Colliers Property Market Report JKT-1Q2015

Research &
Forecast Report
4Q 2013
Jakarta
1st
Quarter
| Office
2015
Jakarta Property Market Report
Accelerating success.
OFFICE SECTOR
Office Space
Offered for Lease
By Ferry Salanto
Supply
Associate Director | Research

Ferry.Salanto@colliers.com
CBD Office Cumulative Supply

8,000,000
7,000,000
sq m
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
Existing Supply
2019F
2018F
2017F
2016F
2015F
2015YTD
2014
2013
2012
2011
2010
Annual Supply
Source: Colliers International Indonesia - Research
CBD Office Cumulative Supply Based on Area

8,000,000
7,000,000
sq m
6,000,000
3,000,000
2,000,000
1,000,000
Existing Supply
Research & Forecast Report | 1Q 2015 | Office | Colliers International
2019F
2018F
2017F
2016F
2015F
Annual Supply
2015YTD
2014
2013
2012
2011
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4,000,000
2010
Colliers International
5,000,000
In the CBD, except Jalan Thamrin, all sub-markets will contribute

new office buildings in 2015. Jalan Sudirman will lead in terms of
both number of office buildings (with three office buildings) and
area of office space (43% of annual supply in 2015). Gatot Subroto
is one active sub-market with additional space of 130,000 sq m
from two office buildings in 2015.
With a total projected 260,500 sq m of office space in 2015, a new
office building in Jalan Sudirman will have an area of around
86,000 sq m. This indicates that the higher plot ratio in this main
corridor of the CBD has been implemented. Sahid Sudirman
tower (258 m in height), is the second tallest office building in
Jakarta after Wisma 46 (261.5 m in height). Sinarmas MSIG, a
future office building in Sudirman, will also be included in the
five tallest office buildings in Jakarta. Later, Jakarta will see an
office building with 70 levels situated around Jalan Thamrin that
is expected to be in operation in 2018.
Of all of the projected office buildings in 2015 - 2019, about 75% of
the 2.9 million sq m have started construction work. This means
that only 12 office buildings representing 816,500 sq m are still
in the planning stage as of 1Q 2015. Including newly operating
office buildings in 2015, the CBD will see around 500,000 sq m of
projected additional space per year up to 2019.
1,000,000
900,000
800,000
700,000
600,000
sq m
Apart from the continued influx of new office space, there will
a reduction in the total office space. Two office buildings in
Sudirman are being demolished as of 1Q 2015. Jalan Sudirman,
as the main thoroughfare in the CBD, is undergoing a mega-MRT
project to alleviate worsening traffic problems, particularly in the
commercial area. With the MRT project, DKI Jakarta Government
allow land owners along the MRT route for higher plot ratio, With
very expensive land prices in the area and given the higher plot
ratio, several old buildings are being considered for demolition
and replaced with taller office buildings. By eliminating these
two office buildings, the cumulative office supply only grew 2.9%
YoY to 4.78 million sq m as of 1Q 2015.
Annual Future Office Space in the CBD
500,000
400,000
300,000
200,000
100,000
0
2015F
2016F
For Lease
2017F
For Sale
2018F
2019F
In Planning
Based on marketing scheme, offices for lease constitute 78.2%

of the cumulative supply as of 1Q 2015. It is projected that
additional supply of offices for lease will still dominate both
under-construction and in-planning projects. Excluding inplanning projects, the total future additional space of offices for
lease in 2015 - 2019 is 1.23 million sq m with about 0.87 million
sq m of offices for sale.
Outside CBD Office Cumulative Supply

3,000,000
2,500,000
2,000,000
sq m
After very limited additional office space last year, two office
buildings in the CBD are officially opened, namely Sahid
Sudirman and Gran Rubina which together contributed 169,938
sq m of new office space. The CBD further anticipates around
400,000 sq m of office space projected to be in operation before
the end of 2015. The projected additional office supply will be
contributed by eight office buildings that as of 1Q 2015 are in the
finishing stages of construction.
1,500,000
1,000,000
500,000
Existing Supply
2019F
2018F
2017F
2016F
2015F
Annual Supply
2015YTD
2014
2013
2012
2011
2010
1,000,000
800,000
600,000
400,000
200,000
2018F
2017F
2016F
2015F
2015YTD
Existing Supply
2012
250,000
2011
300,000
2014
2010
Annual Future Office Space in the Outside CBD
1,200,000
2013
The outside CBD area will continue to provide office space at

least up to 2017. We expect to see additional supply in the outside
CBD of around 780,000 sq m in 2016 - 2017. Central and West
Jakarta will contribute about the same amount as South Jakarta
in terms of number of office buildings.
Cumulative Office Space in TB Simatupang
sq m
In spite of the fact that the outside CBD regularly provides less
office space than the CBD, since 2010, additional office supply
in the outside CBD has been consistently above 100,000 sq m
per year. In 2015, it is expected that 334,206 sq m of additional
office space will enter the market. As of 1Q 2015, almost 43% of
the above supply has been in operation. South Jakarta will be
the most active area, contributing nine of the 12 projected office
buildings in 2015.
Annual Supply
sq m
200,000
150,000
100,000
50,000
0
2015F
For Lease
2016F
2017F
For Sale
2018F
2019F
In Planning
Almost 47% of future office buildings in the outside CBD

(excluding TB Simatupang) are projects in the planning stage
(no construction activity in the field). The projects under
construction are dominated by strata-title offices for sale.
TB Simatupang continues to bolster its position as a secondary

commercial area after the CBD, particularly when the area is
currently contributing more office space. As of this quarter,
four newly operating office buildings in South Jakarta are
located in TB Simatupang and this is equal to the office supply
in 2014. The four office buildings located in the southern part
of TB Simatupang, are 18 Office Park, Plaza Oleos, AD Premier
and Metropolitan Tower. Together, these buildings contributed
142,678 sq m to bring the cumulative supply in TB Simatupang
to 793,343 sq m as of 1Q 2015. Another three office buildings in
TB Simatupang are projected to open in 2015, namely South
Quarter 1 and 2, and Graha MRA. These office buildings have
reached final stages of construction and are expected to bring
additional new office space of 237,234 sq m by the end of 2015,
almost three times the additional supply in 2014.
Annual Future Office Space in TB Simatupang
Annual Supply in the Outside CBD and TB Simatupang

300,000
250,000
250,000
200,000
sq m
200,000
sq m
150,000
100,000
150,000
100,000
50,000
50,000
For Sale
In Planning
Cumulative Supply in the Outside CBD and TB

Simatupang
4,000,000
3,500,000
3,000,000
sq m
2,500,000
2,000,000
1,500,000
1,000,000
500,000
2018F
2017F
2016F
2015F
2015YTD
2014
2013
2012
2011
2010
TB Simatupang
TB Simatupang
2019F
2018F
2017F
2016F
2015F
2014
Overall, the construction work of future office buildings in TB

Simatupang is still on schedule. TB Simatupang will see around
260,000 sq m of total projected additional supply in 2016 - 2017,
almost equal to the total supply in 2015 alone.
2013
Outside CBD excluding TB Simatupang
2015YTD
For Lease
2017F
2012
2016F
2010
2015F
2011
New Supply Pipeline

PROJECTED
COMPLETION
OFFICE BUILDING PROJECTS NAME
LOCATION
SGA
MARKETING SCHEME
STATUS DEVELOPMENT
CBD
2015
Sinarmas MSIG
Sudirman
75,000 For Lease
Under Construction
2015
The Noble House Office Tower
Mega Kuningan
45,000 For Lease
Under Construction
2015
AIA Center (Menara Selaras)
Sudirman
47,000 For Lease
Under Construction
2015
Cemindo Tower
Rasuna Said
60,995 For Lease
Under Construction
2015
Telkom Landmark Tower II
Gatot Subroto
65,000 For Lease
Under Construction
2015
Bank Muamalat Tower (Satrio Square)
Satrio
24,600 For Lease
Under Construction
2015
BTPN Tower (Bahana Office Tower)
Mega Kuningan
50,000 For Lease
Under Construction
2015
Wisma Mulia 2
Gatot Subroto
65,000 For Lease
Under Construction
2016
Convergence
Rasuna Said
36,367 For Lease & Sale
Under Construction
2016
International Financial Center 2
Sudirman
50,000 For Lease
Under Construction
2016
Menara Pertiwi
Mega Kuningan
41,456 For Sale
Under Construction
2016
Capital Palace (Office Tower @ ST Regis)
Gatot Subroto
90,511 For Lease
Under Construction
2016
Menara Palma 2
Rasuna Said
50,000 For Lease
Under Construction
2016
Centennial Tower
Gatot Subroto
2016
Ciputra World Jakarta 2
Satrio
Under Construction
2016
Satrio Tower
Satrio
31,604 For Lease
Under Construction
2016
The Tower
Gatot Subroto
56,492 For Sale
Under Construction
2016
Lippo Thamrin Office Tower
Thamrin
16,500 For Sale
Under Construction
2016
T Tower (BJB Tower)
Gatot Subroto
24,000 For Sale
Under Construction
2017
Mangkuluhur Tower
Gatot Subroto
Under Construction
2017
Sequis Life Tower 2
Sudirman
80,000 For Lease
Under Construction
2017
Gayanti City
Gatot Subroto
25,000 For Lease
In Planning
2017
Prosperity Tower @ Distict 8
Sudirman
71,545 For Sale
Under Construction
2017
Treasury Tower @ District 8
Sudirman
139,000 For Sale
Under Construction
2017
Sopo Del Tower A
Mega Kuningan
Under Construction
2017
Sopo Del Tower B
Mega Kuningan
40,000 For Lease
Under Construction
2018
Sudirman 7.8 (ex Nugra Santana)
Sudirman
2018
SSI Tower (Graha Surya Intenusa)
Rasuna Said
2018
Mangkuluhur Tower II
Gatot Subroto
2018
Tower Two at The City Center
2018
World Trade Center III
2018
Icon Tower
2018
Tower 2 @ Ciputra World Jakarta 1
2018
100,000 For Sale
Under Construction
52,000 For Sale
In Planning
100,000 For Lease
In Planning
50,000 For Lease
In Planning
Sudirman
39,204 For Lease
Under Construction
Sudirman
70,000 For Lease
Under Construction
Sudirman
72,500 For Lease
In Planning
Satrio
Under Construction
Astra Tower
Sudirman
80,000 For Lease
Under Construction
2018
Thamrin Nine
Thamrin
97,500 For Lease
Under Construction
2018
Chitaland
Gatot Subroto
100,000 For Lease
Under Construction
2019
Gran Rubina Tower 2
Rasuna Said
2019
The Hundred
2019
SCBD Lot.10 (PCPD Tower)
2019
World Capital Tower
2019
Tower Three at The City Center
2019
32,000 For Sale
In Planning
Mega Kuningan
35,000 For Lease
Under Construction
Sudirman
96,000 For Lease
Under Construction
Mega Kuningan
72,000 For Sale
Under Construction
Sudirman
34,000 For Lease
In Planning
Tower 1 at Sampoerna Strategic Square
Sudirman
43,000 For Sale
In Planning
2019
Tower 2 at Sampoerna Strategic Square
Sudirman
118,000 For Lease
In Planning
2019
Redevelopment at Sequis Center
Sudirman
100,000 For Lease
In Planning
2019
Redevelopment eX
Thamrin
150,000 For Lease
In Planning
continued
New Supply Pipeline

PROJECTED
COMPLETION
OFFICE BUILDING PROJECTS NAME
LOCATION
SGA
MARKETING SCHEME
STATUS DEVELOPMENT
continuation
OUTSIDE CBD EXCLUDING TB SIMATUPANG
2015
Menara Sentraya
Blok M
52,072 For Sale
Under Construction
2015
ST Moritz Office Tower
Puri Indah
19,500 For Sale
Under Construction
2015
The Suites
Pantai Indah Kapuk
13,200 For Sale
Under Construction
2015
Maxima Tower
Kelapa Gading
8,000 For Lease
Under Construction
2015
Nariba Office Suites
Mampang
4,200 For Lease
Under Construction
2016
Puri Indah Financial Tower
Puri Indah
38,500 For Sale
Under Construction
2016
Gallery West
Kebun Jeruk
29,000 For Sale
Under Construction
2016
L'Office
Pasar Minggu
41,597 For Sale
Under Construction
2016
MNC Tower II
Kebon Sirih
20,000 For Lease
Under Construction
2016
Sky 18 Tower
Pasar Minggu
27,500 For Sale
Under Construction
2016
Soho Capital
Slipi
36,000 For Sale
Under Construction
2016
Altira
Sunter
40,000 For Sale
Under Construction
2016
BKP Office Tower
Sunter
16,000 For Lease
Under Construction
2016
Tamansari Parama
Wahid Hasyim
10,800 For Sale
Under Construction
2017
Soho Pancoran
Pancoran
30,000 For Sale
Under Construction
2017
Jakarta Box Tower
Kebon Sirih
36,000 For Lease
Under Construction
2017
Lippo Tower Holland Village
Cempaka Putih
27,000 For Sale
In Planning
2017
One Tower
Kemayoran
21,400 For Sale
In Planning
2017
Ciputra Business District Kemayoran Tower 1
Kemayoran
40,000 For Sale
In Planning
2017
Ciputra Business District Kemayoran Tower 2
Kemayoran
40,000 For Lease
In Planning
2017
Ciputra International Puri 1 Phase 1
Puri
15,000 For Lease
In Planning
2017
Puri
20,000 For Lease
In Planning
2017
Puri
30,000 For Lease
In Planning
2018
Kota Kasablanka Office Tower 2
Casablanca
90,000 For Lease
In Planning
2018
Ciputra International Puri Phase 2
Puri
15,000 For Lease
In Planning
2018
Puri
15,000 For Lease
In Planning
2018
Ciputra Internatinal Puri 2 Phase 3
Puri
15,000 For Lease
In Planning
2018
Summarecon Tower
Slipi
70,000 For Lease
In Planning
TB SIMATUPANG
2015
Graha MRA
13,000 For Lease
Under Construction
2015
South Quarter Tower 1
40,778 For Sale
Under Construction
2015
40,778 For Lease
Under Construction
2016
40,778 For Lease
Under Construction
2016
Zuria
6,584 For Lease
Under Construction
2016
Cibis Tower
60,800 For Lease
Under Construction
2017
Beltway Office Park Tower 4
30,839 For Lease
Under Construction
2017
The Sima
60,000 For Lease
Under Construction
2017
Arkadia Tower G
30,000 For Lease
In Planning
2017
The Manhattan Square Tower 2
In Planning
Occupancy Rate in All Categories of Office Building

in the CBD
Demand and Occupancy

CBD
1Q 2014
YoY
1Q 2015
96.5%
QoQ
4Q 2014
93.6%
95.7%
Number of Space Absorbed and Occupancy in the

CBD
sq m
5,000,000
100%
4,500,000
90%
4,000,000
80%
3,500,000
70%
3,000,000
60%
2,500,000
50%
2,000,000
40%
1,500,000
30%
1,000,000
20%
500,000
10%
Vacant Space
2015YTD
2014
2013
2012
0%
2011
2010
98%
96%
Space Absorbed
100%
Occupancy
Although the office supply was very limited in 2014, the

occupancy rate in the CBD dropped from 96.5% in early 2014 to
95.7% at the end of 2014. With new office buildings beginning
operations this quarter, the occupancy in the CBD fell to 93.6%.
The decreasing trend in the occupancy rates would indicate that
more tenants are now considering relocation to the outside CBD.
94%
92%
90%
88%
86%
84%
82%
80%
1Q 2014
Premium
Grade A
Grade B
2015YTD
Grade C
All in all, the office market still expects demand from the
finance-related industries including insurance and banking,
which still require large spaces. The growing information and
technology industries, such as telecommunications will also
help create office demand in the CBD. Moreover, the policy of
the new government to accelerate the countrys infrastructure
and energy sectors, will hopefully provide opportunities for the
office space business from tenants like consultants or suppliers
who support those industry sectors.
The huge supply projected for the next couple of years will
create a challenge for the office business. As of 1Q 2015, the
total projected supply for 2016 has yet to report pre-committed
absorption. Given this situation, we believe that the projected
occupancy will continuously decline in the CBD.
A general situation whereby substantial demand is largely

driven by the mining, oil and gas sectors is now becoming less.
Tapering business conditions and high asking rents are factors
which likely cause tenants to consider cutting their operational
expenses.
About 62% of the total remaining space in the CBD as of 1Q
2015 was contributed by vacant spaces at Premium and Grade A
office buildings. Increasingly high asking base rent at Premium
and Grade A office buildings, again, has left more vacant space,
and caused the occupancy of that building category to decrease
by 3.7% QoQ to 92.1%.
2014
Pre-Commitment Demand for Future Office Buildings

for Lease in the CBD
Number of Space Absorbed and Occupancy in the

Outside CBD
3,000,000
100%
90%
2,500,000
2016F
80%
70%
2,000,000
sq m
60%
1,500,000
50%
40%
1,000,000
2015F
30%
20%
500,000
10%
0
100,000
200,000
300,000
400,000
500,000
2010
sq m
Space Absorbed
Vacant Space
Space Absorbed
2014
Vacant Space
Occupancy
Commitment Demand for Future Office Buildings

for Lease in the Outside CBD
Outside CBD
94.6%
2012
1Q 2014
0%
YoY
1Q 2015
90.9%
QoQ
4Q 2014
93.2%
The occupancy rates in the outside CBD showed a similar trend

to the CBD, declining 2.3% QoQ to 90.9% as of 1Q 2015. Large
vacant spaces were largely contributed by office buildings
in South Jakarta. As of 1Q 2015, 62.1% of the 233,921 sq m of
remaining space in the outside CBD was in South Jakarta. Of
that, 72.9% was found at newly operating office buildings in 2014
- 2015.
The occupancy rates of office buildings in South Jakarta, which
was recorded at 88.9%, experienced a decreasing trend by 5.2%
QoQ. In other areas, the growth of occupancy was relatively flat
QoQ and only West Jakarta recorded an average occupancy of
90.7% as of 1Q 2015. The overall West Jakarta office market
registered a vacant space reduction of around 20% QoQ.
Officially operating committed tenants at new office buildings
have helped the occupancy in West Jakarta climb 2% over the
previous quarter.
2016F
2015F
30,000
60,000
90,000
120,000
150,000
sq m
Space Absorbed
Vacant Space
Asking Base Rent
TB Simatupang
1Q 2014
YoY
96.2%
1Q 2015
QoQ
84.3%
4Q 2014
92.8%
Due to four new office buildings officially operating, the

occupancy rate in TB Simatupang dropped significantly by 8.6%
QoQ to 84.3% as of 1Q 2015. This is the first time since 2002 that
the occupancy in TB Simatupang was below 90%. However, high
pre-committed demand for office buildings in 2015 is expected
to return the occupancy rate to its higher level. Although newly
operating office buildings in 2015 caused occupancy to decline,
those new office buildings have secured a 50% occupancy rate
on average when beginning operations. Overall, pre-committed
occupancy for all office buildings in 2015 has reached 44.1% as
of 1Q 2015.
Number of Space Absorbed and Occupancy in TB

Simatupang
700,000
100%
90%
600,000
80%
sq m
500,000
70%
60%
400,000
50%
300,000
40%
30%
200,000
20%
100,000
10%
0%
2010
Space Absorbed
2012
Vacant Space
2014
Occupancy
CBD
All rental numbers presented in this report are asking rental
rates as published by developers. Tenants are becoming more
sensitive to the increase in the rental rates recently particularly
given the fact that vacant office space is quite abundant and
the economy is slowing down. Amidst tenants concern over
the high occupancy costs, the average rental rate in rupiah was
IDR257,543/sq m/month as of 1Q 2015 for all classes of office
buildings, posting an upward adjustment of 1.8% QoQ.
Some office buildings charging in rupiah lowered their rents
from the previous quarter. However, increasing rents at office
buildings with large vacant spaces have caused the overall asking
base rents to climb. As of 1Q 2015, at least two office buildings
holding vacant spaces of more than 15,000 sq m raised the rent
by IDR50,000 to 80,000/sq m/month.
The asking rents in US dollars showed almost similar growth of
3.6% QoQ, to USD38.18/sq m/month as of 1Q 2015.
Office buildings charging in US dollars and with higher rents
above the market average generally having large vacant spaces.
As of 1Q 2015, 58.8% of the total remaining vacant space was
found at office buildings charging USD40.00/sq m/month and
above. Nevertheless, some significant adjustment was made by
office buildings charging in US dollars by lowering their rents
between USD2.00 and 10.00 as of 1Q 2015. These adjustments
caused office rents to climb only modestly QoQ.
Similar to buildings charging in US dollars, of the total vacant
space supplied by office buildings charging rent in rupiah, 46.9%
is available at office buildings charging rent above the market
average rent. This resulted in a higher average rent in rupiah.
In the high specifications class of buildings charging in US
dollars, the asking base rent of Premium and Grade A office
buildings in the CBD continued to decrease. As of 1Q 2015, the
average asking rent was USD42.56/sq m/month, down modestly
by 0.3% QoQ. It has been three consecutive quarters since 2H
2014 that the average asking base rent of Premium and Grade A
office buildings has decreased QoQ.
The average asking rental rate for Premium office buildings only
was USD49.04/sq m/month as of 1Q 2015, down moderately
QoQ.
10 Research & Forecast Report | 1Q 2015 | Office | Colliers International
Average Asking Rental Rates
Average Asking Rental Rates Based on Grade
in Rupiah
in Rupiah
IDR 600,000
IDR 300,000
IDR 550,000
IDR 500,000
IDR 250,000
IDR 450,000
IDR 400,000
IDR 200,000
IDR 350,000
IDR 300,000
IDR 150,000
IDR 250,000
IDR 200,000
IDR 100,000
IDR 150,000
IDR 100,000
IDR 50,000
IDR 50,000
IDR 0
IDR 0
2010
2011
2012
2013
2014
Grade A
2015YTD
Grade B
Grade C
in US Dollar
in US Dollar
USD 60.00
USD 60.00
USD 50.00
USD 50.00
USD 40.00
USD 40.00
USD 30.00
USD 30.00
USD 20.00
USD 20.00
USD 10.00
USD 10.00
USD 0.00
2010
2011
2012
All Classes
11
2013
2014
2015YTD
USD 0.00
Premium
Premium
Grade A
Grade B
Grade C
Outside CBD
The average asking rental rate in the outside CBD showed
modest growth QoQ at office buildings charging in both rupiah
and US dollars. As of 1Q 2015, the asking base rent registered an
average of IDR191,603/sq m/month, while in US dollars it was
USD21.47/sq m/month.
The most expensive office locations in the outside CBD area
remain in Central and South Jakarta. The asking base rent in
Central and South Jakarta was between IDR205,974 and 215,172/
sq m/month. In fact, West Jakarta showed significant growth in
the rental rates, at 6.2% QoQ, more than in other areas. Several
office buildings that have been operating since 2013 - 2014 have
had a significant impact on the overall asking base rent in West
Jakarta, raising it to IDR197,611/sq m/month.
The least favourite office locations, i.e. North and East Jakarta
recorded the lowest asking base rents at between IDR106,736
and 108,729/sq m/month as of 1Q 2015.
Being the secondary business area after the CBD, TB Simatupang
(which is part of South Jakarta) helps maintain an asking base
rent in South Jakarta to register at the highest level. Although the
QoQ growth of asking base rents was low, four office buildings
newly operating in early 2015 have raised the asking rent to
IDR228,822/sq m/month and USD21.71/sq m/month.
Average Asking Rental Rates in the Outside CBD

in Rupiah
IDR 250,000
IDR 200,000
IDR 150,000
IDR 100,000
IDR 50,000
IDR 0
2010
2011
2012
2013
2014
2015YTD
TB Simatupang
in US Dollar
USD 25.00
USD 20.00
USD 15.00
USD 10.00
USD 5.00
USD 0.00
2010
2011
2012
2013

12
2014
2015YTD
TB Simatupang
Service Charge
The gap between service charges in the CBD and outside CBD
tapered. Last year, the service charge in the outside CBD was
around 20% less than in the CBD. As of 1Q 2015, the service charge
(both IDR and US dollars) in the outside CBD was IDR65,498/
sq m/month, up 20.1% QoQ. Office buildings newly operating
during 2013 - 2014 had maintenance costs between IDR45,000
and 85,000/sq m/month. Currently, most of the new buildings
in the outside CBD continue to improve building service quality
and facilities. Moreover, some office buildings, primarily in TB
Simatupang, are classified as green buildings. In TB Simatupang
alone, the average service charge was IDR59,340/sq m/month,
and USD5.93/sq m/month.
Service charges in the CBD climbed 8.5% QoQ and were
IDR76,356/sq m/month as of 1Q 2015. Compared to the outside
CBD, currently it is 14% higher than in the outside CBD. Based
on building grade, service charges at Premium and Grade A
office buildings in the CBD were IDR86,562/sq m/month, up
21.5% QoQ. Seven Premium and Grade A office buildings in the
CBD had service charges of IDR90,000/sq m/month and above
during the reviewed quarter.
The Range of Service Charge Cost in the Two Main

Areas in Jakarta
IDR 100,000
IDR 80,000
IDR 60,000
IDR 40,000
IDR 20,000
IDR 0
CBD
Service Charges of Office Buildings in Jakarta

IDR 80,000
IDR 70,000
IDR 60,000
IDR 50,000
IDR 40,000
IDR 30,000
IDR 20,000
IDR 10,000
IDR 0
2010
2011
CBD
2012
2013
2014
2015YTD
Outside CBD
Although service charges continued to increase, around 35% of

office buildings, both in the CBD and the outside CBD still had
service charges below IDR50,000/sq m/month.
13
Outside CBD
Strata-title Office
Annual Supply and Take-up Rates of Strata-title

Office Buildings in the CBD
Average Asking Price of Strata-title Office Space

per Sq m in Jakarta
200,000
180,000
160,000
IDR 60,000,000
sq m
140,000
IDR 50,000,000
120,000
100,000
80,000
IDR 40,000,000
60,000
40,000
IDR 30,000,000
20,000
IDR 20,000,000
2010
2011
2012
2013
Outside CBD exclude TB Simatupang
2014
2015YTD
TB Simatupang
The CBD will see a large amount of additional office space for sale
in 2015 - 2018, starting with the operation of Gran Rubina and
Sahid Sudirman, which brought the cumulative supply of stratatitle offices in the CBD to 986,767 sq m as of 1Q 2015. At least
another 14 strata-title office buildings will provide 849,564 sq m
in the CBD up to 2018. The majority of office buildings are under
construction and are expected be completed as scheduled.
The high commitment of office transactions has kept the average
take-up rate at 97.6% as of 1Q 2015. Despite dropping QoQ,
the take-up rate will bounce back due to the fact that there
will be no new additional supply of strata-title office space for
sale in the remainder of 2015. During this quarter, some future
strata-title office buildings projected to be in operation in 2016
and 2017 have been fully absorbed, which helped bring the
pre-commitment sales to 38 and 61%, respectively. These precommitment levels are expected to keep the projected take-up
rate at a high level in the future.
2015YTD
2014
2013
2012
2011
Annual Supply
IDR 0
CBD
2010
IDR 10,000,000
2009
2008
Annual Take-up
Pre-Committed Demand of Future Strata-title Office

for Sale in the CBD
2018F
2017F
2016F
2015F
100,000
200,000
300,000
400,000
sq m
Space Absorbed
Space Unabsorbed
In this quarter, the average asking price of vacant space in

strata-title office buildings in the CBD was IDR46.9 million/sq
m. This suggests a lower price QoQ because some newly underconstruction strata-title office buildings, due to their location,
offer a launch price lower than the market average. With less
vacant space and no newly launched strata-title buildings
offered in US dollars during this quarter, the office space price
has grown by 5.4% QoQ to USD4,492/sq m.
14
With no additional strata-title office space, the take-up rate in

the outside CBD (excluding TB Simatupang) stayed at 94.1% as
of 1Q 2015. The projected take-up rate in 2015 - 2016 is expected
to be quite high in the outside CBD where the pre-committed
absorption of office buildings in those years has reached 60% as
of now. The high take-up rates of both existing and future supply
has raised the asking prices in the outside CBD to an average of
IDR28.6 million/sq m, up 4.1% QoQ.
Annual Supply and Take-up Rates of Strata-title

Office in the Outside CBD
Concluding Thoughts
250,000
A more conducive political situation is expected to help

accelerate an increase in occupancy to catch up the projected
demand in the years ahead. More implemented government
programmes are expected to invite more investors to come and
bolster the absorption of office space.
200,000
sq m
All newly operating strata-title offices are located in TB

Simatupang, bringing 134,840 sq m of additional space for sale.
This relatively large amount of space somewhat decreased the
take-up rate in TB Simatupang by 3.5% QoQ to 89.2% as of 1Q
2015. Asking prices of strata-title space in this area rose by 13.8%
QoQ to IDR32.2 million/sq m for buildings charging in rupiah.
The influx of newly operating strata-title offices is one of the
causes for the price increase during the quarter. For buildings
charging in US dollars, the average asking price was USD3,500/
sq m.
150,000
100,000
Less absorption than projected QoQ will put pressure on asking

rents. This will likely cause a weakening of the average asking
rent, at least it will be relatively flat during 2015.
50,000
Cumulative Supply
2015YTD
2014
2013
2012
2011
2010
2009
2008
Cumulative Take-up
Pre-Committed Demand of Future Office for Sale in

the Outside CBD
2017F
2016F
2015F
50,000
100,000
150,000
Space Absorbed
200,000
Space Unabsorbed
250,000
sq m
15
Apartment Sector
remaining stock is distributed in South Jakarta, CBD area and

Central Jakarta at 21.1%, 15.7% and 13.2%, respectively, while
East Jakarta had a mere 6.2% of the total inventory.
Apartment for Strata-title

Supply
Commencing in 2015, the cumulative supply of apartment
units in Jakarta grew at a moderate pace. The apartment market
received 3,255 new units, up by 2.3% QoQ, from seven projects
comprising four brand new projects and three extension towers.
These 3,255 units, or 11% of the total projected 29,451 new units
that will be completed this year, are scattered in all areas of
Jakarta, except the CBD. Of the total supply in this quarter, 38%
is located in South Jakarta, while the remaining portions are
located in North Jakarta (25%), East Jakarta (22%), West Jakarta
(11%) and Central Jakarta (6%). Overall, with the addition from
newly-completed projects, the total existing stock of strata-title
apartments in Jakarta rose to 146,300 units. By location, the
non-prime areas (North Jakarta and West Jakarta) dominate the
market with 22.2% and 21.6% of the total stock, respectively. The
The first quarter of the year began with optimism among

developers as they launched several new apartment projects.
Compared to the same quarter last year, there were 7,276
newly-introduced and launched units, 115% higher than in the
same period last year. Demand for apartments in Jakarta has
been notably strong during the last three years, evidenced by
almost all new completed apartment projects achieving more
than a 90% sales rate. Apartment units are still perceived as an
investment tool as they provide capital gains of around 10 - 25%
(if bought at the initial offering) and rental yield expectations of
around 6 to 8% per year.
The reform of Indonesias fuel subsidy policy will have a positive
impact on the property sector as the government aims to allocate
the budget to more productive uses, such as improvements in
infrastructure. The acceleration of infrastructure projects will
expand the economy, in line with the governments target of a
5.5% GDP growth this year, an increase 0.5% from the growth in
2014.
List of Completed Projects During 1Q 2015

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

NAME OF DEVELOPMENT
LOCATION
REGION
EXPECTED
COMPLETION
TIME
ESTIMATED PRICE/
SQ M*
NO. OF
UNITS
REMARKS
South Hill
Jl. Denpasar Raya
CBD
2018
IDR37 - 39 million
611
Pre-sales
Green Pramuka (Nerine Tower)
Jl. Pramuka
Central Jakarta
2017
IDR16.7 million
1,000
Launched
Podomoro Park
Jl. I Gusti Ngurah Rai
East Jakarta
2018
IDR18.5 million
3,000
Introduced (NUP system **)
The Hamilton
Jl. Teuku Nyak Arief
South Jakarta
2017
IDR49.5 million
112
Introduced (NUP system**)
Pakubuwono Spring
Jl. Teuku Nyak Arief
South Jakarta
2018
IDR51 million
545
Launched
La Terrasse
Jl. Deplu Raya No.12
South Jakarta
2018
IDR37 million
111
Launched
Branz Simatupang (2 tower)
Jl. TB Simatupang
South Jakarta
2018
IDR28 million
381
Introduced
Synthesis Residence Kemang
Jl. Ampera Raya
South Jakarta
2018
IDR29.5 million
1,100
Introduced (NUP system**)
19 Avenue (Tower B)
Jl. Daan Mogot
West Jakarta
2017
IDR10.5 million
416
Launched
Notes:
*Price excludes 10% VAT
**NUP (Indonesian term for Nomor Urut Pemesanan) or also known as priority pass is a new marketing strategy commonly applied by reputable developers to gauge the interest
of potential buyer in the initial offering
16
Research & Forecast Report | 1Q 2015 | Apartment | Colliers International
As of 1Q 2015, there are 7,276 units at either newly-introduced

or newly-launched projects, which are mainly located in South
Jakarta, representing 53% of the total units. Among the districts
in South Jakarta, TB Simatupang remains in the spotlight as can
be seen by the growing number of office developments that drive
the growth of apartment development in the surrounding area.
The Distribution of Future Apartment Developments

in Several Regions of Jakarta
35,000
30,000
The supply of new apartment units during 2015 is projected to be

substantial, i.e. 29,451, should all projects be completed. All in
all, the total projected units that will come into the market from
2015 to 2018 will be 80,881 new units, mainly supplied in West
Jakarta with 23% of the total supply, followed by East Jakarta
and South Jakarta with 22 and 20%, respectively. Typically,
apartment development in West Jakarta is characterised by
massive unit projects targeting the middle-low income segment,
offering small units in order to make prices affordable. The units
of these apartment projects typically come with areas from 22
sq m for studio units to 70 - 80 sq m for 3-bedroom units. On
the other hand, East Jakarta will see abundant new projects in
the next two to three years, mainly coming from two projects, i.e.
Green Signature and Bassura City, which are located in Cawang
and Cipinang, respectively.
25,000
Units
20,000
15,000
10,000
5,000
0
2015F
2016F
2017F
2018F
CBD
Central Jakarta
South Jakarta
North Jakarta
East Jakarta
West Jakarta
New Supply Pipeline (2015 - 2019)

APARTMENT NAME
LOCATION
REGION
NO. OF UNITS
2015
The Grove (Empyreal + Masterpiece)
Jl. HR Rasuna Said
CBD
438
Ciputra World - Luxurious Raffles Residences
Jl. Prof Dr Satrio
CBD
64
Setiabudi Sky Garden (tower 1)
Jl. Karbela Selatan
CBD
426
Setiabudi Sky Garden (tower 2)
Jl. Karbela Selatan
CBD
160
Elpis Residence
Gunung Sahari
Central Jakarta
790
Capitol Park Apartment (Tower T)
Jl. Salemba Raya, Menteng
Central Jakarta
727
Capitol Park Apartment (Tower U)
Jl. Salemba Raya, Menteng
Central Jakarta
976
The Mansion at Dukuh Golf Residence (Aurora Tower)
Jl. Benyamin Sueb Kemayoran
Central Jakarta
522
The Mansion at Dukuh Golf Residence (BellaVista Tower)
Jl. Benyamin Sueb Kemayoran
Central Jakarta
612
The H Residence Kemayoran (Amethyst)
Jl. Rajawali Selatan
Central Jakarta
800
The Royal Springhill (Lotus Tower) (1Q)
Central Jakarta
192
The Royal Springhill (Bouvardia Tower)
Central Jakarta
120
Casablanca East Residence (2 Twr) + Tower Dallas
Jl. Pahlawan Revolusi
East Jakarta
1,904
Titanium Square (1Q)
Jalan Raya Bogor Kav. 27 Pasar Rebo
East Jakarta
725
The H Residence
MT Haryono
East Jakarta
383
Bassura City (Tower Flamboyan)
Jl. Basuki Rahmat
East Jakarta
1,000
Bassura City (Tower Edelweiss)
Jl. Basuki Rahmat
East Jakarta
1,000
Bassura City (Tower Dahlia)
Jl. Basuki Rahmat
East Jakarta
1,000
Bassura City (Tower Alamanda)
Jl. Basuki Rahmat
East Jakarta
600
Bassura City (Tower Geranium)
Jl. Basuki Rahmat
East Jakarta
900
Teluk Intan (Tower Saphire)
Jl. Teluk Gong
North Jakarta
1,100
Pluit Seaview (Tower Maldives)
Pluit
North Jakarta
940
Pluit Seaview (Tower Belize)
Pluit
North Jakarta
300
Callia Apartment
Jl. Perintis Kemerdekaan
North Jakarta
560
The Oak Tower (2 Towers)
Jl. Perintis Kemerdekaan
North Jakarta
821
continued
17
APARTMENT NAME
LOCATION
REGION
NO. OF UNITS
continued
Northern Ancol Residence (1Q)
Ancol
North Jakarta
800
Green Bay Pluit (Sea View)
Jl. Pluit Karang Ayu
North Jakarta
2,072
La Venue - South Tower (1Q)
Jl. Pasar Minggu
South Jakarta
341
The Royal Olive Residence (was El Medina) Tower I
Jl. Buncit Raya
South Jakarta
225
Senopati Penthouse
Jl. Senopati Kav 45
South Jakarta
63
Senopati Suites 2
Jl. Senopati
South Jakarta
81
LA City Apartment (Tower A)
Jl. Raya Lenteng Agung, Jagakarsa
South Jakarta
980
La Maison Barito (Tower 1)
Barito
South Jakarta
80
Botanica Apartment (3 Towers) (1Q)
Simprug, Kebayoran Baru
South Jakarta
626
Woodland Park (Trambesi tower) (1Q)
Jl. Kemukus No. 6, Fatahillah
South Jakarta
221
1 Park Avenue (3 Towers)
Jl. KHM Syafi'I Hadzami
South Jakarta
279
Nine Residence
Warung Buncit
South Jakarta
246
Providence Park
Jl. Kalimaya - Iskandar Muda
South Jakarta
114
Kencana Residence
Jl. Sultan Iskandar Muda
South Jakarta
173
Izzara Apartment (South and North Tower)
TB. Simatupang
South Jakarta
542
The Aspen Peak at Admiralty
Jl. Fatmawati
South Jakarta
644
Niffaro Apartment (Ebony Tower)
Jl. Kalibata Raya
South Jakarta
288
Grand Dhika Mansion Pejaten (Sector 1)
Jl. Siaga Raya
South Jakarta
Metro Park Residence
Kebon Jeruk
West Jakarta
1,451
St. Moritz (New Presidential Tower)
Jl. Puri Indah
West Jakarta
159
Satu8 Residence
Jl. Pilar Komp. Delta, Kedoya
West Jakarta
174
Belmont Residence (Tower Montblanc) (1Q)
Jl. Meruya Ilir
West Jakarta
350
The Nest Apartment
Jl. Raden Saleh Raya, Meruya Utara
West Jakarta
1,100
Green Palm Residence @ Puri
Jl. Kosambi
West Jakarta
1,000
19 Avenue Apartment 9 (Tower A)
Daan Mogot
West Jakarta
338
The Residence (CWJ 2)
Jl. Prov Dr Satrio Kav 6, Kuningan
CBD
The Orchad Satrio (CWJ 2)
Jl. Prov Dr Satrio Kav 6, Kuningan
CBD
349
Sudirman Suites
Jl. Sudirman
CBD
380
Gayanti City (2 Towers)
Jl. Gatot Subroto
CBD
318
T - Plaza Residence (Tower A)
Jl. Penjernihan I Kav.1 Pejompongan
Central Jakarta
307
Sentosa Residence
Cempaka Putih
Central Jakarta
687
Sudirman Hill Residence
Jl. Karet Pasar Baru
Central Jakarta
255
The Grreen Pramuka (Tower Orchid)
Jl. Jenderal Ahmad Yani
Central Jakarta
1,000
The Grreen Pramuka (Tower Penelope)
Central Jakarta
1,000
The Green Pramuka (Tower Scarlet)
Central Jakarta
1,000
Capitol Suites
Jl. Prapatan Raya
Central Jakarta
327
The Royal Springhill (Bulgari Tower)
Central Jakarta
192
Holland Village (Phase II)
Cempaka Putih
Central Jakarta
230
Signature Park Grande
Jl. MT. Haryono
East Jakarta
1,100
Bassura City (Tower Cattleya)
Jl. Basuki Rahmat
East Jakarta
600
East Park Apartment (Tower C)
Jl. KRT Radjiman
East Jakarta
550
Sentra Timur Residence (Tower Tosca)
Pulo Gebang
East Jakarta
133
Pluit Seaview (Tower Ibiza)
Pluit
North Jakarta
500
Pluit Seaview (Tower Bahama)
Pluit
North Jakarta
650
La Venue - North Tower
Jl. Pasar Minggu
South Jakarta
253
Kemang Village (The Bloomington)
Jl. P Antasari
South Jakarta
150
44
2016
119
continued
18
APARTMENT NAME
LOCATION
REGION
NO. OF UNITS
continuation
Senopati Suites 3
Jl. Senopati
South Jakarta
54
Pakubuwono Terrace Grand Tower
Kebayoran Lama
South Jakarta
435
District 8 (Tower Eternity)
Jl. Senopati
South Jakarta
400
District 8 (Tower Infinity)
Jl. Senopati
South Jakarta
280
Lexington Rersidence
Pondok Pinang
South Jakarta
275
Apartment Pejaten Park Residence
Jl. Warung Buncit Raya No.21
South Jakarta
560
Four Winds
Jl. Permata Hijau Raya No.1
South Jakarta
122
Bellevue Place
MT Haryono, Tebet
South Jakarta
240
Kebayoran Icon
Jl. Ciledug Raya
South Jakarta
256
Sapphire Residence
Lebak Bulus
South Jakarta
St Moritz (The New Ambassador Suite Tower)
Jl. Puri Indah Kembangan
West Jakarta
The Windsor (Tower II)
Jl. Puri Indah
West Jakarta
164
Gianetti Apartment
Jl. Kebon Jeruk Raya, Kemanggisan
West Jakarta
500
Gallery West
Jl. Panjang No 5
West Jakarta
280
Belmont Residence (TowerAthena)
Jl. Meruya Ilir
West Jakarta
193
Puri Mansion Apartment (Tower A)
Puri Mansion
West Jakarta
900
Madison Park
Tanjung Duren
West Jakarta
1,200
Veranda
Jl. Pesanggrahan Raya, Kembangan
West Jakarta
174
Domaine
Jl. Jend. Sudirman Kav 1
CBD
186
Verde Two (Tower East)
Jl. Rasuna Said
CBD
182
Anandamaya Residences (3 towers)
Jl. Jend Sudirman
CBD
500
Central 88 (2 Towers)
Jl. Trembesi, Kemayoran
Central Jakarta
612
Menteng Park
Jl. Cikini Raya No.79
Central Jakarta
756
Holland Village
Cempaka Putih
Central Jakarta
400
Royal Suites
Kemayoran
Central Jakarta
450
The Green Pramuka (Tower Nerine)
Central Jakarta
1,000
Green Signature Apartment
Jl. MT. Haryono
East Jakarta
800
Podomoro Park
Jl. I Gusti Ngurah Rai, Klender
East Jakarta
3,000
Bassura City (Tower Jasmine) 2 tower
Jl. Basuki Rahmat
East Jakarta
2,000
Bassura City (Tower Heliconia)
Jl. Basuki Rahmat
East Jakarta
700
La Terrasse
Jl. Deplu Raya No.12
South Jakarta
111
The Foresque
Pasar Minggu, Ragunan
South Jakarta
660
The Langham Residences
Senopati
South Jakarta
57
The Batik @ Pejaten
Jl. Siaga Raya
South Jakarta
200
La Foret Vivante
Jl. Limo, Permata Hijau
South Jakarta
253
Selatan 8 (Tower Sultan)
Kebayoran Lama
South Jakarta
336
The Hamilton
Jl. KHM Syafi'I Hadzami
South Jakarta
Puri Orchad (3 Tower)
Jl Raya Adicipta
West Jakarta
3,000
Maqna Residence
Jl. Meruya Ilir No. 88
West Jakarta
312
Vittoria Residence (3 tower)
Jl. Daan Mogot
West Jakarta
1,100
Wang Residence
Jl. Panjang No 18
West Jakarta
250
Taman Anggrek Residence (6 towers)
Tanjung Duren
West Jakarta
3,000
19 Avenue Apartment (Tower B)
Daan Mogot
West Jakarta
416
Regatta London Tower
Jl. Pantai Mutiara
North Jakarta
186
37
200
2017
112
continued
19
APARTMENT NAME
LOCATION
REGION
NO. OF UNITS
continuation
2018
Verde Two (Tower West)
Jl. Rasuna Said
CBD
152
Lavie
Jl. Denpasar Raya
CBD
320
South Hill
Jl. Denpasar Raya
CBD
611
Le' Parc
Jl. Thamrin
CBD
100
Regent Residences (tower 1)
Semanggi
CBD
100
Bassura City (Jasmine Tower)
Basuki Rahmat
East Jakarta
400
Bassura City (Haleconia Tower)
Basuki Rahmat
East Jakarta
400
Core Sky Residence
Pulo Gebang
East Jakarta
282
Sahid Garden Residence
Ciracas
East Jakarta
476
Gold Coast Apartment (Atlantic Tower)
Pantai Indah Kapuk
North Jakarta
568
Regatta Apartment (Tower New York)
Pantai Mutiara
North Jakarta
186
Sedayu City (Tower Berlin)
Jl. Pegangsaan Dua Raya
North Jakarta
912
The Kensington Royal Suites (4 Tower)
Kelapa Gading
North Jakarta
790
Jaya Ancol Seafront - Oceana Tower
Pademangan, Ancol
North Jakarta
524
Casa Grande Residence 2 (Tower Angelo)
Jl. Casablanca
South Jakarta
350
Casa Grande Residence 2 (Tower Bella)
Jl. Casablanca
South Jakarta
350
Casa Grande Residence 2 (Tower Milano)
Jl. Casablanca
South Jakarta
350
Pondok Indah Residences (3 Towers)
Pondok Indah
South Jakarta
880
Selatan 8 (Tower Prabu)
Jl. Raya Ulujami
South Jakarta
344
One Otium Residence
Jl. Pangeran Antasari No.8
South Jakarta
160
45 Antasari (2 Tower)
Antasari
South Jakarta
1,924
Arzuria Apartment
Jl. Tendean
South Jakarta
210
Pakubuwono Spring (2 towers)
Jl. Teuku Nyak Arief No.9
South Jakarta
545
Branz Simatupang (2 tower)
TB. Simatupang
South Jakarta
381
Synthesis Residence Kemang
Jl. Ampera Raya
South Jakarta
1,100
Ciputra International Puri Indah (Tower Amsterdam)
Puri Indah
West Jakarta
412
Grand Madison
Tanjung Duren
West Jakarta
300
Citra Lake Suites (Tower Rosewood)
Jl. Raya Kresek
West Jakarta
104
Citra Lake Suites (Tower Greenwood)
Jl. Raya Kresek
West Jakarta
126
Citra Lake Suites (Tower Oakwood)
Jl. Raya Kresek
West Jakarta
117
Citra Lake Suites (Tower Sherwood)
Jl. Raya Kresek
West Jakarta
122
Apartemen Taman Permata Buana
Taman Permata Buana
West Jakarta
550
20
Demand
Following a downturn trend in the previous quarter, the sales
of strata-title apartments, particularly in the primary market,
continued to record slow absorption. This slow market situation
was highlighted by low GDP growth and a rupiah depreciation
against the US dollar, which affected the overall economy of
Indonesia, particularly by lowering the purchasing power of the
middle class. The weakening local currency against the US dollar
has made construction costs more expensive, particularly for
upper- to luxury-class apartments, as 30 to 40% of the material
components are imported goods. Furthermore, the abundance
of supply puts the overall market in a tough situation since there
are about 80,000 units (during 2015 - 2018) being marketed. In
view of this, we expect to see a further softening in the strata-title
apartment market throughout 2015.
Take-up Rates Performance of Existing and Under

Construction Projects
AVERAGE TAKE-UP RATES
4Q 2014
1Q 2015
QoQ
Existing Projects
95.6%
95.7%
0.10%
Pre-Sales rate of Under Construction

Projects
72.1%
68.4%
-3.70%
87.00%
85.50%
-1.50%
Average
Take-up Rates Performance of Existing Projects in

Three Major Areas
TAKE-UP EXISTING PROJECTS
CBD
4Q 2014
99.3%
1Q 2015
QoQ
99.3%
0.0%
South Jakarta
97.9%
97.6%
-0.3%
Non-Prime area
93.7%
94.0%
0.3%
As of 1Q 2015, the overall average take-up rate for strata-title

apartments (both existing and under-construction projects) in
Jakarta was 85.5%, down slightly from the previous quarters
87%. The table above shows that existing apartment projects
in South Jakarta experienced a decrease in the take-up rates
from the previous quarter, while the non-prime area posted an
increase of 0.3% from the previous quarter but experienced a
drop for the under-construction projects. On the other hand, the
take-up rates for existing projects in the CBD apartment market
remain the same as the previous quarter, at 99.3%.
Take-up Rates Performance of Future Projects in

Three Major Areas
TAKE-UP EXISTING PROJECTS
4Q 2014
1Q 2015
QoQ
CBD
88.3%
83.9%
-4.4%
South Jakarta
78.0%
68.6%
-9.4%
Non-Prime area
69.4%
67.1%
-2.3%
The pre-sales activity of under-construction projects underwent

a declining trend in all regions of Jakarta. The take-up rate in
South Jakarta experienced the lowest drop, mostly due to the
abundant supply of newly-introduced or launched projects in
the last three years. Similar to South Jakarta, the pre-sales rate
in the CBD area also experienced a declining sales rate because
most of the projects saw slower absorption than in 2014. The
sales performance of under-construction projects is very much
affected by the influx of new projects. For example, one new
middle-upper class project entering the pre-sales stage put
downward pressure on the overall take-up rate during January
- March 2015. Similarly, the continued influx of new projects in
the non-prime area (including Central, North, West and East
Jakarta) has resulted in a downswing of the take-up rate by 2.3%
compared to the previous quarter.
Asking Price
Despite the lowering sales performance during the quarter,
average asking prices for strata-title apartments continued to
demonstrate an upward trend. As of 1Q 2015, the average asking
price of apartments in Jakarta rose by 3.7% QoQ to IDR28.7
million/sq m. Based on location, the new apartments in nonprime locations posted the highest price increase, followed by
South Jakarta and the CBD area. Benefiting from a relatively
lower price compared to South Jakarta and the CBD area, some
projects in non-prime areas are enjoying a good take-up rate and
that has helped the average price to improve. On the other hand,
the market perceives that the current prices of apartments in the
CBD have reached a peak.
Average Asking Price of Apartment per Sq m

4Q 2014
1Q 2015
CBD
ASKING PRICE/SQ M
43,472,842
44,135,684
1.5%
South Jakarta
32,033,471
32,713,013
2.1%
Non-Prime area
20,764,022
21,212,815
2.2%
The pace of apartment prices in 2014 slowed compared to the

aggressive price growth in 2011 - 2013. The slowdown is in line
with the governments expectations, as they are very concerned
with the persistently soaring prices. This trend is expected to
continue throughout 2015 as the government is planning to
further tighten the real estate market by imposing taxes on a
broader range of the property segment.
Bank Indonesias target to curb the growth of property prices by
tightening the LTV (Loan to Value) regulation has shown results.
As on the chart below, the average QoQ changes of apartment
prices in 2014 has been relatively slower than the strong growth
since 2012 - 2013. During 2011 - 2013, the average QoQ changes
in apartment prices increased by 3.34%.
21
QoQ
QoQ Changes of Average Asking Prices of Apartment

in Jakarta
10%
Apartment For Lease

Supply
After Ascott Kuningan became available in the last quarter, there
was no new supply of apartments for lease during 1Q 2015.
As such, the total supply of both serviced and non-serviced
apartments in Jakarta remained at 8,519 units. The majority of
apartments for lease in Jakarta are designed to meet expatriate
standards with spacious sizes, and therefore these projects are
mainly found in the CBD and South Jakarta for two main reasons,
i.e. the locations are in close proximity to the commercial area
and are still in the catchment area of reputable international
schools.
9%
8%
7%
6%
5%
4%
3%
The Distribution of Apartment for Lease by Area
2%
1%
0%
2011
2012
2013
2014
2015YTD
Non-prime
21%
CBD
44%
The trend of slowing demand is likely to persist in the upcoming

quarters. To anticipate this, developers continue to offer
financing incentives like cash instalment payments and in some
cases, buyers are not required to make a down payment. This
payment scheme has become a preferable method of paying
since it does not require bank approval and offers flexibility to
manage the cash flow. Furthermore, developers, especially those
having strong working capital, are confident in offering longer
cash instalments for up to 60 months.
Payment Method
Apartment
Composition
Hard Cash
16%
in
Purchasing
Mortgage
26%
South Jakarta
35%
The apartment for lease market in Jakarta was mainly dominated

by two global brands of serviced apartment operator, i.e. The
Ascott Limited and Frasers Hospitality. The Ascott Limited has
three brands in operation, Ascott Residence, Somerset and
Citadines. Frasers Hospitality has only Fraser Residence but in
the upcoming years, Fraser Hospitality will have Fraser Suites
(Ciputra World II), Fraser Place (Setiabudi Sky Garden) and
Capri by Fraser.
A strong operator brand for serviced apartments is a crucial
factor for differentiation from other products and to guarantee a
global service level. Several major serviced apartment operators
have multiple brands to serve different market segments.
Cash
Installment
58%
22
List of Serviced Apartments Managed by Ascott and Frasers

NAME OF DEVELOPMENT
YEAR OF
OPERATION
OPERATOR
LOCATION
TYPE
The Ascott Residence
1995
Ascott Limited
Kebon Kacang
Serviced Apartment
Somerset Grand Citra
1996
Ascott Limited
Satrio
Serviced Apartment
Countrywoods Residence
1996
Ascott Limited
WR Supratman, Ciputat
Serviced Apartment
Somerset Berlian
2006
Ascott Limited
Permata Hijau
Serviced Apartment
Fraser Residence Sudirman
2011
Frasers Hospitality
Setiabudi
Serviced Apartment
Citadines Rasuna Jakarta
2013
Ascott Limited
Rasuna Said
Condotel
Fraser Residence Menteng
2014
Frasers Hospitality
Menteng
Serviced Apartment
Ascott Kuningan Jakarta
2014
Ascott Limited
Satrio
Serviced Apartment
Fraser Place at Setiabudi Sky Garden
2015
Frasers Hospitality
Karbela Selatan
Serviced Apartment
Somerset Kencana Jakarta
2015
Ascott Limited
KHM Syafi'I Hadzami
Condotel
Fraser Suites at Ciputra World Jakarta 2
2016
Frasers Hospitality
Satrio
Serviced Apartment
Fraser Suites Kebon Melati
2018
Frasers Hospitality
Kebon Melati
Serviced Apartment
Capri by Fraser
2018
Frasers Hospitality
TB Simatupang
Condotel
Source: Colliers International Indonesia - Research and Fraser Cachet (Issue 18)
Occupancy
The apartment for lease market experienced a minor occupancy
decrease of 0.4% QoQ to 75.3%. Leasing activity during the
initial period of 2015 was relatively stagnant highlighted with
come and go tenants and the absence of new enquiries from
expatriates. This figure also marked a 0.9% decrease compared
to the same quarter in 2014. Moreover, it should be noted that
a large number of new middle-upper to upper class strata-title
apartments is likely to put downward pressure on occupancy
levels of apartments for lease. Generally, individually owned
apartment units are offered furnished, which meets expatriate
standards and taste.
The QoQ Occupancy Performance for Non-Serviced

Apartment
AREA
CBD
4Q 2015
84.5%
South Jakarta
Non-Prime area
1Q 2015
0.1%
77.1%
76.7%
-0.4%
74.9%
74.8%
-0.1%
The QoQ Occupancy Performance for Serviced

Apartment
4Q 2014
1Q 2015
QoQ change
CBD
78.7%
76.1%
-2.6%
South Jakarta
74.6%
75.5%
0.9%
Non-Prime area
51.8%
53.4%
1.6%
To cope with this situation, some apartments for lease (both

serviced and non-serviced) offered more flexible leasing terms
and payment to entice tenants, allowing for short-term leasing.
Previously, the apartments for lease require a minimum lease
term of six months paid in advance. Recently, landlords are
offering monthly accommodation that can be paid monthly.
QoQ change
84.6%
AREA
New enquiries were reportedly limited, with only a few

apartments in South Jakarta enjoying an increase in occupancy
during the reviewed quarter. Softening demand during this
quarter was mostly limited to inquiries from western expatriates.
The recent plunge in oil prices has impacted the overall
sluggish performance of apartments for lease in Jakarta as some
companies related to the oil business reduced the number of
their expatriates working in Jakarta. For some years, the oil and
gas industry has consistently driven the leasing market, mainly
for western expatriates.
Rental Rates
The average monthly rent of apartments for lease in Jakarta
persisted in its decline, falling 2% QoQ to USD21.8/sq m/
month. The overall downward trend in the rental rate was
triggered by sluggish demand in the previous year, which caused
management adjust rents to maintain the occupancy level.
Several apartments for lease are offered in local currency,
however with the weakening rupiah against the US dollar and
that the overall rental rates presented here are in US dollars, the
overall figure dropped somewhat. During the tenants market
in the coming period, rents are expected to soften during 2015
and this will characterise the whole leasing market.
23 Research & Forecast Report | 1Q 2015 | Apartment | Colliers International
Average Rental Rates of Apartment for Lease
Concluding Thought
USD 30.00
The government plans to introduce a new scheme of luxury

goods tax on residential property would adversely impact
property sales, particularly in the middle segment. Previously, a
5% luxury tax was expected to be imposed on property valued
at IDR10 billion but a revision is pending to reduce this to IDR2
billion. The planned revisions would encompass a much wider
range of property sales, as a IDR2 billion apartment in Jakarta is
currently considered as middle to middle-upper segment, which
comprises about 23% of the total existing apartments. On the
other hand, it is unlikely to have a dramatic impact on the upper
to luxury class apartments, since this kind of buyer will pay for a
high-quality product and is not relatively price sensitive.
USD 27.00
Rental Rates/sq m/month
USD 24.00
USD 21.00
USD 18.00
USD 15.00
USD 12.00
USD 9.00
USD 6.00
USD 3.00
CBD
2015YTD
2014
2013
2012
2011
2010
2009
USD 0.00
South Jakarta (inc. Non-Prime Area)
As mentioned above, some serviced apartments in the CBD

raised their rental rates by 3 to 5%. One serviced apartment
building adjusted the rental rate quite significantly and thus
impacted the drop of overall rental rates in the CBD. On the other
hand, apartments for lease in South Jakarta (including nonprime area), which mostly consist of non-serviced apartments,
kept the rental rate the same as in the previous quarter. In
addition, since many non-serviced apartments quote the rental
rate in rupiah, the strengthening US dollar impacted the overall
rental rates in US dollars.
The apartments for lease market is expected to remain quiet

in the upcoming quarters due to the current issues regarding
an additional regulation that will require foreigners to master
the Indonesian language before they are able to obtain a work
permit. This regulation may hamper the inflow of a number of
expatriates coming to Indonesia. In contrast, the establishment
of the ASEAN Economic Community should create a business
momentum that will gradually improve the Jakarta apartments
for lease market.
Average Rental Rates of Apartment for Lease

AREA
4Q 2014
1Q 2015
QoQ change
CBD
USD28.58
USD27.81
-2.7%
South Jakarta (including

non-prime area)
USD15.94
USD15.83
-0.7%
24
RETAIL SECTOR
Existing and Future Retail Space in Jakarta

West Jakarta
Supply
East Jakarta
Jakarta
North Jakarta
Jakarta Shopping Center Cumulative Supply
South Jakarta
5,500,000
Central Jakarta
5,000,000
4,500,000
CBD
4,000,000
200,000 400,000 600,000 800,000 1,000,000

sq m
2,500,000
Existing Supply up to 2014
2,000,000
1,500,000
Future Supply in 2015 - 2018
4,500,000
4,000,000
3,500,000
3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
500,000
For Sale
For Lease
25
Research & Forecast Report | 1Q 2015 | Retail | Colliers International
2018F
2017F
2016F
Experienced developers are still the main contributors of

additional supply of shopping centres in Jakarta. Agung
Podomoro Land (APL) and Pondok Indah Group will become
active contributors of new shopping centres in Jakarta. They will
provide around 48% of the total additional supply during 2015 2018.
5,500,000
5,000,000
2015F
Despite the limited number, Jakarta is expected to see more

shopping centres in operation after 2016. It is projected that there
will be around 500,000 sq m of new retail space by 2018. Other
than shopping centres that are currently under construction, at
least five future shopping centres, i.e. Mal Puri Indah 2, Pondok
Indah Mal 3, AEON Cakung, Shopping Mall at Podomoro Park
and Holland Village Mall are preparing to start construction in
2015. Some of those have confirmed that they will break ground
within the first half of 2015.
Jakarta Cumulative Supply Based on Marketing

Scheme
2015YTD
For the last five years, the growth of retail space in Jakarta has
been slack and this will likely continue in 2015 - 2016 when there
will be less than 100,000 sq m of additional supply contributed by
three shopping centres. With no new shopping centres operating
as of 1Q 2015, the cumulative supply of retail space in shopping
centres in Jakarta remained as it was in 2014 at 4.43 million sq m.
2014
Pondok Indah Group plans to build two new shopping centres,

i.e. Puri Indah Mal 2 in West Jakarta and Pondok Indah Mal 3
South Jakarta. Both malls are expansions of existing projects.
Being announced several years ago, these projects will start to be
developed in 2015.
2013
2018F
2017F
2016F
2015F
2015YTD
2014
Annual Supply
2012
Existing Supply
2013
2012
2011
2010
While proceeding with the construction of New Harco Plaza,

Agung Podomoro is preparing to launch Podomoro Park in
Buaran, East Jakarta. Similar to their previous project (Podomoro
City in West Jakarta), the shopping mall in Podomoro Park will
be part of an integrated development together with apartments.
2010
500,000
sq m
1,000,000
2011
sq m
3,500,000
3,000,000
Greater Jakarta Area (BoDeTaBek Bogor, Depok, Tangerang, Bekasi)
Existing and Future Retail Space in BoDeTaBek
BoDeTaBek Shopping Center Cumulative Supply
Bekasi
3,000,000
Tangerang
2,500,000
sq m
2,000,000
Depok
1,500,000
Bogor
1,000,000
500,000
300,000
600,000
2018F
2017F
2016F
2015F
2015YTD
2014
Annual Supply
AEON Mall BSD seemingly will be the sole shopping centre in

greater Jakarta in 2015. Construction progress on it has been
quite significant and it is ready to open as the first AEON Mall in
Indonesia around mid-2015.
A joint venture of AEON with a local developer will build 20
shopping malls in Indonesia over the next eight years. Besides
BSD City, AEON will develop more malls in the greater Jakarta
area like Kota Deltamas in Bekasi Regency, Bogor and Sentul.
It is expected that those developments will be completed and
opened in 2018.
Without any new shopping centres being introduced this quarter,
the cumulative supply was identical to the previous quarter at
2.91 million sq m. It is expected that the greater Jakarta retail
market will see more new space than Jakarta with a projected
600,000 sq m of additional supply coming into the market by
2018. However, as of 1Q 2015, construction progress is only seen
at retail centres that are expected to begin operations in 2015 2016. This only represents 25% of the total additional supply in
2015 - 2018.
Larger additional supply in 2017 - 2018 will be contributed
mostly by shopping centres located adjacent to or integrated into
residences, both vertical and landed houses.
1,200,000
sq m
Future Supply in 2015 - 2018
Overall, Jakarta and the greater area is anticipating additional 27

new shopping centres that will bring 1.1 million sq m of retail
space by 2018. Bekasi and Tangerang will be the two largest
contributors with around 500,000 sq m of projected additional
retail space at 10 shopping centres by 2018. These 10 projected
shopping centres will bring the cumulative supply in each of
those areas to more than a million sq m by 2018.
In addition to Bekasi, which will have seven future shopping
centres, Bogor will also see more additional retail space of
around 100,000 sq m by 2018, as they are only neighbourhood
category shopping centres.
BoDeTaBek Cumulative Supply Based on Marketing

Scheme
3,000,000
2,500,000
2,000,000
sq m
Existing Supply
2013
2012
2011
2010
Existing Supply up to 2014
900,000
1,500,000
1,000,000
500,000
For Sale
For Lease
26
2018F
2017F
2016F
2015F
2015YTD
2014
2013
2012
2011
2010
Despite the lower numbers, Tangerang will see larger additional

supply than Bogor, mostly due to the fact that future shopping
centres in Tangerang are regional shopping centres larger than
30,000 sq m.
In Jakarta, three regions including Central, South and West

Jakarta are areas actively contributing new shopping centres.
West Jakarta will be the largest contributor by providing 150,000
sq m of additional supply by 2018.
New Supply Pipeline

SHOPPING CENTERS
DEVELOPER
LOCATION
REGION
NLA (SQ M)
STATUS
Jakarta
2015
Pantai Indah Kapuk Mall
Agung Sedayu
Pantai Indah Kapuk
North Jakarta
30,000 Under Construction
Shopping Mall @ Pancoran
Agung Podomoro
Pancoran
South Jakarta
Agung Podomoro
Slipi
West Jakarta
Mal Puri Indah 2
Pondok Indah Group
Puri Indah
West Jakarta
50,000 In Planning
Grand Cipulir
Priamanaya
Cipulir
South Jakarta
30,000 In Planning
Holland Vilage Mall
Lippo Group
Cempaka Putih
Central Jakarta
40,000 In Planning
New Harco Plaza
Agung Podomoro
Glodok
West Jakarta
Mall @ Green Pramuka City
Duta Paramindo Sejahtera
Pramuka
North Jakarta
30,000 In Planning
Pondok Indah Mall 3
Pondok Indah Group
Pondok Indah
South Jakarta
60,000 In Planning
Mall at The City Centre
Kencana Graha Global
Mas Mansyur
Central Jakarta
65,000 In Planning
Shopping Mall at Podomoro Park
Agung Podomoro
Buaran
East Jakarta
40,000 In Planning
AEON Mall Garden City
AEON & Sinarmas
Cakung
East Jakarta
90,000 In Planning
AEON
Serpong
Tangerang
Bekasi Trade Centre 2
Gapura Prima
Bulak Kapal
Bekasi
Metropolitan Mall Cileungsi
Metropolitan Land
Cileungsi
Bogor
Vivo Sentul Lifestyle
Megapolitan
Cibinong
Bogor
30,000 In Planning
Vivo Sentul Trademall
Megapolitan
Cibinong
Bogor
13,000 In Planning
Living World Jababeka
Kawan Lama
Jababeka
Bekasi
18,000 In Planning
Plaza Indonesia Jababeka
Plaza Indonesia
Jababeka
Bekasi
20,000 In Planning
Hollywood Central
Graha Buana Cikarang
Cikarang
Bekasi
25,000 In Planning
Embarcadero
Lippo Group
Bintaro
Tangerang
40,000 In Planning
Grand Dhika City Mall
Adhi Persada Property
Bekasi
Bekasi
2016
Neo SOHO Mall (Podomoro City)
2017
2018
BoDeTaBek
2015
AEON Mall BSD
2016
2017
continued
27 Research & Forecast Report | 1Q 2015 | Retail | Colliers International
SHOPPING CENTERS
DEVELOPER
LOCATION
REGION
NLA (SQ M)
STATUS
2018
AEON Mall Deltamas
AEON
Deltamas
Bekasi
90,000 In Planning
AEON Mall Bogor
AEON
Cibinong
Bogor
20,000 In Planning
AEON Mall Sentul
AEON
Sentul
Bogor
15,000 In Planning
Pesona Square
Menara Depok
Depok
Depok
30,000 In Planning
Kota Harapan Indah
Hasana Dharma Permai
Bekasi
Bekasi
51,000 In Planning
Lippo Grand Mall
Lippo Group
Karawaci
Tangerang
120,000 In Planning
Demand and Occupancy

Since the second half of 2014, the occupancy rate of shopping
centres in Jakarta continues to increase QoQ. As of 1Q 2015,
several home furnishing and fashion retailers contributed to
increase the occupancy to 86.8%. Jysk and H&M are foreign
retailers that have entered the Jakarta market around 2013 2014. Jysk, a Danish retail chain selling household goods such
as mattresses, furniture and interiors, will be very expansive in
opening new outlets in 2015. This retailer opened three stores,
two of which are in Jakarta. H&M, will also open more stores in
Jakarta. Later, the Sweden-based retailer will open a store at a
mall in Pluit, North Jakarta.
The projected occupancy of shopping centres in Jakarta is
expected to increase at least until the next quarter. Some
tenants like home furnishings, fashion, department store and
supermarket seemingly are in the pipeline to open new stores.
When these pre-committed tenants open, retail space in Jakarta
will become limited.
Cumulative Supply, Demand and Occupancy in

Jakarta
3,500,000
100%
90%
3,000,000
80%
sq m
2,500,000
70%
60%
2,000,000
50%
1,500,000
40%
30%
1,000,000
20%
500,000
10%
0%
2010
Space Absorbed
2012
Vacant Space
2014
Occupancy
In 2014, quite a few shopping centres had large vacant spaces

due to their transformation by upgrading tenancy layouts and
faades. Apart from that, Jakarta also witnessed some dying malls.
With poor performance at these malls, some tenants anticipate
pulling out due to lower numbers of visitor and low transaction
volume. The decreasing performance of those shopping centres
will lead to a weakening occupancy of the overall Jakarta area.
Landlords should anticipate this and look for a way to attract
crowds to their malls.
Poorer performance was also recorded at middle to middle
low class shopping centres that are categorised as trade malls.
Occupancy levels at this class of shopping centres during 2014
continued to weaken. However, as of 1Q 2015, the occupancy at
middle class shopping centres started climbing while at middlelow shopping centres it continued to decline.
Conversely, upper class, including premium, malls maintained
a high level of average occupancy. Most shopping centres
recorded new space absorption from 500 to 2,000 sq m that were
taken by tenants, raising the occupancy of upper class shopping
centres to 91.2% as of 1Q 2015.
Based on area (CBD and Outside CBD), the occupancy of
shopping centres in the CBD was flat at 92% since the previous
year. With no additional supply for at least three years ahead,
tenant re-layout is the mostly activity found at shopping centres
in the CBD. A renewal tenancy list is one way for landlords to
attract a lot of visitors and maintain high occupancy rates.
Currently, a luxury mall around Thamrin made small changes
to their layout by relocating tenants from eX Plaza (a mall that
stopped operating in the middle of 2014). To maintain the
prestige, this mall had to select potential tenants to occupy the
space mostly on the top floor. Another mall in Thamrin also did
a re-layout due to the opening of a new department store, while
a mall in South Jakarta is also discussing refreshing their tenancy
mix.
After the declining trend in 2014, the average occupancy in the
outside CBD climbed moderately QoQ to 84.6% as of 1Q 2015.
On the contrary, South Jakarta saw a decreasing occupancy QoQ
due to a large vacant space available at a shopping centre in the
Cilandak area. This mall is in negotiations with some food and
beverage stores to occupy the vacant space.
28
The performance of newly operating shopping centres in 2013 2014 also helped move occupancy upwards in North, East and
West Jakarta. As of 1Q 2015, the occupancy in North and East
Jakarta were 83.7 and 87.4%, respectively. West Jakarta recorded
lower occupancy than those two areas. The opening of stores at

both newly operating and existing shopping centres maintained
the occupancy in West Jakarta at 80.9%.
List of New Tenants (of more than 1,000 sq m) during 2015 in Jakarta
NAME OF TENANT
TYPE OF RETAILER
OPEN AT
OPENING TIME
Jysk
Home Furnishing
Kuningan City
March
Jysk
Home Furnishing
Pejaten Village
March
XXI
Entertainment
Lippo Mall Puri
March
H&M
Fashion
Emporium
April
Matahari
Dept. Store
Pasaraya
June
H&M
Fashion
Lippo Mall Puri
June
Uniqlo
Fashion
PIK Mall
July
Lotte Mart
Supermarket
PIK Mall
July
Informa
Home Furnishing
PIK Mall
July
Ranch Market
Supermarket
PIK Mall
July
Golds Gym
Entertainment
Dharmawangsa Square
July
Debenhams
Dept. Store
Lippo Mall Puri
July
Ace Hardware
Home Furnishing
PIK Mall
October
Ace Hardware
Home Furnishing
Mall of Indonesia
November
Annual Supply and Demand in Jakarta
Cumulative Supply, Demand and Occupancy in

BoDeTaBek
200,000
2,000,000
100%
160,000
90%
70%
1,200,000
80,000
60%
50%
800,000
40,000
40%
30%
20%
400,000
Annual Supply
10%
2015YTD
2014
2013
2012
2011
2010
The performance of some shopping centres that operated in

2013 - 2014 also had a positive good impact on the occupancy
in greater Jakarta area, which climbed by 1.6% QoQ to 83.4% as
of 1Q 2015. Some committed tenants opened their stores after
those malls had been operating for two years. Similar to Jakarta,
home furnishing retailers were a major contributor which
helped maintain the occupancy in greater Jakarta high since
the second half of 2014. Jysk, Pongs, Informa and Ace Hardware
have opened progressively as of 1Q 2015 at shopping centres in
Depok and Tangerang.
0%
2010
Annual Demand
29
80%
sq m
sq m
1,600,000
120,000
Space Absorbed
2012
Vacant Space
2014
Occupancy
AEON Mall will be the sole shopping centre operating in 2015.

AEON Mall is expected to lure visitors due to its Japanese
mall concepts that are different from other operating malls
It is confirmed that and AEON own brand supermarket and
department store will occupy this mall, which is projected to
officially open in 2Q 2015.
Annual Supply and Demand in BoDeTaBek
Occupancy Based on Region in BoDeTaBek

100%
200,000
90%
160,000
80%
70%
sq m
60%
50%
120,000
80,000
40%
30%
40,000
20%
10%
Depok
Tangerang
2015YTD
Bekasi
Annual Supply
2014
2014
2013
2013
2015YTD
Bogor
2012
2012
2011
2010
2010
2011
0%
Annual Demand
Committed Tenant in Future Shopping Centres

NAME OF SHOPPING CENTERS
PROJECTED COMPLETION
LOCATION
RETAILERS
Jysk
Home Furnishing
Margo City
February
Ace Hardware
Home Furnishing
Bintaro XChange
May
XXI
Entertainment
Aeon Mall
June
H&M
Fashion
Aeon Mall
June
Uniqlo
Fashion
Aeon Mall
June
Informa
Home Furnishing
Bintaro XChange
May
Ace Hardware
Home Furnishing
BTC City (BTC 2)
2016
Informa
Home Furnishing
BTC City (BTC 2)
2016
List of New Tenant of More Than 1,000 sq m During 2015 and 2016 in Jakarta and BoDeTaBek
PROJECTED
COMPLETION
LOCATION
PIK Mall
2015
Kapuk, North Jakarta
Blitz Megaplex, Muji, Gold Gym, Lotte Mart, Ace Hardware, Fun World, Ranch Market
Neo Soho Mall
2016
Slipi, West Jakarta
Central Department Store
Aeon Mall
2015
BSD City, Tangerang
Jysk, Aeon Supermarket, Aeon Department Store, H&M, Uniqlo
Bekasi Trade Center 2
2016
Bulak Kapal, Bekasi
Hypermart, Ace Hardware
Metropolitan Mall Cileungsi
2016
Cileungsi, Bekasi
Matahari, Gramedia, XXI
SHOPPING CENTERS
RETAILERS
Jakarta
BoDeTaBek
30
Space Absorption in the Future Shopping Centers

in BoDeTaBek
in Jakarta
2018F
2018F
2017F
2017F
2016F
2016F
2015F
2015F
2014
2014
60,000
120,000
Absorbed
180,000
240,000
sq m
Vacant Space
80,000
160,000
Absorbed
240,000
Vacant Space
320,000
sq m
Based on committed demand, future shopping centres in 2015 2016 both in Jakarta and the greater Jakarta area have been 50%
absorbed as of 1Q 2015. Some committed tenants are ready to
open at shopping centres that are projected to begin operating
in 2015 - 2016.
Average Asking Rents and Service

Charges
Jakarta
Asking Base Rent (Sq m/month) Based on Class
IDR 1,000,000
Most shopping centres in Jakarta saw a similar range of asking

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

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

Location
IDR 600,000
IDR 500,000
IDR 400,000
IDR 200,000
IDR 300,000
IDR 200,000
IDR 160,000
IDR 100,000
IDR 0
2010
2011
2013
2012
CBD
2014
2015YTD
IDR 120,000
Outside CBD
IDR 80,000
Since electricity tariffs and minimum wages increased in 2014,

the average service charge surpassed IDR100,000/sq m/month.
As of 1Q 2015, service charges at shopping centre in Jakarta
were IDR105,005/sq m/month, growing 9.4% YoY. Upper class
shopping centres had a rapid increase in service charges, to
IDR148,008/sq m/month as of 1Q 2015. Six upper class malls in
Jakarta have adjusted their service charges upward in the range
of IDR150,000 - 230,000/sq m/month as of 1Q 2015.
Average Service Charge in Jakarta Based on Class

IDR 200,000
IDR 40,000
IDR 0
2010
2011
2012
2013
CBD
2014
2015YTD
Outside CBD
BoDeTaBek
Average Base Rent in BoDeTaBek
IDR 400,000
IDR 160,000
IDR 360,000
IDR 320,000
IDR 120,000
IDR 280,000
IDR 240,000
IDR 80,000
IDR 200,000
IDR 160,000
IDR 40,000
IDR 120,000
IDR 80,000
IDR 0
2010
Upper Class
2011
2012
2013
Middle Low
2014
2015YTD
Average
IDR 40,000
IDR 0
2010
Bogor
2011
Depok
2012
2013
Tangerang
32
2014
2015YTD
Bekasi
In greater Jakarta, with a range of IDR200,000 to 300,000/sq m/

month, the average asking base rent was IDR315,898/sq m/
month as of 1Q 2015. It grew 4.4% YoY. The average base rent of
shopping centres in Tangerang was the highest at IDR364,443/
sq m/month, while in Depok it was the lowest at IDR249,113/sq
m/month.
Concluding Thoughts
The projected asking base rent in greater Jakarta is expected to

increase in 2015. Some shopping centres that achieved high
occupancy rates still maintain base rents similar to the previous
year. With limited vacant space, the possibility of adjusting
asking base rents will be high in 2015.
Jakarta is still projected as a potential market for foreign retailers.

However, there is inadequate vacant space in the middle to
upper class mall particularly in the CBD. Several shopping
centers mitigate such situation by rearranging the tenancy mix
and selecting tenants with the capacity to attract crowd and lift
malls performance.
Average Service Charge in BoDeTaBek Based on

Region
Jakarta has to avoid a saturated situation of shopping centres

in terms of tenancy mix and mall atmosphere. Re-layout and
bringing in new tenants brings a fresh concept that is expected
to attract more visitors to shop.
IDR 120,000
IDR 100,000
IDR 80,000
IDR 60,000
IDR 40,000
IDR 20,000
IDR 0
2010
Bogor
2011
Depok
2013
2012
Tangerang
2014
2015YTD
Bekasi
The average service charge at shopping centres in greater Jakarta

was in the range of IDR70,000 - 80,000/sq m/month. The average
service charge in greater Jakarta was IDR79,947/sq m/month,
lower by 25% compared to that in Jakarta. Based on region, Bekasi
and Tangerang had the highest service charges at IDR85,052 and
82,449/sq m/month, respectively.
Five shopping centres, two in Tangerang, have adjusted their
service charge to between IDR100,000 and 125,000/sq m/month.
The highest service charge was recorded by two shopping centres
located in Bogor and Tangerang.
Hotel Sector
Cumulative Supply of Star-Rated Hotel Rooms in

Jakarta
14,000
Star-Rated Hotel
12,000
8,000
6,000
4,000
2,000
60
50
40
30
20
10
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
5-star
34
Research & Forecast Report | 1Q 2015 | Hotel | Colliers International
5-star
2015
2014
2013
2012
2011
2010
2009
4-star
70
4-star
2008
3-star
Cumulative Supply of Star-Rated Hotel Projects in

Jakarta
3-star
2007
2006
In 2015, there will be another luxurious hotel with 250 rooms

in the CBD area from The Westin - Starwood Hotels & Resorts
Group. By 2015, Colliers Indonesia expects an addition of 6,310
rooms in the starred-rated hotels, that will be mostly at 3-star
hotels.
10,000
2005
Most hotels in Jakarta are business hotels which rely mostly on

business activities of meetings, conferences and exhibitions. In
early 2015, two prominent names in the hotel industry officially
opened luxury class hotels in Jakarta area: Raffles Hotels &
Resorts with 173 rooms, and Fairmont Hotels & Resorts with
380 rooms. In contrast, the Jakarta hotel market saw a reduction
in the number of hotel rooms with the temporary closure of
the Four Season Hotel Jakarta. This was the Regent Hotel that
opened in 1995 and was operated by Four Seasons years later. As
of the end of 2014, the hotel called a halt to operations and will
re-open after three years of major renovations.
Future Hotel Development Pipeline

NAME OF DEVELOPMENT
STAR
RATED
STR GLOBAL
EQUIVALENT
RATE
LOCATION
NO. OF
ROOMS
REGION
PROJECTED
COMPLETION
TIME
Harris Hotel Hayam Wuruk
Midscale Class
Hayam Wuruk
Central Jakarta
265 2015
Harris Hotel Gunung Sahari
Midscale Class
Gunung Sahari
Central Jakarta
200 2015
Harris Hotel Cilandak
Midscale Class
Cilandak
South Jakarta
130 2015
Aston Neo
Midscale Class
TB Simatupang
South Jakarta
170 Q3 2015
Ibis Style
Midscale Class
Pantai Indah Kapuk
North Jakarta
200 Q4 2015
Prima Hotel
Midscale Class
Wahid Hasyim
Central Jakarta
150 Q4 2015
Santika
Midscale Class
TB Simatupang
South Jakarta
151 Q2 2016
Santika
Midscale Class
Yos Sudarso
North Jakarta
150 Q2 2016
Ibis Style
Midscale Class
Bangka Raya
South Jakarta
200 Q3 2016
The Acacia
Midscale Class
Kramat Raya
Central Jakarta
150 Q3 2016
Hotel @Fachrudin
Midscale Class
Tanah Abang
Central Jakarta
225 Q4 2016
Citizen M Hotel
Midscale Class
Mega Kuningan
South Jakarta
200 Q4 2018
Grand Mercure Kemayoran
Upscale Class
Benyamin Sueb, Kemayoran
Central Jakarta
200 2015
Novotel
Upscale Class
Pantai Indah Kapuk
North Jakarta
220 Q4 2015
SwissBelhotel - Kirana Commercial Avenue
Upscale Class
Boulevard Kelapa Gading
North Jakarta
300 Q3 2016
Aloft
Upscale Class
Wahid Hasyim
Central Jakarta
170 Q4 2017
Hotel @Perintis - South Tower
Upscale Class
Mega Kuningan
South Jakarta
Sheraton
Luxury
Gandaria
South Jakarta
300 Q3 2015
InterContinental
Luxury
Pondok Indah
South Jakarta
300 Q4 2015
St Regis
Luxury
Gatot Subroto
South Jakarta
124 2016
The Langham
Luxury
SCBD
South Jakarta
200 2017
Regent
Luxury
Gatot Subroto
South Jakarta
126 2018
Sofitel
Luxury
Mega Kuningan
South Jakarta
212 2018
112 2018
Source: Colliers International Indonesia - Research and STR Global
Budget Hotel
For the last couple of years, the budget hotel market has shown
exponential supply growth. As of 2015, there will be 1,164
additional hotel rooms. Since 2006, the Amaris brand (Santika
Group) has been the major budget hotel operators with ten hotels
under its management. Other active budget hotel operators
include Aston Group with Fave and NEO, Accor Group with
Ibis budget brand, and Tauzia Management with POP! and the
new brand called Yello. By the end of 2015, Tauzia Management
will dominate hotel development especially for budget hotels
around Indonesia.
Cumulative Supply of Budget Hotel (Economy Class)

in Jakarta
45
40
35
30
25
20
15
10
5
35 Research & Forecast Report | 1Q 2015 | Hotel | Colliers International
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
Future Hotel Development Pipeline

NAME OF DEVELOPMENT
STR GLOBAL
EQUIVALENT RATE
LOCATION
REGION
NO. OF
ROOMS
PROJECTED
COMPLETION
TIME
POP! Hotel Pasar Baru
Economy
Pasar Baru
Central Jakarta
112
2015
POP! Hotel Wahid Hasyim
Economy
Wahid Hasyim
Whiz - Cipete
Economy
Cipete
Central Jakarta
90
2015
South Jakarta
180
2015
@HOM - Cawang
Economy
Cawang
POP! Hotel Gajah Mada
Economy
Gajah Mada
East Jakarta
80
2015
Central Jakarta
90
Whiz - Hayam Wuruk
Economy
Hayam Wuruk
Central Jakarta
200 2015
2015
Yello Hotel Hayam Wuruk
Economy
Hayam Wuruk
Central Jakarta
372 2015
Amaris TB Simatupang
Economy
TB Simatupang
South Jakarta
151 2015
Source: Colliers International Indonesia - Research and STR Global
There are three major groups of hotel management that

are actively expanding their business coverage, i.e. Tauzia
Management, Santika and Intiland. Santika, with the Amaris
brand has dominated the budget hotel market in Jakarta but
recently, Tauzia and Intiland are slowly trying to increase their
market share. By 2016, Tauzia Management will add four hotels
with at least 700 rooms in Jakarta, followed by Intiland, which
will expand with another two hotels providing at least 490 rooms.
Most Active Budget Hotel Operators Based on

Number of Rooms
Most Active Budget Hotel Operators Based on

Number of Hotels
16
14
12
10
8
6
1,600
1,400
1,200
1,000
Santika
Tauzia
800
Year to Date
600
400
200
0
Santika
Year to Date
Tauzia
Intiland
Projected Supply During 2015
Intiland
Projected Supply During 2015
Number of Passenger Through Soekarno - Hatta

Airport
The Composition of Foreign and Domestic Guests

100%
2,000,000
1,500,000
1,000,000
500,000
2014
2013
2012
2011
2010
2009
Source: Jakarta Statistics
Performance
80%
60%
40%
20%
0%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Domestic
Foreign
Source: Jakarta Statistics
The YoY hotel performance is not great, particularly from an

occupancy rate standpoint. According to the STR Global data
point that Colliers refers to, the AOR (Average Occupancy Rate)
in February 2015 decreased quite significantly from 64.3 to
53.7%. This occurred not only in the CBD area but also outside
the CBD area. There were some factors that probably affect
this. First is Election Day when quite a few political parties held
congresses and other political activities in hotel raising the
occupancy rate prior to the legislative election. This explains
why the AOR in early 2014 was higher than in early 2015. Second
is the issuance of a new regulation, after the new cabinet was
inaugurated by the Ministry of Administrative and Bureaucratic
Reform that prohibits civil servants from holding meetings in
hotels. Apart from this, the relatively low occupancy rate will be
further challenged by the continuing new hotel development in
the future.
Since 2010, the number of passengers that arrived in Jakarta

showed an upward trend. By the end of 2014, the number of
passengers that arrived in Indonesia via Soekarno Hatta
International Airport had reached 2,246,437, a slight increase
from the previous year. The highest number arrivals was during
June to September.
37
2008
2007
For some time, hotel guests have been largely domestic. Most
foreign guests choose to stay in 5-star hotels, with some staying in
4-star hotels mainly for business trips. The majority of domestic
guests prefer to stay in 3-star hotels. In the last four years, the
average length of stay of foreign guests in 5-star hotels has been
slightly higher than that of domestic guests.
2,500,000
2006
At the end of 2014, the Indonesian Hotel and Restaurant

Association (PHRI) urged the government to postpone the policy
of banning all government institutions from holding meetings
and conferences in hotels and convention centres. In response
to this, it was indicated that government would relax the ban to
help boost hotel occupancy rates, which had decreased since
the implementation of this strict measure. The hotel association
expects that the ban relaxation will likely increase occupancy
rates in hotels located in remote areas by 10 to 20% where from
40 to 50% of revenues are sourced from government-related
events.
2005
Demand Driver
Average Occupancy Rate of Hotels in Jakarta

100%
Average Occupancy Rate of Hotels in the Outside

CBD Jakarta
100%
80%
80%
60%
60%
40%
40%
20%
20%
0%
Feb 2014
Jakarta
Feb 2015
CBD
0%
Feb 2014
Outside CBD
Feb 2015
Upper Upscale Class
Upscale Class
Source: STR Global
Average Occupancy Rate of Hotels in CBD Jakarta
Source: STR Global
The decreasing performance of AOR at hotels in Jakarta was

followed by the decreasing performance of the ADR (Average
Daily Rate). YoY comparison shows year-to-date ADR reached
USD94.09, down from USD98.15 in the same period last year.
100%
80%
Average Daily Rate of Hotels in Jakarta
60%
USD 140.00
40%
USD 120.00
20%
USD 100.00
USD 80.00
0%
Feb 2014
Feb 2015
Luxury Class
Upper Upscale Class
Upscale Class
Upper Midscale & Midscale Classes+
Source: STR Global
USD 60.00
USD 40.00
USD 20.00
USD 0.00
Feb 2014
Jakarta
Source: STR Global
Feb 2015
CBD
Outside CBD
Average Daily Rate of Hotels in CBD Jakarta

USD 200.00
USD 180.00
USD 160.00
USD 140.00
USD 120.00
USD 100.00
USD 80.00
USD 60.00
USD 40.00
USD 20.00
USD 0.00
Feb 2014
Feb 2015
Outside CBD
Luxury Class
Upper Upscale Class
Upscale Class
Upper Midscale & Midscale Classes+

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

Jakarta
USD 100.00
USD 80.00
USD 60.00
USD 40.00
USD 20.00
USD 0.00
Feb 2014
Feb 2015
Upper Upscale Class
Upscale Class
Source: STR Global
39
Industrial Estate
Sector
Supply
Commencing in 2015, around 50 ha of new industrial land were
introduced by Bekasi Fajar Industrial Estate. This new industrial
land stock is ready for sale. Sizeable industrial land remains
limited and thus far, many plans for expansion have yet to be
concluded.
In 2015, the industrial market will receive quite sizeable
new industrial land from the expansion of several industrial
estates. Apart from the 50 ha available above, around 5.4 ha is
also available from Suryacipta. Another expansion of 25 ha of
commercial area will also be contributed by Bekasi Fajar, This
parcel will be offered at a different price from the industrial lots.
Thus far, only around 80 ha were recognised as this quarters
supply.
One industrial estate located in Bekasi is accelerating the
conclusion of land acquisition and permitting as part of the
expansion plans for around 600 ha. This industrial estate has yet
to confirm that the 600 ha extension plan on which they are now
working will be ready at a specified time. Likewise, two industrial
estates in Serang are also working on expanding the industrial
land with a total area of more than 400 ha.
Apart from operating industrial estates that are actively
expanding their zone are several upcoming industrial estates
located mainly in Karawang that are part of a big consortium
called Trans Hexa Karawang.
Several industrial estates will focus on delivering industrial
land that they have sold to industrial tenants. At the same time,
expansion is still needed for developers to maintain sales. Land
acquisition is one issue that takes most of the time even when the
land has been part of the whole master plan.
While some expansion projects are still underway, the transaction
activity continues. However, we only recognise new supply when
land is ready for occupation with ready infrastructure.
40
The general issue in the industrial market remains the same, i.e.
the limited ready-to-build industrial land. Continued inquiries
for industrial land versus the limited stock of land on offer will
still characterise the overall industrial market although the
expectation of future industrial land is high. Since 2011, land
scarcity has been a major problem for most industrial estates,
and the substantial surge in land demand is at the crux of this
problem. In certain industrial estate locations like in Bekasi,
quite a few potential buyers seeking industrial land come to the
estate frequently there was less transaction recorded because
the land is limited. When the landlords have more bargaining
power, some of them that are located in highly demanded areas
like Bekasi or Karawang continue to sell raw land at the price of
ready-to-use land. Buyers are taking the position of acquiring
raw land at the current price to anticipate a further increase
when land is offered in a ready-to-use condition. Buying raw
land (at the ready-to-use price) is something common.
Demand
Total sales during 1Q 2015 was much underpinned by the sales
in the Serang area. In general, sales activity during the quarter
was quiet compared to the previous quarter. In Tangerang,
Millennium was the only active industrial estate.
Overall, sales of industrial land were sluggish in this early period
of the year. Sales activity within operating industrial estates was
relatively low. The good thing is that the total sales during 1Q
2015 was much underpinned by the sales at two industrial estates
in Serang involving around 42 ha of land. Land absorption is
definitely weakening compared to the same quarter last year.
However, we still see that the industrial market is strong with
potential buyers continuing to ask for industrial land, although
the inquiries are still sporadic.
Total sales in Serang during 1Q 2015 jumped quite substantially
compared to last quarter due to sales at two major industrial
estates in this area, from 17.15 ha to 42.05 ha this quarter.
KIEC reported about 9 ha of land sales (from the total planned
transaction of 18 ha). This piece of land was sold to coal
storage company, which is related to the cement industry.
Modern Cikande, on the other hand, consistently records sales
transactions and has been always be the main driver of the
overall transactions in the greater Jakarta area. Thus far, 33 ha
of land transactions in Modern Cikande were concluded by
five companies from the chemical, probiotic, lubrication, baby
diapers and F&B industries. All of these transactions were by
new companies.
Research & Forecast Report | 1Q 2015 | Industrial Estate | Colliers International
The Bekasi region concluded 30.78 ha of transactions mainly

contributed by Delta Silicon and GIIC. Other than that, two
industrial estates having smaller transactions were MM2100 and
Jababeka. Delta Silicon reported a total of 17.28 ha mainly from
warehouse companies and a small amount from workshops.
A total of 9 ha of land transactions were concluded by heavy
equipment and diaper companies this quarter in GIIC. The
auto-related industry acquired 3 ha of land in MM2100 while
smaller land parcels totalling 1.5 ha in Jababeka were sold to
various companies like auto-related industries, warehouses,
logistics and general commercial buildings.
With limited land to offer, total land transactions in Karawang
are still about the same as last quarter. Contributed only by
Suryacipta and KIIC, this quarters sales are only 6.4 ha, not very
different from last quarters 8.5 ha. A new chemical industry took
5.4 ha in Suryacipta, which helped Suryaciptas performance
after recording no transactions last quarter. This is the biggest
land transaction in Karawang for this quarter because KIIC
only recorded land sales of around 1.1 ha to a new auto-parts
company from Taiwan. In Karawang, two industrial estates
under the brand of Kota Bukit Indah did not record sales or
leasing transactions.
Total land sales transactions during 1Q 2015 were 82.18 ha,

lower than last quarter (representing around 80% of total sales
in 4Q 2014). Despite being lower than last quarter, the total land
transactions recorded during 1Q 2015 has already equalled 26%
of last years total sales. This suggests that the industrial market
has been on the right track to follow the sales trend of 2013 and
2014.
Land Sales Recorded During 1Q 2015 in Each

Industrial Estate
Modern Cikande
Delta Silicon
Krakatau Industrial Estate Cilegon
Greenland International Industrial
Suryacipta
MM2100 Industrial Town
Jababeka
Millenium
Again, Millennium industrial estate consistently recorded sales,

albeit a small one of 1.82 ha and this was the only transaction
during 1Q 2015 in Tangerang.
Similar to Tangerang, the Bogor region only concluded leasing
transactions at CCIE with a total of 1.1 ha from two workshoprelated companies.
Annual Industrial Land Sales
KIIC
0
1,200
1,000
800
600
400
Tangerang
Karawang
2015YTD
2014
2013
2012
2011
2010
2009
2007
2006
2008
Bekasi
Serang
41
15
20
25
30
35
Bogor
10
hectares
200
Jakarta
For the last year, automotive and related industries have not
been the main driver for industrial land absorption. Last year,
the automotive industry only ranked number three after the F&B
and logistics / warehouse industries. This quarter, the automotive
industry plunged to seventh position after consumer goods,
warehouse, F&B, building materials, chemicals, and heavy
equipment industries. However, this condition cannot be used
to predict the overall picture of new tenant composition for the
full year of 2015, as the market will be very dynamic. One thing
that we can opine is that the warehouse and logistics companies
together with consumer goods will be the most active tenants for
this year.
1,400
Hectares
CCIE
Types of Activities Industries During 1Q 2015
Greater Jakarta Industrial Land Price

USD 250
USD 200
Medical
1.25%
USD 150
Bogor
Land Price
One industrial estate in Bekasi introduced a new land price of
USD230/sq m, following the last quarters adjustment made by
the industrial estate adjacent to it. One industrial estate in this
location with the biggest land bank kept adjusting the land price
and monitored the price dynamics, particularly in Bekasi and
Karawang. To date, they adjusted the price from USD185 to 195/
sq m this quarter. Other than these two industrial estates, prices
have been stable. The average land price for available industrial
plots in Bekasi was registered at USD222.47, about the same as
the price last year.
Another industrial estate in Serang was also quite confident
with the new price of IDR1.9 million/sq m, representing a 8.5%
increase over last quarter. This brought the average industrial
land price in Serang to USD132.77/sq m (after converting from
local currency to US dollars).
Other than these two regions, industrial land prices are stable in
Bogor, Tangerang and Karawang. There might be a slight price
adjustment during 2015, depending on the economy and sales
performance for the full year of 2015.
42
Bekasi
Tangerang
Karawang
2015YTD
2014
2013
USD 0
2012
Food &
Beverage
13.60%
USD 50
2011
Consumer
Goods
27.99%
Automotive
5.48%
USD 100
2010
Plastics
1.22%
2009
Others
1.28%
2008
Chemicals
7.95%
Building
Material
10.95%
2007
Heavy
Equipment
Machinery
7.30%
1.34%
2006
Logistics/
Warehousing
21.64%
Serang
Industrial Land Prices and Maintenance Costs*

REGION
LAND PRICE (PER SQ M)

LOWEST
HIGHEST
MAINTENANCE COSTS
(PER SQ M PER MONTH)
AVERAGE
LOWEST
HIGHEST
AVERAGE
USD 0.06
Bogor
USD 120.0
USD 218.7
USD 169.3
USD 0.06
USD 0.06
Bekasi
USD 195.0
USD 250.0
USD 222.5
USD 0.06
USD 0.08
USD 0.07
Tangerang
USD 148.4
USD 156.2
USD 152.3
USD 0.03
USD 0.08
USD 0.06
Karawang
USD 170.0
USD 200.0
USD 185.0
USD 0.05
USD 0.10
USD 0.06
Serang
USD 117.2
USD 148.4
USD 132.8
USD 0.03
USD 0.05
USD 0.04
*1USD = Rp 12,804
Maintenance Cost
In general, maintenance costs stood at the same level as last
quarter. Only in Serang did two operating industrial estates
announce adjustments in service charges during the quarter
under review. The average service charge in Serang was IDR449/
sq m/month last quarter and in 1Q 2015 it rose to IDR592/sq m/
month.
Greater Jakarta Industrial Maintenance Cost

$0.10
US$/sq m/month
$0.08
$0.06
$0.04
$0.02
Bogor
Bekasi
Tangerang
Karawang
2015YTD
2014
2013
2012
2011
2010
2009
2008
2007
2006
$0.00
Serang
Concluding Thought
The industrial market initiated the year with relatively good
performance with total sales for 1Q 2015 about a quarter of sales
in the full year of 2014. Albeit lower than last quarter, at least the
industrial market has signalled for further recovery as buyers
have been actively looking for industrial land during the quarter.
Land availability should not become a crucial issue, although
some prominent estates have find it difficulties in providing
big parcel land in prime location. Nevertheless several underconstruction industrial estates largely located in Karawang and
some other estates in Serang, Tangerang and Bekasi are working
on construction of industrial which would become significant
land bank in the future.
The cancellation of mega project Cilamaya port would broaden
the opportunity for industrial location to move further east to
Subang and Purwakarta. The government has indicated that
Cilamaya project would be shifted to other areas that would
not interfere with the very important Pertamina facilities for
distributing gas when the Cilamaya project is executed.
43
502 offices in
67 countries on
6 continents
Primary Authors:
Ferry Salanto
Associate Director | Jakarta
62 21 521 1400 ext 134
Ferry.Salanto@colliers.com
United States: 140

Canada: 31
Latin America: 24
Asia: 39
ANZ: 160
EMEA: 108
$2.3
billion in
annual revenue
Colliers International Indonesia

World Trade Centre 10th & 14th floor
Jalan Jenderal Sudirman Kav. 29 - 31
Jakarta 12920
Indonesia
TEL 62 21 521 1400
158
million square meters

managed
16,300
professionals
and staff
About Colliers International

Colliers International is a global leader in commercial real estate services, with over 16,300 professionals
operating out of more than 502 offices in 67 countries. A subsidiary of FirstService Corporation, Colliers
International delivers a full range of services to real estate users, owners and investors worldwide,
including global corporate solutions, brokerage, property and asset management, hotel investment
sales and consulting, valuation, consulting and appraisal services, mortgage banking and insightful
research. The latest annual survey by the Lipsey Company ranked Colliers International as the secondmost recognized commercial real estate firm in the world.
colliers.com
Copyright 2013 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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Research &

Jakarta Property Market Report

Associate Director | Research

CBD Office Cumulative Supply

Source: Colliers International Indonesia - Research

CBD Office Cumulative Supply Based on Area

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

Source: Colliers International Indonesia - Research

is a leader in global real estate services, defined by our spirit

In the CBD, except Jalan Thamrin, all sub-markets will contribute

Annual Future Office Space in the CBD

Source: Colliers International Indonesia - Research

Based on marketing scheme, offices for lease constitute 78.2%

Outside CBD Office Cumulative Supply

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

Source: Colliers International Indonesia - Research

Annual Future Office Space in the Outside CBD

The outside CBD area will continue to provide office space at

Cumulative Office Space in TB Simatupang

Source: Colliers International Indonesia - Research

Source: Colliers International Indonesia - Research

Almost 47% of future office buildings in the outside CBD

TB Simatupang continues to bolster its position as a secondary

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

Annual Future Office Space in TB Simatupang

Annual Supply in the Outside CBD and TB Simatupang

Cumulative Supply in the Outside CBD and TB

Source: Colliers International Indonesia - Research

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

Source: Colliers International Indonesia - Research

Overall, the construction work of future office buildings in TB

Outside CBD excluding TB Simatupang

Source: Colliers International Indonesia - Research

Outside CBD excluding TB Simatupang

New Supply Pipeline

OFFICE BUILDING PROJECTS NAME

75,000 For Lease

The Noble House Office Tower

45,000 For Lease

AIA Center (Menara Selaras)

47,000 For Lease

60,995 For Lease

Telkom Landmark Tower II

65,000 For Lease

Bank Muamalat Tower (Satrio Square)

24,600 For Lease

BTPN Tower (Bahana Office Tower)

50,000 For Lease

65,000 For Lease

36,367 For Lease & Sale

International Financial Center 2

50,000 For Lease

41,456 For Sale

Capital Palace (Office Tower @ ST Regis)

90,511 For Lease

50,000 For Lease

Ciputra World Jakarta 2

70,000 For Lease & Sale

31,604 For Lease

56,492 For Sale

Lippo Thamrin Office Tower

16,500 For Sale

T Tower (BJB Tower)

24,000 For Sale