current prices quoted by most estates have

been in a plateau. The most active regions with significant
price changes are Serang and Tangerang, because of the
land scarcity and limited number of active industrial estates

Rental Rate Greater Jakarta Industrial Maintenance Costs
USD0.10
There are a few industrial estates focus on leasing in-
dustrial building or land. In Karawang one industrial es- USD0.09
tate quote for industrial building rental tariff at IDR50,000 USD0.08
to IDR60,000/sq m/month which has been set for several USD0.07
USD/sq m/month
years. Other industrial estate within the same region that
USD0.06
primarily sells land also offer industrial buildings for lease
at USD7.25/sq m/month. This industrial estate also of- USD0.05
fers industrial land plots for lease at IDR1.00/sq m/month. USD0.04
One under-construction industrial estate in Karawang has USD0.03
also indicated their rental tariffs for industrial buildings at
USD0.02
IDR40,000 / sq m / month.
USD0.01
Bekasi offers higher rental tariff than Karawang. One in- USD0.00
dustrial estate that only focuses on selling industrial land
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017YTD
indicated that the secondary rental market for industrial
buildings is generally quoted between IDR40,000 and
IDR100,000/sq m/month. Meanwhile, standard industrial
Bogor Bekasi Tangerang Karawang Serang
buildings within one industrial estate in Serang are offered
at IDR45,000/sq m/month. Source: Colliers International Indonesia - Research
Maintenance Cost
Concluding Thought
Industrial estate operator saw no reason to make adjust-
ment in the maintenance tariff. Bekasi continues to capture The industrial market began with slow start of which the
the highest tariff. Next quarter we anticipate one industrial majority of industrial landlords reported a slow sales con-
estate in Serang will increase service charge cost by 20% dition highlighted by decreasing amount of sales volume
just to catch up with the average market rate. during the quarter. Nonetheless, most landlords have an-
ticipated such condition and believe that Indonesia econ-
omy is in the preparation period to rebound. On the other
hand, potential inquiries coming from logistics sector fol-
lowed by automotive and food industry and others con-
tinued to occur. Such interested companies are typically
small to medium scale corporation.

Hotel Sector Hotel Supply
Ferry Salanto Senior Associate Director | Research Starred Hotel

In Q1 2017, Jakarta opened two new hotels under Tauzia
The beginning of the year will always be sluggish. Busi-
Management with the Harris Vertu (5-star) brand, which is
ness is still warming up, new hotel developments are
Harris Hotels new concept. This hotel provides 240 new
fairly limited and room sales are relatively low.
rooms to the market. The second is a 3-star hotel, Yello
Hotel Manggarai with 102 rooms. Closing Q1 2017, the
Forecast at a glance cumulative supply includes 11,250 3-star hotel rooms (85
hotel projects), 15,217 4-star hotel rooms (69 hotel proj-
ects) and 12,843 5-star hotel rooms (38 hotel projects).
Supply
Supply for the entire 2017 will be dominated by
4-star hotels with 1,508 additional rooms, fol- Cumulative Supply of Starred-Rating Hotel
lowed by 5-star hotels with 858 new rooms and Projects in Jakarta
3-star hotels with 534 rooms.
7,000
Performance
6,000
Gubernatorial elections have somewhat affect-
ed Jakartas hotel market. If the elections go
smoothly with no riots or cases of violence, there 5,000
is a better hope for the hotel market to perform
steadily. 4,000
3,000
2,000
1,000
0
2010 2012 2014 2016 2017F 2019F

Cumulative Supply of Starred-Rating Hotel
Rooms in Jakarta
20,000
18,000
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
2010
2011
2012
2013
2014
2015
2016
2017F
2018F
2019F
2017YTD
3-star 4-star 5-star
Newly Operating Starred-Rating Hotels in Jakarta

STARRED STR CHAIN SCALE OPENING
HOTEL NAME LOCATION REGION # ROOM
RATING RATE TIME
Yello Hotel Manggarai 3-star Undefined Jl Minangkabau Timur No 9 South Jakarta 102 Q1
Total 3-star hotel rooms 102
Harris Hayam Wuruk 5-star Upscale Class Hayam Wuruk Central Jakarta 240 Q1
Total 5-star hotel rooms 240
Total rooms 342
New Pipeline
STR CHAIN projected
STARRED project
HOTEL NAME SCALE LOCATION REGION ROOMS completion
RATING status
RATE TIME
Harper TB Simatupang 3-star Undefined TB Simatupang South Jakarta 180 Under 2017
Construction
Des Indes Boutique Hotel by 3-star Undefined HOS Central Jakarta 97 Under Q2 2017
Preference Tauzia Cokroaminoto Construction
Ibis Styles TB Simatupang 3-star Upper TB Simatupang South Jakarta 110 Under 2017
Midscale Construction
Class
Dalton Jakarta Hotel 3-star Undefined Otto Iskandar East Jakarta 147 Under 2017
Dinata Construction
Santika TB Simatupang 3-star Upper TB Simatupang South Jakarta 151 Under Planning Q4 2018
Upscale
Class
Hotel Pasar Senen 3-star Undefined Pasar Senen Central Jakarta 200 Under 2018
Construction
Whiz Prime Hayam Wuruk 3-star Undefined Hayam Wuruk Central Jakarta 130 Under Planning 2018
Hotel by Graha Gatsu Lestari 3-star Undefined Jl Gatot Subroto South Jakarta 100 Under 2018
construction
Total 3-star hotel rooms 1,115
continued

STR CHAIN projected
STARRED project
HOTEL NAME SCALE LOCATION REGION ROOMS completion
RATING status
RATE TIME
continuation
Aston Titanium Cijantung 4-star Upscale Cijantung East Jakarta 225 Under 2017
Class construction
Mercure PIK Avenue 4-star Upscale Pantai Indah North Jakarta 220 Under 2017
Class Kapuk construction
aloft Kebon Jeruk 4-star Upscale Kebon Jeruk West Jakarta 140 Under Q3 2017
Class construction
aloft Wahid Hasyim 4-star Upscale Wahid Hasyim Central Jakarta 160 Under Q4 2017
Class construction
Swiss-Belhotel Kirana Avenue 4-star Upscale Kelapa Gading North Jakarta 316 Opening 2017
- Kelapa Gading Class preperation
Holiday Inn Hotel & Resorts 4-star Upper Gajah Mada Central Jakarta 447 Opening 2017
Jakarta Gajah Mada Midscale preperation
Class
Novotel Cikini 4-star Upscale Cikini Central Jakarta 286 Under 2018
Class construction
Oyama Centre 4-star Undefined Yos Sudarso North Jakarta 160 Under 2018
construction
Hilton Doubletree Hotel 4-star Upper Jl Raya Adicipta West Jakarta 400 Under planning 2018
Upscale Kavling 8
Class
aloft Jakarta Simatupang 4-star Upscale TB Simatupang South Jakarta 180 Under Q4 2019
Class construction
Pullman PIK Avenue 5-star Upper Pantai Indah Non CBD 200 Under 2017
Upscale Kapuk construction
Class
Alila - SCBD lot 11 5-star Luxury Class SCBD CBD 250 Under 2017
construction
The Langham District 8@Lot 5-star Luxury Class SCBD CBD 200 Under 2017
28 SCBD construction
JW Marriott @St Moritz 5-star Luxury Class Puri Indah West Jakarta 208 Under 2017
construction
Park Hyatt Hotel 5-star Luxury Class Kebon Sirih Central Jakarta 150 Under Q1 2018
construction
InterContinental Jakarta 5-star Luxury Class Pondok Indah South Jakarta 300 Under 2018
Pondok Indah Hotel & construction
Residences
Regent 5-star Luxury Class Gatot Subroto CBD 160 Under 2018
construction
St Regis 5-star Luxury Class HR Rasuna Said CBD 280 Under Q1 2019
construction
Waldorf Astoria 5-star Luxury Class Thamrin CBD 181 Under 2019
construction
Total hotel rooms 5,578
Source: Colliers International Indonesia - Research, STR
For the remainder of 2017, there will be a total of 4,356

additional hotel rooms in Jakarta. Should all of the projects
begin operation, the total number of hotel rooms in Jakarta
will be 43,666, representing a 12.06% YoY growth. Quite a
few projects are on-hold and will be reactivated.

Budget Hotel The slow growth of budget hotel development is very much
affected by the low performance of the overall hotel market
For this quarter, Amaris started operating their new hotel in in Jakarta. This challenging market has led to a price war
Mampang, offering 90 rooms. Overall, the total room stock amongst hotels as their means to survive.
of budget hotels in Jakarta up to Q1 2017 is 5,907, pro-
vided by 50 hotels.
Newly Operating Budget Hotel in Jakarta

STARRED
HOTEL NAME LOCATION REGION # ROOM OPENING TIME
RATING
Amaris Mampang Economy Class Jl Mampang Prapatan Raya No. 66 South Jakarta 90 Q1
Budget Hotel Development Pipelines

PROJECTED
STR CHAIN NO. OF
HOTEL NAME LOCATION REGION PROJECT STATUS COMPLETION
SCALE RATE ROOMS
TIME
Whiz - Cipete Undefined Cipete South Jakarta 180 Under construction 2017
NEO Kebayoran Midscale Class Kebayoran Lama South Jakarta 102 Under construction 2017
Amaris Slipi Economy Letjen S Parman West Jakarta 146 Under construction Q2 2017
MaxOne Hayam Wuruk Undefined Hayam Wuruk Central Jakarta 120 Under construction 2017
Total budget hotel rooms 797
Source: Colliers International Indonesia - Research, STR
Hotel Demand Average Occupancy Rate (AOR)

100%
In Jakarta, demand in the hotel sector is still dominated
by the corporate market. The declining oil and gas and 90%
mining business has somewhat affected the hotel market 80%
in general. Furthermore, the limitation of government use
of hotels has inevitably dwindled overall hotel occupancy, 70%
which pushes hoteliers to search for new sources of other 60%

corporate markets.
50%
40%
Performance 30%
Most of the time, the first quarter sees sluggish hotel per- 20%
formance. However, the official visit of King Salman in early
10%
March, as well as the IORA Summit, brought an immense
number of delegations to Jakarta and Bali. This helped in- 0%
crease hotel performance, despite happening only in cer- 2013 2014 2015 2016 2017YTD
tain hotels in selected areas.
Jakarta CBD Outside CBD
The recent overheated political situation highlighted by Source: STR Global
massive and intense street demonstrations may have less
impact on the local market but not on overseas market.
Some hoteliers, particularly those in the central commercial
area, have reported that their overseas travellers are quite
sensitive over security-related issues and may postpone or
even cancel their trip to the city.

Monthly Average Occupancy Rate Monthly Average Daily Rate
100% USD140.00
90%
USD120.00
80%
USD100.00
70%
60% USD80.00
50%
USD60.00
40%
USD40.00
30%
20% USD20.00
10% USD0.00
Jul-16
Aug-16
Sep-16
Nov-16
Dec-16
Jan-17
Oct-16
Feb-17
0%
Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17
Jakarta CBD Outside CBD Jakarta CBD Outside CBD
Source: STR Global Source: STR Global
Average Daily Rate (ADR) As predicted, the Q1 2017 performance was low. Political
issues related to the gubernatorial elections in Jakarta are
USD140.00 almost the same with the effects of a presidential election.
Business tends to wait and see, particularly with overseas
USD120.00 guests.
USD100.00 The oversupply situation has caught the attention of the

Indonesian Hotel & Restaurant Association (PHRI). They
USD80.00 urge the government should start implementing hotel mor-
atorium by limiting the number of permits for new hotel
USD60.00 developments in several areas.
USD40.00 On the corporate level, several hotel landlords have put

themselves in on-hold position, waiting until the situation
USD20.00 and timing are feasible for their business.
USD0.00
2013 2014 2015 2016 2017YTD
Jakarta CBD Outside CBD
Source: STR Global
For more information: Contributors:

Ferry Salanto Eko Arfianto Nurul Soraya
Senior Associate Director | Research Manager | Research Senior Research Executive | Research
+62 21 3043 6888
Hern Rizal Gobi
ferry.salanto@colliers.com
Assistant Manager | Research
Copyright 2017 Colliers International.

The information contained herein has been obtained from
sources deemed reliable. While every reasonable effort has
been made to ensure its accuracy, we cannot guarantee it.
No responsibility is assumed for any inaccuracies. Readers
are encouraged to consult their professional advisors prior to
acting on any of the material contained in this report.
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Colliers Quarterly

JAKARTA PROPERTY MARKET REPORT

Colliers Quarterly | Q1 2017 | Jakarta | Colliers International

Forecast at a glance Satrio Tower

CBD Office Annual Supply based on

100,000 For Lease For Sale

Additional Supply YTD Supply Under Construction In Planning

4 Colliers Quarterly | Q1 2017 | Jakarta | Colliers International

5 Colliers Quarterly | Q1 2017 | Jakarta | Colliers International

Annual Supply Additional Supply YTD

Under Construction In Planning Source: Colliers International Indonesia - Research

Source: Colliers International Indonesia - Research

New Supply Pipeline

6 Colliers Quarterly | Q1 2017 | Jakarta | Colliers International

Outside the CBD (excluding TB Simatupang)

2017 Zuria 6,584 For Lease Under Construction

Source: Colliers International Indonesia - Research

7 Colliers Quarterly | Q1 2017 | Jakarta | Colliers International

The average occupancy rates continued to decline mod- 95%

Regarding the tenant market, every new building will find

Grade B 93.1 91.6 90.6 80%

85% Q1 2016 Q1 2017

80% Source: Colliers International Indonesia - Research

Source: Colliers International Indonesia - Research

8 Colliers Quarterly | Q1 2017 | Jakarta | Colliers International

Average Occupancy Rates in Outside the CBD

Other areas outside the CBD (excluding TB Simatupang)

9 Colliers Quarterly | Q1 2017 | Jakarta | Colliers International

In line with the occupancy performance, the average rents IDR800,000

Based on building grades, average rents for grade B and IDR200,000

Source: Colliers International Indonesia - Research

to catch up with the required occupancy level in order to

Average Asking Rents in the CBD (All Classes IDR400,000

Outside the excluding TB

Q1 2017 IDR228,008 IDR214,607 IDR209,852 IDR246,154

10 Colliers Quarterly | Q1 2017 | Jakarta | Colliers International

Source: Colliers International Indonesia - Research

11 Colliers Quarterly | Q1 2017 | Jakarta | Colliers International

CBD Outside CBD Source: Colliers International Indonesia - Research

Source: Colliers International Indonesia - Research

The Range of Service Charge based on

tion brought the average service charge at IDR79,714/sq

Outside the CBD, the average service charges were re-

12 Colliers Quarterly | Q1 2017 | Jakarta | Colliers International

Pre-committed take-up rates achieved around 70% for

IDR90,000 We have witnessed an impressive sales performance of

Source: Colliers International Indonesia - Research

13 Colliers Quarterly | Q1 2017 | Jakarta | Colliers International

2017YTD 0 100,000 200,000 300,000 400,000 500,000

14 Colliers Quarterly | Q1 2017 | Jakarta | Colliers International

15 Colliers Quarterly | Q1 2017 | Jakarta | Colliers International

Completed Apartment Projects During Q1 2017

List of Newly Introduced/Launched Projects in Q1 2017

17 Colliers Quarterly | Q1 2017 | Jakarta | Colliers International

The Distribution of Existing and Under-Construction Apartment Projects in Jakarta

18 Colliers Quarterly | Q1 2017 | Jakarta | Colliers International

Sudirman Suites Jl. Sudirman CBD Pikko Group 380 Under-construction

19 Colliers Quarterly | Q1 2017 | Jakarta | Colliers International

20 Colliers Quarterly | Q1 2017 | Jakarta | Colliers International

21 Colliers Quarterly | Q1 2017 | Jakarta | Colliers International

Demand Take Up Rate of Existing and Under-

than a speedy one is the substantial future pipeline supply

towards better consumer purchasing power, especially for

22 Colliers Quarterly | Q1 2017 | Jakarta | Colliers International