I N D U ST R I A L

JAKARTA PROPERTY MARKET

Q3 2019
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ECONOMIC OVERVIEW

Leads Property Research | Jakarta Property Market Q3 2019

Economic Overview INDUSTRIAL
Economic Indicators as of Q3 2019

Indonesia’s Economic Indicators

Q1 Q2 Q3
Indicator 2012 2013 2014 2015 2016 2017 2018
2019 2019 2019

Economic Growth (%
6.23 5.78 5.02 4.79 5.02 5.19 5.18 5.07 5.05 5.02
YoY)

Inflation Rate
4.3 8.4 8.4% 3.4 3.0 3.8 3.1 2.4 3.32 3.13
(% YoY)

Exchange Rate
9,714 12,189 12,440 13,795 13,436 13,548 14,481 14,244 14,141 14,174
(USD/IDR)

BI 7-Days Repo Rate

- - - - 4.75 4.25 6.00 6.00 5.75 5.00
(%)

Source : Bank Indonesia, BPS , Leads Property Research.

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INDUSTRIAL MARKET UPDATE

AS OF Q3 2019

Leads Property Research | Jakarta Property Market Q3 2019

Industrial Land INDUSTRIAL
Major Industrial Estate in Jakarta and Tangerang

Tj. Priok
Seaport
Soekarno-
Hatta Airport
1
Tangerang 2 JAKARTA

4
5
Serang
Tangerang

Distance from Distance Distance from Distance

No. Industrial Estate Soekarno – from Tj. Priok No. Industrial Estate Soekarno – from Tj. Priok
Hatta Airport Seaport Hatta Airport Seaport

1 Jakarta Industrial Estate Pulogadung (JIEP) 30.9 km 13.3 km 5 Modern Cikande Industrial Estate 35.5 km 61.1 km

2 Kawasan Industri Pasar Kemis 11.6 km 36.5 km

3 Millenium Industrial Estate 22.1 km 46.2 km

4 Krakatau Industrial Estate Cilegon 68 km 93.2 km

Source : Leads Property Research

Industrial Land INDUSTRIAL
Major Industrial Estate in Bekasi

1
Tj. Priok
Soekarno- Seaport
Hatta Airport

BEKASI REGENCY
JAKARTA

2 KARAWANG
REGENCY
BEKASI CITY 4
3
5 6
7
8

9 10

Distance
Distance from Distance Distance
from
No. Industrial Estate Soekarno – from Tj. Priok No. Industrial Estate from Tj. Priok
Soekarno –
Hatta Airport Seaport Seaport
Hatta Airport

Kawasan Berikat Nusantara – Marunda

1 36.6 km 10.5 km 6 Kawasan Industri Karyadeka Pancamurni 58.6 km 38.8 km
Center

2 Kawasan Industri Gobel (KIG) 50.7 km 29.7 km 7 Lippo Cikarang (Delta Silicon) 56.9 km 38.0 km

3 MM 2100 52.3 km 32.6 km 8 Bekasi International Industrial Estate (BIIE) 58 km 39.2 km

Kawasan Industrial Terpadu Indonesia China

4 Jababeka Industrial Estate Cikarang (JIEC) 59.9 km 35.4 km 9 63.6 km 45.3 km
(KITIC)

5 East Jakarta Industrial Park (EJIP) 56.5 km 35.9 km 10 Greenland International Industrial City (GIIC) 64.6 km 45.8 km

Source: Leads Property Services Indonesia, July 2019

Industrial Land INDUSTRIAL
Major Industrial Estate in Karawang

Tj. Priok
Soekarno- Seaport
Hatta Airport

BEKASI
JAKARTA REGENCY

KARAWANG
REGENCY
BEKASI CITY

3
1 4
5
2 7

Distance Distance
Distance from Distance from
from Tj. from Tj.
No. Industrial Estate Soekarno No. Industrial Estate Soekarno Hatta
Priok Priok
Hatta Airport Airport
Seaport Seaport

1 Artha Industrial Hill 70.6 km 51.0 km 5 Suryacipta City of Industry 80.7 km 59.8 km

2 Karawang New Industry City 71.2 km 52.0 km 6 Bukit Indah Industrial Park 90.7 km 69.9 km

Karawang International Industrial City

3 73.3 km 52.3 km 7 Kawasan Industri Kujang Cikampek 91 km 69.6 km
(KIIC)

4 Kawasan Industri Mitrakarawang (KIM) 77.6 km 56.9 km

Source : Leads Property Research

Industrial Land INDUSTRIAL
Supply & Demand As of Q3 2019
Cummulative Supply Cummulative Demand Sales Rate

15,000 100.00%

90.00%

12,000 80.00%

70.00%

9,000 60.00%

50.00%

6,000 40.00%

30.00%

3,000 20.00%

10.00%

- 0.00%
Q1 2015

Q2 2015

Q3 2015

Q4 2015

Q1 2016

Q2 2016

Q3 2016

Q4 2016

Q1 2017

Q2 2017

Q3 2017

Q4 2017

Q1 2018

Q2 2018

Q3 2018

Q4 2018

Q1 2019

Q2 2019

Q3 2019
*Cumulative supply include existing (ready-to-build land) and future supply which are already offered to the market.

• There was additional industrial land supply of 96 hectare in Greater Jakarta area, which is part of phased land selling. Such figure has
brought cumulative supply to register 12,472 hectare of land. Out of such figure, Bekasi, Karawang and Purwakarta area holding 74%
proportion of industrial land distribution in Greater Jakarta area.

• Total cumulative demand in Q3 2019 is registered at 11,401 Ha, an insignificant growth of 0.90% QoQ, which is equivalent 101 hectare
of demand. In terms of annual figure, annual demand grew by 1.4% or 154 hectare of land. Some business sectors driving industrial land
demand include textile, consumer goods, steel, building material, automotive, electrical, and petrochemical, taking place mostly in Bekasi,
Karawang - Purwakarta and Cilegon.

Source : Leads Property Research

Industrial Land INDUSTRIAL
Supply Based on Location as of Q3 2019

Tangerang,
6%

Serang,
8%

Bekasi, 43%

Karawang & Purwakarta, 29%

Bogor, 1%
Jakarta, 7% Cilegon, 6%

The industrial land supply distributions in Jakarta & Greater Jakarta are still predominantly at Bekasi with 43% of the total supply and
following on the second domination by Karawang & Purwakarta regions with 29% of the total supply. While the remaining is contributed by
Serang (8%), Jakarta (7%), Cilegon (6%), Tangerang (6%), and Bogor only 1%.

*Cumulative supply include existing (ready-to-build land) and future supply that already offered to the market.

Source : Leads Property Research

Industrial Land INDUSTRIAL
Market Statistics By Location as of Q3 2019
Average Land Price
Location Land Absorption Rate
IDR/sqm USD/sqm

Bekasi 93.31% 2,875,000 202.84

Bogor 84.86% 2,500,000 176.38

Cilegon 91.74% 2,000,000 141.10

Jakarta 99.73% 5,750,000 405.67

Karawang & Purwakarta 84.78% 2,240,834 158.09

Serang 81.52% 2,000,000 141.10

Tangerang 96.20% 2,466,667 174.03

Average 91.31% 2,746,000 193.74

Exchange Rate USD 1 = Rp 14,174

• As depicted in the picture, industrial land price tend to stabilize. Landlords would prefer maintaining land price as most of them still have
land bank yet to be developed. During Q3 2019, price of industrial land achieved IDR 2,746,000 psm, or an insignificant correction of
0.18%.

• Such correction occurred as industrial complex in Jakarta and Cilegon offered their new phase of industrial land selling at competitive price
that is lower than average market price.

Source : Leads Property Research

Industrial Land INDUSTRIAL
Price Based on Location as of Q3 2019

Bekasi Bogor Cilegon Jakarta Karawang & Purwakarta Serang Tangerang

7,000,000

6,000,000

5,000,000

4,000,000
IDR psm

3,000,000

2,000,000

1,000,000

-
2015 2016 2017 2018 Q1 2019 Q2 2019 Q3 2019

Source : Leads Property Research

Summary INDUSTRIAL
Industrial Market of Jakarta & Greater Jakarta as of Q3 2019

Q2 2018 Y-o-Y Q3 2019 Q-o-Q Q2 2019

Total Stock Cumulative (ha)* 11,496 12,472 12,376

Land Absorption 85.47% 91.31% 91.30%

IDR 2,718,000 IDR 2,746,000 IDR 2,708,000

Average Land Price

USD 182.06 USD 193.74 USD 191.85

Exchange Rate USD 1 = Rp14,174 (Q3 2019)

*Cumulative supply include existing (ready-to-build land) and future supply that already offered to the market.

Source : Leads Property Research

Outlook INDUSTRIAL
Industrial Market of Jakarta as of Q3 2019
Market Outlook

As Indonesian’s economy is predicted to experience low figure of economic growth of 4.9% by

Insignificant 2020*, industrial sector might undergo further pressure. Land absorption in 2020 is expected to
Demand be lesser than 2019 as industrialists might not expand. The impact of global economic slow-
Decrease down might bring industrialists to reduce production, hence, export activities are potential to be
more limited as well.

The result of the election implies that the on-going infrastructure program will continue on, which
will bring positive climate to industrial sectors. Infrastructures development e.g. Jakarta-
Stock Increase Cikampek Elevated Tollway, Cibitung- Cilincing Tollway (part of JORR 2), and Patimban Port are
expected to lure industrialist to have their existence along- and-nearby such infrastructures,
hence, it would bring more demand of industrial land in some regions.

Such correction occurred as an industrial complex in Jakarta and Cilegon as they offered their
Price Stable new phase of industrial land selling at competitive price that is lower than average market price.
However, the average asking price of industrial land is predicted to be stable.

Source : Leads Property Research

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THANK YOU

Leads Property Research | Jakarta Property Market Q3 2019