Q2 2016 ResearchandForecastReport Jakarta

Research &
Forecast Report
Q2 2016
Jakarta Property Market Report
Accelerating success.
Highlight
Office Sector Retail Sector
Office demand has dwindled for the last two years, bolstering the Bassura City Mall was the only new shopping centre in Ja-
negotiating position of tenants in the market. Newly operating office karta during H1 2016 contributing around 21,000 sq m of
buildings added further downward pressure on rents because of the retail space. Thus far, occupancy performance and rental
additional vacant space they have added to the supply. rates are relatively stable. Average asking rent was record-
ed at IDR566,087/sq m/month as of Q2 2016.
Apartment Sector
During the quarter, apartment sales performance continued to Industrial Estate Sector
languish with a moderate 0.5% growth in price compared to the The industrial market has yet to recover from the generally slow
previous quarter. There were 4,777 new units from the handover sales performance which has led to further downward pressure
of a total of eight apartment towers from five projects. The cumu- on industrial land prices. Two industrial estates reportedly intro-
lative supply of strata-title apartments in Jakarta grew by 2.9% duced prices which were lower this quarter by an average of 8%.
QoQ or 12.4% YoY to a record 167,697 units. Prices of apartments
have been relatively flat as most of the projects hold prices in
order to attract buyers. The average asking price of apartments
Hotel Sector
in Jakarta was recorded at IDR31 million/sq m (excluding VAT), Three new hotel projects began operation in Jakarta during the
increased modestly by 0.5% QoQ. last quarter. In the 3-star category, Archipelago International (131
rooms) and Liberty hotel (60 rooms) opened. In the 4-star ho-
Expatriate Housing Sector tel category, Accor opened a Mercure brand hotel providing 207
rooms. Total star-rated hotels in Jakarta now total 37,695 rooms
There were signs of recovery during H1 2016 with number of re- from 182 projects. The AOR increased 4.9% to 56.7% QoQ and
peat corporate clients who signing new one-year lease contracts. the Jakarta ADR slightly increased by 0.15% to USD82.65 in Q2
Many companies employing expats are currently only willing to 2016Q.
commit to a maximum one-year contract; very few of them are
willing to accept two years rent in advance.
2 Quarterly Report | Q2 2016 | Jakarta | Colliers International

Office Sector Supply
Office Spaces Offered For Lease

Forecast at a glance
CBD
Supply
Three office buildings (Sinarmas MSIG, IFC 2 and CBD Office Cumulative Supply
Capital Place) began operation this quarter contrib-
8,000,000
uting 215,511 sq m bringing the cumulative office
supply in the CBD to 5.46 million sq m. A total of 7,000,000
11 office buildings are expected to be completed in
2016 adding 670,000 sq m of office space to supply. 6,000,000
5,000,000
Demand
Infrastructure-related companies including those 4,000,000
building roads and power plants are becoming more
3,000,000
common tenants while insurance, bank and other
sq m
finance-related companies remain active in search- 2,000,000

ing for space.
1,000,000
Occupancy 0
Occupancy continued its two year declining trend
2011
2015
2013
2010
2017F
2012
2014
2019F
2018F
2016F
and this quarter was recorded at 85.6%, the lowest
since 2005. Going forward, given a moderate GDP
growth projection and huge projected supply, occu- Existing Supply Additional Supply Supply YTD Future Supply
pancy rates might drop an additional 3% by the end
of 2016. Source: Colliers International Indonesia - Research
Rent Eleven office buildings are expected to be completed, providing

About 30 buildings considerably lowered asking a total of around 670,000 sq m of additional office spaces in
base rental rates during the first semester this year. 2016. As of Q2 2016, after Centennial Tower officially began
Newly operating office buildings are most often pri- operation last quarter, three office buildings opened afterwards,
oritizing occupancy levels; therefore, we expect to which include Sinarmas MSIG, International Financial Centre
see more discounted rental rates. 2 and Capital Place. These three office buildings contributed
215,511 sq m of spaces, bringing about a total, cumulative office
area in the CBD to 5.46 million sq m, as of Q2 2016. With sev-
eral office buildings in the pipeline, we expect more new build-
ings to be completed in the second semester to provide about
5.81 million sq m by the end 2016, or a growth of 12.2% YoY.
CBD Annual Supply More office buildings in the CBD are being demolished. Two
old and relatively small office buildings Wisma Sudirman and
750,000 Nugra Santana will likely be torn down in the future. Thus far,
these buildings are still in operation.
600,000
In Rasuna Said, Graha Surya Internusa was demolished last
year and will be replaced by SSI Tower. Construction has al-
450,000 ready commenced. Other office buildings are on schedule to be
completed in 2020. Two land plots in Sudirman will potentially
become future office buildings developed by two foreign devel-
300,000 opers. Pertamina also indicated to build a new tower in Rasuna
sq m
Said.
150,000
Four office buildings that will occupy more than 50,000 sq m
will make the Gatot Subroto submarket the biggest office space
0 contributor in 2016. Gatot Subroto will contribute 47% of the
total additional office spaces in 2016, larger than Sudirman by
2011
2015
2013
2010
2017F
2012
2014
2019F
2018F
2016F
19%. However, given a huge projected supply in 2017 2018,

Sudirman will still be the major contributor of office spaces in
Additional Supply Supply YTD Under Construction In Planning the future. Sudirman will see a total of 754,805 sq m of addi-
Source: Colliers International Indonesia - Research tional office spaces that will be contributed by nine office build-
ings.
Quoted from Colliers earlier report, 35 office buildings will be
completed between 2016 and 2019, creating 2.38 million sq m CBD Cumulative Supply Based on Area
of new office spaces. However, we revised this projection as of
Q2 2016 due to the change in the completion schedule of a few Satrio
buildings. The current projected number for the same period
slightly decreased to 2.28 million sq m, contributed by 34 of- Gatot Subroto
fice buildings. Three office buildings decided to reschedule their
completion after 2019. Mega Kuningan
Rasuna Said
Looking at how things are progressing, the construction of most
of the new office buildings is already underway. Around 70% of
Sudirman
the total number of office buildings that are scheduled for com-
pletion in 2018 2019 have already began construction works. Thamrin
On the back of a buoyant, long-term growth projection of In- 2,500,000
3,000,000
1,000,000
2,000,000
0
500,000
3,500,000
1,500,000
donesias economy, some developers (international and local)

plan to launch their new office projects in the CBD. Five office
buildings (not yet included in the pipeline list) with leasable area
sq m
around 80,000 sq m will be developed around Rasuna Said and
Sudirman. Cumulative Supply by 2015 Supply in 2016 Projected Supply 2019F
Source: Colliers International Indonesia - Research

There is also a very likely option to redevelop existing projects,
to allow landlords to maximise plot ratio of the land. With a
primary location near future MRT stations in Sudirman, at least In the CBD, the office for lease type is the most common of-
four developers plan to redevelop their existing office buildings fice type. After a dormant 2013 2014, the office for sale
and replace them with modern and taller buildings. Two office (strata-title office) type started to inflate in number. The annual
buildings within a commercial compound were already demol- supply projection of strata-title offices will be 320,000 sq m per
ished in 2015. By this quarter, the developers have started rede- annum, from 2016 to 2019. Except in 2019, the annual supply
veloping a new tower, Centennial Millennium, after demolishing might go down, but the number is not fixed because anything
two office towers CIMB Plaza and Sequis Plaza. Scheduled that would be available in 2019 could only be seen in the next
for completion in 2019, Centennial Millennium would provide quarters. From 2016 to 2018, about 14 future office buildings
around 100,000 sqm of office spaces. will produce 842,820 sq m of office spaces for sale, 59% higher
than office spaces for lease.

CBD Annual Supply Based on Marketing Scheme From 2016 to 2019, the projected cumulative supply in TB Si-
matupang will grow moderately, with an additional seven new
500,000 office buildings. Cibis Tower, South Quarter Tower 3 and Zuria
450,000 Tower will become available and are expected to begin opera-
tion by the end of 2016.
400,000
350,000
Outside the CBD Cumulative Supply
300,000
3,000,000
250,000
sq m
200,000 2,500,000
150,000
100,000 2,000,000
50,000
1,500,000
0
sq m
2010 2012 2014 2016F 2018F
1,000,000
For Lease For Sale
Source: Colliers International Indonesia - Research 500,000
0
2010 2012 2014 2016F 2018F
Outside the CBD
Outside CBD excl. TB Simatupang TB Simatupang
As of Q2 2016, five office buildings officially began operation
outside the CBD. Some of these buildings are found in South Source: Colliers International Indonesia - Research
Jakarta LOffice, Office Tower at Niffaro and Nariba Office
Tower. One is in West Jakarta (Soho Capital at Podomoro City)
Outside the CBD Cumulative Supply Based on Area
and another in North Jakarta (Altira). The total area of new of-
fice spaces this quarter is 150,000 sq m, bringing a cumulative
supply to 2.89 million sq m, for a growth of 12% YoY. West Jakarta
East Jakarta
At least 10 office buildings have been in operation outside the
CBD YoY. The market is anticipating another nine office build-
North Jakarta
ings to be completed by the end of 2016, and this will bring a
cumulative supply to over 3 million sq m. In 2016, new office
South Jakarta
buildings will still be mainly found in South Jakarta (50% of the
total office spaces in 2016). In South Jakarta, Mampang and Central Jakarta
Pasar Minggu corridors arose as new potential commercial ar-
eas for office development, besides the already established TB TB Simatupang
Simatupang and Pondok Indah areas.
400,000
200,000
1,200,000
1,000,000
0
800,000
600,000
We expect to see additional 381,059 sq m of office spaces out-

side the CBD in 2016, 40% of which has already begun opera-
tion in the first semester. All future office buildings for 2016
sq m
will likely be finished as scheduled this year, based on how the
current construction is progressing. Thus far, from the list of Cumulative Supply by 2015 Supply in 2016 Projected Supply 2019F
future office buildings in 2017 to 2019, almost 50% are already
under construction. About three office buildings will probably
start construction faster than scheduled, two of which The
Manhattan Tower 2 and Arkadia Tower G are located in TB
Simatupang.
Meanwhile, some developers have a different perspective and

see such construction developments over the next few years
with alarm, and therefore might reschedule their project launch
time.

Outside the CBD excluding TB Simatupang Annual TB Simatupang Annual Supply
Supply
300,000
300,000
250,000
250,000
200,000
200,000
150,000
150,000
100,000
sq m
100,000
sq m
50,000
50,000
0
2010
2017F
2012
2014
2011
2015
2013
2019F
2018F
2016F
0
2010
2017F
2012
2014
2011
2015
2013
2019F
2018F
2016F
Annual Supply Additional Supply YTD
Annual Supply Additional Supply YTD Under Construction In Planning
Under Construction In Planning Source: Colliers International Indonesia - Research
New Supply Pipeline

projected SGA*
Office building projects name location Marketing scheme status development
completion (sq m)
CBD
2016 Telkom Landmark Tower II Gatot Subroto 65,000 For Lease Under Construction
2016 Convergence Rasuna Said 36,367 For Lease & Sale Under Construction
2016 Menara Palma 2 Rasuna Said 50,000 For Lease Under Construction
2016 Ciputra World Jakarta 2 Satrio 70,000 For Lease & Sale Under Construction
2016 Satrio Tower Satrio 31,604 For Lease Under Construction
2016 The Tower Gatot Subroto 56,492 For Sale Under Construction
2016 Menara Pertiwi Mega Kuningan 41,456 For Sale Under Construction
2017 PCPD Tower Sudirman 90,500 For Lease Under Construction
2017 T Tower Gatot Subroto 24,000 For Lease & Sale Under Construction
2017 Lippo Thamrin Office Tower Thamrin 16,500 For Sale Under Construction
2017 Prosperity Tower (within District 8 complex) Sudirman 71,545 For Sale Under Construction
2017 Treasury Tower (within District 8 complex) Sudirman 139,000 For Sale Under Construction
2017 Sopo Del Tower B Mega Kuningan 39,200 For Sale Under Construction
2018 Mangkuluhur Tower Gatot Subroto 53,000 For Lease & Sale Under Construction
2018 Sopo Del Tower A Mega Kuningan 64,000 For Lease Under Construction
2018 Sequis Tower Sudirman 78,000 For Lease Under Construction
2018 Sudirman 7.8 (ex Nugra Santana) Sudirman 52,000 For Sale Under Construction
2018 Tower Two at The City Center Sudirman 101,260 For Lease Under Construction
2018 World Trade Center III Sudirman 70,000 For Lease Under Construction
2018 World Capital Tower Mega Kuningan 72,000 For Lease & Sale Under Construction
2018 Tower 2 @ Ciputra World Jakarta 1 Satrio 70,000 For Lease & Sale Under Construction
2018 Astra Tower Sudirman 80,000 For Lease Under Construction
2019 Icon Tower Sudirman 72,500 For Lease Under Construction
2019 Thamrin Nine Thamrin 97,500 For Lease Under Construction
continued

projected SGA*
Office building projects name location Marketing scheme status development
completion (sq m)
continuation
2019 Indonesia Satu Thamrin 150,000 For Lease Under Construction
2019 The Hundred Mega Kuningan 45,000 For Lease In Planning
2019 Chitaland Satrio 90,000 For Lease Under Construction
2019 Plaza Gani Djemat 2 Thamrin 8,000 For Lease In Planning
2019 Gran Rubina Tower 2 Rasuna Said 32,000 For Sale In Planning
2019 Centennial Millenium Sudirman 100,000 For Lease Under Construction
Outside CBD exclude TB Simatupang
2016 ST Moritz Office Tower Puri Indah 19,500 For Sale 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 Harton Tower Kelapa Gading 8,000 For Lease Under Construction
2016 Tamansari Parama Wahid Hasyim 10,800 For Sale Under Construction
2016 One Belpark Office Pondok Labu 17,800 For Lease Under Construction
2017 Soho Pancoran Pancoran 30,000 For Sale Under Construction
2017 BKP Office Tower Sunter 16,000 For Lease Under Construction
2017 Hermina Office Building Kemayoran 20,000 For Sale Under Construction
2017 Ciputra International Puri 1 Phase 1 Puri 15,000 For Lease In Planning
2018 Lippo Tower Holland Village Cempaka Putih 27,000 For Sale In Planning
2018 One Tower Kemayoran 21,400 For Sale Under Construction
2018 Ciputra Twin Tower 1 Kemayoran 40,000 For Sale Under Construction
2018 Ciputra Twin Tower 2 Kemayoran 40,000 For Lease Under Construction
2018 Ciputra International Puri Phase 2 Puri 15,000 For Lease In Planning
2018 Ciputra Internatinal Puri 2 Phase 3 Puri 15,000 For Lease In Planning
2019 MNC Tower II Kebon Sirih 60,000 For Lease Under Construction
2019 Jakarta Box Tower Kebon Sirih 36,000 For Lease In Planning
TB Simatupang
2016 South Quarter Tower 3 40,778 For Lease Under Construction

2016 Zuria Tower 6,584 For Lease Under Construction
2016 Cibis Tower 60,800 For Lease & Sale Under Construction
2018 The Sima 60,000 For Lease Under Construction
2018 Beltway Office Park Tower 4 30,839 For Lease In Planning
2019 Arkadia Tower G 30,000 For Lease In Planning
2019 The Manhattan Square Tower 2 39,375 For Lease & Sale In Planning

Demand The pre-committed occupancy of office spaces for lease in 2015
and 2017 also grew slowly. Thus far, pre-committed occupan-
cy only reached 43.4% as of Q2 2016. The market has been
CBD through the first half of 2016, nevertheless only 35% of the total
office space in 2016 has been absorbed. Further, only 54% of
Occupancy Changes in the CBD the total new office spaces available in 2015 were absorbed.
Office Building
Q4 2015 YTD Q2 2016 YoY Q2 2015
Given a normal annual demand projection in the CBD, which
Grade used to range around 250,000 sq m, this year would be a very
All Classes 89.4% 85.6% 93.7% challenging situation for office market to catch up with the huge
Grade A 85.5% 79.4% 95.8% number vacant spaces. The good thing so far is that the amount
Premium Classes 88.5% 87.4% 81.5% of 2017 annual supply will be marginal, which would help stabi-
lise the market, although the number of strata-title will be quite
significant.
Occupancy rate revealed a declining trend in the last two years.
As of Q2 2016, occupancy was recorded at 85.6%, which is a Pre-Committed Occupancy of Office Buildings for
historic low since 2005. A considerable decline in occupancy Lease in the CBD (2015 2017)
by 3% QoQ was mainly triggered by the influx of more than
200,000 sq m additional office spaces during the quarter and
mainly with high vacancy. Also, occupancy performance of
some old office buildings dropped since old tenants have re- 2017F
located.
Occupancy generally plunged across all office grades. With the

absence of new supplies during the quarter, occupancy of pre- 2016F
mium buildings was also down. Historically, occupancy of pre-
mium buildings hovered at above 90% since 2010. More vacant
spaces were seen during the quarter in three premium office
buildings. Overall occupancy rate of offices at this grade was
down 2% to 87.4%. 2015
Average Occupancy Rates in the CBD

0 100,000 200,000 300,000 400,000
100%
sq m
Space Absorbed Space Unabsorbed
95%
90%
Outside the CBD
85%
Occupancy Changes in Outside the CBD
80% area Q4 2015 YoY Q2 2016 QoQ Q2 2015
Outside the CBD 89.4% 85.6% 93.7%
excluding TB
75% Simatupang
TB Simatupang 88.5% 87.4% 81.5%
70% Source: Colliers International Indonesia - Research
2010 2011 2012 2013 2014 2015 2016YTD
Premium Grade A All Classes As of Q2 2016, the overall occupancy rate outside the CBD con-
tinued on a downward trend and was registered at 84.7%. At
Source: Colliers International Indonesia - Research least nine office buildings still have more than 10,000 sq m of
vacant spaces. All of these office buildings began operation in
2015 and 2016. The openings of new office buildings in West,
North and South Jakarta also negatively impacted occupancy
rates.

Without additional new office buildings in the market, the occu-
pancy rate was also down in TB Simatupang. Quite a few office
Asking Rents
buildings located in TB Simatupang, including Pondok Indah, re-
ported a drop in occupancy.
CBD
Average Asking Rents Based on Building Grade
Average Occupancy Rates in Outside the CBD
IDR600,000
100%
IDR525,000
90%
80% IDR450,000
70% IDR375,000
60%
IDR300,000
50%
IDR225,000
40%
30% IDR150,000
20% IDR75,000
10%
IDR0
0%
Premium Grade A Grade B Grade C
2010 2011 2012 2013 2014 2015 2016YTD
Q2 2015 Q2 2016
Outside CBD exclude TB Simatupang TB Simatupang
Average Asking Rents in the CBD
Pre-Committed Occupancy of Office Buildings For
IDR750,000
Lease in Outside the CBD (2015 2017)
IDR600,000
2017F
IDR450,000
IDR300,000
2016F
IDR150,000
2015
IDR0
2008 2010 2012 2014 2016YTD
Premium Class All Classes
0 30,000 60,000 90,000 120,000
sq m Source: Colliers International Indonesia - Research
Space Absorbed Vacant Space

In general, the average asking rents in the CBD for all class-
es of building were down during the first semester of 2016.
About 30 buildings were reported to have lowered their rent
quite considerably during this period. However, several Grade-
A buildings are becoming new supplies, and are now offering
more expensive rental rates compared with the average mar-
ket. Most of these newly operating buildings started with a
high vacancy rate. And because our rental calculation is based
on the space available (vacant space), the overall rental rates
seems to increase. YTD rental rate changed by 4.2% to record
IDR346,222/sq m/month, as of Q2 2016 for all classes of build-
ing in the CBD.

The average base rental for Premium buildings also dropped by As of Q2 2016, the overall rental rate outside the CBD and in
1.3% QoQ. Two buildings of this class lowered their asking rent TB Simatupang slightly decreased QoQ to a record IDR224,734/
by 10% during the quarter, thus bringing the average rents to sq m/month. Four office buildings located outside TB Simatu-
IDR472,293/sq m/month. pang lowered their rents by as much as 30%. Further, the rental
rates for newly operating office buildings are relatively below
the market price.
Average Asking Rents Based on Building Area
IDR500,000 In TB Simatupang, average asking rents dropped by 10% for
the last six months to IDR242,033/sq m/month. Subsequent to
the booming office market in 2012, TB Simatupang continued
IDR400,000 to become a favourite location, and thus pushed rents to move
forward. In some cases, rents were offered at IDR250,000 to
IDR300,000
IDR350,000/sq m/month. Nevertheless after 2014 2015, de-
mand for office spaces contracted, forcing landlords to adjust
rents to be more favourable to the market. Nowadays, landlords
IDR200,000 are quite cautious about the current slowing down, and thus
change the overall rental tariff in this area by as much as 20%.
IDR100,000
Average Asking Rents Based on Building Grade in
IDR0
Outside the CBD
Thamrin Sudirman Rasuna Mega Gatot Satrio IDR350,000
Kuningan Subroto
IDR300,000
Q2 2015 Q2 2016
Source: Colliers International Indonesia - Research IDR250,000
IDR200,000
Outside the CBD IDR150,000

Average Asking Rents in Outside the CBD
IDR100,000
IDR300,000
IDR50,000
IDR250,000
IDR0
IDR200,000 2010 2012 2014 2016YTD
Grade A Grade B Grade C All Classes

IDR150,000
IDR100,000
IDR50,000
IDR0
2010 2012 2014 2016YTD
Outside CBD TB Simatupang

Service Charges Outside the CBD
CBD Service Charges in Outside the CBD
Service Charges in the CBD IDR150,000
IDR150,000
IDR120,000
IDR120,000
IDR90,000
IDR90,000
IDR60,000
IDR60,000
IDR30,000
IDR30,000
IDR0
Grade A Grade B Grade C
IDR0
Premium Grade A Grade B Grade C Source: Colliers International Indonesia - Research
Source: Colliers International Indonesia - Research The average service charge outside the CBD climbed 9.3% YoY
to IDR58,037/sq m/month. Since there is only a few Grade-A
As of Q2 2016, average service charge increased 3.9% YTD office buildings outside the CBD, the figure presented may not
and was recorded at IDR80,2015/sqm/month. Due to the influx well represent the market. This is why the service charge for
of newly operating office buildings, the average service charge Grade-A buildings is below IDR100,000/sq m/month only. Al-
costs for Grade-A buildings registered the highest YTD growth, though lower-grade buildings reveal higher service charges, the
compared with other grades. As of Q2 2016, service charge was overall occupancy cost (base rental and service charge) are still
recorded at IDR81,744/sq m/month for Grade-A office buildings. more expensive in higher-class buildings.
Lower grade offices may charge higher maintenance tariff. In TB Simatupang, service charges increased 4.6% QoQ and
Some Grade-C office buildings in Rasuna Said ask for a more reached IDR62,900/sq m/month. Several office buildings have
expensive price. However, the overall occupancy costs (base introduced a new tariff with increment starting from IDR5,000
rent and service charge) will be in line with the class and quality to IDR15,000.
of the buildings.

Strata-title Office Average Asking Prices at New and Future Office
Buildings
Pre-Committed Take-up Rates of Office Buildings
For Sale in the CBD (2015 2018)
TB
Simatupang
2018F
Outside the
CBD
2017F
CBD
2016F
IDR0
IDR80,000,000
IDR60,000,000
IDR40,000,000
IDR20,000,000
IDR100,000,000
2015
0 70,000 140,000 210,000 280,000 350,000

sq m Source: Colliers International Indonesia - Research
Space Absorbed Vacant Space
Source: Colliers International Indonesia - Research The sales volume of strata-title office spaces in 2016 2018
increased around 6% QoQ. The absorption brought the aver-
Pre-Committed Take-up Rates of Office Buildings age pre-committed take-up rate to reach around 60% of the
total office space for sale (strata-title office) in 2016 2018.
For Sale in Outside the CBD (2015 2018)
Meanwhile, for a shorter period, pre-committed take-up rate
of offices for sale in 2016 2017 achieved around 80% as of
Q2 2016. Two future office buildings in Mega Kuningan sold a
2018F
substantial amount of office spaces, which helped the overall
sales performance.
2017F Increasing sales triggered office prices of future office build-

ings in the CBD to rise to IDR61.3 million/sq m or grew 16.7%
YTD. Currently, the asking prices at future strata-title office
buildings are between IDR40 million and IDR70 million/sq m.
2016F
We also noted that some unoccupied spaces in existing office
buildings and buildings under construction are offered at the
secondary market between IDR40 million and IDR95 million/
2015 sq m.
The total area of projected strata-title offices outside the CBD

0 50,000 100,000 150,000 200,000 250,000 was recorded below 400,000 sq m by 2018, of which 65% has
sq m already been sold. However, we only recorded a small absorp-
Space Absorbed Vacant Space tion of below 3,000 sq m QoQ. The slowdown in sales held
asking prices to stay at IDR29 million/sq m.
Meanwhile, prices were relatively flat in TB Simatupang YoY

and registered between IDR28 million and IDR38 million/sq m.

Concluding Thought
From a tenants perspective, we have started seeing a sign of
recovery highlighted by mounting office enquiries, despite being
yet in relatively modest volume. Potential tenants are quite ea-
ger to execute transactions, but such transactions will typically
be in considerable sizes, between 100 and 400 sqm. There are
quite varied enquiries from different sectors, as we have not yet
seen any specific business sector dominating office enquiries.
As mentioned above, occupancy rates relatively slowed down.
Therefore, even though we have begun to observe increasing
leasing activities, transactions typically come from relocation
activities and a few relocations with space expansion or even
space reduction. This in and out activity did not really help
fuel the overall occupancy level, because of fewer expansion
activities from existing tenants or new investors.
Having said that, we should be more optimistic towards the

market condition over the next semester, provided that econ-
omy will continue to grow as projected. We also hope that the
government is committed to accelerating economy growth by
implementing economic deregulation packages including REITs,
materialising all the infrastructure plans and getting the green
light from the parliament to execute tax amnesty regulation.
Going forward, oversupply condition remains the main concern.

We believe, however, that the new plan to build more office
buildings would only happen after 2019, considering that many
landlords are already fully aware about the current situation.

Quarterly Report
JAKARTA | OFFICE
Q2 2016 Accelerating success.
Apartment Sector APARTMENT FOR STRATA-TITLE
Supply
By the end of the second quarter of 2016, cumulative supply
of strata-title apartments in Jakarta had grown at a moderate
Supply pace of 2.9% QoQ, equal to 12.4% YoY, to a record 167,697
Jakarta will see an additional 15,442 units for the units. During this quarter, the market received 4,777 new units
remainder of 2016 and a total 25,222 units in 2017. from the handover of eight apartment towers in five projects,
including The Green Pramuka, Royal Springhill, Bassura City,
Demand Casablanca East Residence and 19 Avenue. In terms of market
Although the market saw an increase in launching segment, middle-lower class apartments dominate the current
activity, buying sentiment has remained lukewarm; additional supply at 86.4% of three projects located in non-
investors and end-users are holding their plans to prime areas.
buy apartments in view of the current economic
slowdown. We opine that take-up rates will continue Green Pramuka City (Orchid and Penelope Towers) and Royal
to hover at between 86% and 87%. Springhill (Bouvardia and Bulgari Towers) are both located
in Central Jakarta; however they are targeting different mar-
Rent ket segments, i.e. middle-low and middle-upper, respectively.
Given a drop in the expatriate community, we expect Meanwhile, East Jakarta continued to see new middle-low
asking rental rates will remain unchanged until the class projects from the opening of Bassura City (Edelweiss
end of 2016. Tower) and Casablanca East Residence (Dallas & Casablanca
Towers). In West Jakarta, 338 additional units came from the
Price completion of a mid-rise apartment project, 19 Avenue (Tower
We predict an 9% to 11% increase in the average A). 19 Avenue was previously a stalled Rusunami (low-cost
asking price for apartments for sale due to the high- apartment) project called Orchard Place Residence, developed
er prices quoted by future apartment projects which by PT Bintang Milenium Indonesia. It was acquired by Marga-
will open by the end of the year. hayu Land, who changed the name. Targeting the same low
segment, fully furnished 19 Avenue (Tower A) apartments are
offered at prices ranging from IDR400 million to IDR600 mil-
lion per unit.
As of the middle of 2016, about 40.6% of the 26,583 projected

units which will be completed this year have been handed over,
leaving about 15,793 units to be handed over in the next se-
mester.
List of Completed Apartment Projects as of Q2 2016
Name of development location region developer units
The Green Pramuka (Tower Orchid & Penelope) Jl. Jenderal Ahmad Yani Central Jakarta PT Duta Paramindo 2,000
The Royal Springhill (Tower Bouvardia & Bulgari) Jl. Spring Hill Residence Kemayoran Central Jakarta Springhill Golf Group 312
Bassura City (Tower Edelweiss) Jl. Basuki Rahmat East Jakarta Synthesis Development 1,000
Casablanca East Residence (Tower Dallas & Jl. Pahlawan Revolusi East Jakarta Binakarya Propertindo 1,127
Casablanca)
19 Avenue Apartment (Tower A) Daan Mogot West Jakarta Margahayu Land 338
Total 4,777
Strata-title Apartment Annual Supply same period in 2015. This suggests that developers are ge-
nerally quite cautious over the current market condition, with
30,000 considerable supply going forward and, to some extent, slow
absorption.
25,000
East Jakarta hosts about 87% of the total newly introduced/
launched units from two projects: East 8 and Prajawangsa
20,000 City. East 8, developed by Karya Cipta Group, is targeted at the
middle-lower segment, particularly workers in the surrounding
15,000 areas. East 8 apartment is located in a settled residential area
and will benefit from easy accessibility to public transportation,
including the future LRT and the existing Jagorawi toll road.
10,000 With a similar target market, Prajawangsa City, developed by
Synthesis Development, together with St. Carolus Vereeniging,
5,000 claims to be an improvement on their previous project, Bassura
City, with bigger units and more green space.
0
Another new project by Synthesis Development is Samara
2020F
Suites, which was previously launched as The Residence at Ga-

2017F
2012
2014
2015
2013
2019F
2018F
2016F
tot Subroto, which offered bigger units and higher prices. Sub-
sequently, the developer revised the concept, including the floor
plan, unit size and pricing strategy, in order to meet the budget
of buyers. As of the end of May, 60 units in Samara Suites have
Newly Launched Projects been booked. Another project located in a so-called expatri-
ate area, Lavish Residence Kemang, offers a single apartment
During this quarter, Jakartas apartment market saw a moderate tower and targets the middle-upper segment. Lavish Kemang
addition of newly launched/introduced projects. Four brand-new Residence is developed by PT Kemang Karya Utama, which has
projects with 5,946 units initiated pre-sale activities in Q2 2016 extensive experience in developing houses and townhouses for
and are expected to be completed in the next four years. The expatriates.
number of units being introduced/launched is 20% lower than the
List of New Introduced/Launched Projects in Q2 2016

Expected estimated price
Name of development LOCATION region total Units
completion time (idr/sq m)*
Prajawangsa City (8 towers) Jl. Raya Bogor, Cijantung East Jakarta 2020 IDR 11,350,000 4,000
East 8 (2 towers) Jl. Raya Lap. Tembak, Cibubur East Jakarta 2020 IDR 13,500,000 1,172
Samara Suites Jl. Gatot Subroto South Jakarta 2019 IDR 26,350,000 300
Lavish Kemang Residence Jl. Kemang Raya No.78A South Jakarta 2019 IDR 35,000,000 474
*) Price based on hard cash excludes VAT 10%

The total number of apartment units launched during 2Q 2016 Number of Apartment Units and Projects being
was 5,946. Introduced/Launched Every Quarter
The mood in the apartment market has been subdued, as re- 7,500 15
flected in the limited number of newly introduced/launched
projects in recent quarters. In general, some developers have
6,000 12
opted to postpone the launch date of their projects due to a
lack of confidence in the current market situation. Moreover, the
overall Indonesian economy faces a number of downside risks, 4,500 9
such as slow economic growth and lowered consumer confi-
dence, which impacts project decisions by developers.
3,000 6
1,500 3
0 0
Q4 2015
Q2 2016
Q2 2015
Q3 2014
Q3 2015
Q1 2014
Q1 2016
Q4 2014
Q2 2014
Q1 2015
#Units #Projects
New Pipeline
Apartment name location region developer #units Status
2016
The Green Pramuka (Tower Orchid) Jl. Jenderal Ahmad Yani Central Jakarta PT Duta Paramindo 1,000 Built
The Green Pramuka (Tower Penelope) Jl. Jenderal Ahmad Yani Central Jakarta PT Duta Paramindo 1,000 Built
The Royal Springhill (Bouvardia Tower) Jl. Spring Hill Residence Ke- Central Jakarta Springhill Golf Group 120 Built
mayoran
The Royal Springhill (Bulgari Tower) Jl. Spring Hill Residence Ke- Central Jakarta Springhill Golf Group 192 Built
mayoran
Casablanca East Residence (Tower Dallas) Jl. Pahlawan Revolusi East Jakarta Binakarya Proper- 408 Built
tindo Group
Casablanca East Residence (Tower Casa- Jl. Pahlawan Revolusi East Jakarta Binakarya Proper- 719 Built
blanca) tindo Group
Bassura City (Tower Edelweiss) Jl. Basuki Rahmat East Jakarta Synthesis Develop- 1,000 Built
ment
Bassura City (Tower Dahlia) Jl. Basuki Rahmat East Jakarta Synthesis Develop- 1,000 Built
ment
Green Bay Pluit (Sea View) Jl. Pluit Karang Ayu North Jakarta Agung Podomoro 2,072 Built
Group
Kemang Village (The Bloomington) Jl. P Antasari South Jakarta Lippo Karawaci 150 Built
Four Winds Jl. Permata Hijau Raya No.1 South Jakarta PT.Tri TirtaPermata 140 Built
Metro Park Residence Kebon Jeruk West Jakarta Agung Podomoro 1,451 Built
Group
Madison Park Tanjung Duren West Jakarta Agung Podomoro 1,200 Built
Group
19 Avenue Apartment 9 (Tower A) Daan Mogot West Jakarta Margahayu Land 338 Built
continued

continuation
The Grove (Empyreal + Masterpiece) Jl. HR Rasuna Said CBD Bakriland Develop- 438 Under-construction
ment
The Residence (CWJ 2) Jl. Prov Dr Satrio Kav 6, Kun- CBD Ciputra 119 Under-construction
ingan
The Orchad Satrio (CWJ 2) Jl. Prov Dr Satrio Kav 6, Kun- CBD Ciputra 349 Under-construction
ingan
T - Plaza Residence (Tower A) Jl. Penjernihan I Kav.1 Pejom- Central Jakarta PT. Prima Kencana 321 Under-construction
pongan
Elpis Residence Gunung Sahari Central Jakarta Sioeng Group 790 Under-construction
The Green Pramuka (Tower Scarlet) Jl. Jenderal Ahmad Yani Central Jakarta PT Duta Paramindo 1,000 Under-construction
The H Residence Kemayoran (Amethyst) Jl. Rajawali Selatan Central Jakarta Hutama Karya 800 Under-construction
Realtindo
Bassura City (Tower Cattleya) Jl. Basuki Rahmat East Jakarta Synthesis Develop- 600 Under-construction
ment
Bassura City (Tower Alamanda) Jl. Basuki Rahmat East Jakarta Synthesis Develop- 600 Under-construction
ment
Sentra Timur Residence (Tower Tosca) Pulo Gebang East Jakarta Bakriland Develop- 133 Under-construction
ment
East Park Apartment (Tower C) Jl. KRT Radjiman East Jakarta PT. Cakra Sarana 550 Under-construction
Persada
Teluk Intan (Tower Saphire) Jl. Teluk Gong North Jakarta PT Trika Bumi 1,100 Under-construction
Pertiwi
Pluit Seaview (Tower Belize) Pluit North Jakarta Binakarya Proper- 557 Under-construction
tindo Group
Senopati Suites 2 Jl. Senopati South Jakarta Mahkota Asia Graha 81 Under-construction
LA City Apartment (Tower A) Jl. Raya Lenteng Agung, Jaga- South Jakarta Pancanaka Samaktha 980 Under-construction
karsa
Nine Residence Warung Buncit South Jakarta Lippo Karawaci 246 Under-construction
La Venue - North Tower Jl. Pasar Minggu South Jakarta PT Bintang Rajawali 253 Under-construction
(Sinar Mas Group)
Senopati Suites 3 Jl. Senopati South Jakarta Mahkota Asia Graha 54 Under-construction
1 Park Avenue (3 Towers) Jl. KHM Syafi'I Hadzami (terusan South Jakarta Intiland 279 Under-construction
gandaria)
Izzara Apartment (South and North Tower) TB. Simatupang South Jakarta Grage Group 542 Under-construction
Apartment Pejaten Park Residence Jl. Warung Buncit Raya No.21 South Jakarta Bahama Group 560 Under-construction
Kebayoran Icon Jl. Ciledug Raya South Jakarta Tamara Land 256 Under-construction
One Casablanca Residence Jl. Pal Batu South Jakarta Forza Land 215 Under-construction
Woodland Park (Mahogany Tower) Jl. Pahlawan Kalibata South Jakarta PT. Pardika Wisthi 218 Under-construction
Sarana
St Moritz (The New Ambassador Suite Jl. Puri Indah Kembangan West Jakarta Lippo Karawaci 200 Under-construction
Tower)
St. Moritz (New Presidential Tower) Jl. Puri Indah West Jakarta Lippo Karawaci 159 Under-construction
The Nest Apartment Jl. Raden Saleh Raya, Meruya West Jakarta PT. Karya Cipta 1,100 Under-construction
Utara Sukses Selaras
Green Park View (Tower Gardenia) Jl. Daan Mogot West Jakarta PT. Inten Cipta Sejati, 1,200 Under-construction
Cempaka Group
Belmont Residence (TowerAthena) Jl. Meruya Ilir West Jakarta Gapura Prima 193 Under-construction
Puri Mansion Apartment (Tower Amethyst) Jl. Lingkar Luar Barat, Puri West Jakarta Agung Sedayu Group 900 Under-construction
Kembangan
Paradise Mansion (2 tower) Jl. Paradise Boulevard Selatan West Jakarta Palm Group 1,000 Under-construction
continued

continuation
2017
Sudirman Suites Jl. Sudirman CBD Pikko Group 380 Under-construction

Domaine Jl. Jend. Sudirman Kav 1 CBD Lyman Group 186 Under-construction
Verde Two (Tower East) Jl. Rasuna Said CBD Farpoint Realty 182 Under-construction
Anandamaya Residences (3 towers) Jl. Jend Sudirman CBD Hongkong Land 500 Under-construction
Menteng Park Jl. Cikini Raya No.79 Central Jakarta Agung Sedayu Group 756 Under-construction
Holland Village Cempaka Putih Central Jakarta Lippo Karawaci 400 Under-construction
Royal Suites Kemayoran Central Jakarta Springhill Golf Group 450 Under-construction
The Green Pramuka (Tower Nerine) Jl. Jenderal Ahmad Yani Central Jakarta PT Duta Paramindo 1,000 Under-construction
Green Signature Apartment Jl. MT. Haryono East Jakarta KSO Fortuna Indone- 800 Under-construction
sia (Pikko)
Podomoro Park Jl. I Gusti Ngurah Rai, Klender East Jakarta Agung Podomoro 3,000 Under-construction
Group
Sentra Timur Residence (Tower Brown) Pulo Gebang East Jakarta Bakriland Develop- 605 Under-construction
ment
Bassura City (Tower Jasmine) 2 tower Jl. Basuki Rahmat East Jakarta Synthesis Develop- 2,000 Under-construction
ment
Bassura City (Tower Heliconia) Jl. Basuki Rahmat East Jakarta Synthesis Develop- 700 Under-construction
ment
Pluit Seaview (Tower Ibiza) Pluit North Jakarta Binakarya Proper- 500 Under-construction
tindo Group
Pluit Seaview (Tower Bahama) Pluit North Jakarta Binakarya Proper- 650 Under-construction
tindo Group
Regatta London Tower Jl. Pantai Mutiara North Jakarta Intiland 186 Under-construction
Pakubuwono Terrace Grand Tower Kebayoran Lama South Jakarta PT. Selaras Mitra 435 Under-construction
Sejati
District 8 (Tower Eternity) Jl. Senopati South Jakarta Agung Sedayu 400 Under-construction
District 8 (Tower Infinity) Jl. Senopati South Jakarta Agung Sedayu 280 Under-construction
Lexington Rersidence Pondok Pinang South Jakarta Cowwel Develop- 275 Under-construction
ment
The Aspen Peak at Admiralty (Tower C) Jl. Fatmawati South Jakarta PT. Harmas Jalas- 322 Under-construction
veva
Sapphire Residence Lebak Bulus South Jakarta PT. Bangun Lintas 37 Under-construction
Shafira
La Terrasse Jl. Deplu Raya No.12 South Jakarta Cowell Development 111 Under-construction
The Foresque Pasar Minggu, Ragunan South Jakarta PT Griya Karunia 660 Under-construction
Sejahtera (Binakarya
Propertindo Group)
The Langham Residences Senopati South Jakarta Agung Sedayu Group 57 Under-construction
Antasari Heights (One Otium Residence) Jl. Pangeran Antasari No.8 South Jakarta PT Radinka Quatro 360 Under-construction
Land
The Batik @ Pejaten Jl. Siaga Raya South Jakarta Alam Kencana 137 Under-construction
La Foret Vivante Jl. Limo, Permata Hijau South Jakarta PT. Mahkota Properti 253 Under-construction
Indo Permata
Selatan 8 (Tower Sultan) Kebayoran Lama South Jakarta Karya Cipta Group 336 Under-construction
The Hamilton Jl. KHM Syafi'I Hadzami South Jakarta Intiland 112 Under-construction
Puri Mansion Apartment (Tower Amethyst) Jl. Lingkar Luar Barat, Puri West Jakarta Agung Sedayu Group 900 Under-construction
Kembangan
Puri Orchad (3 Tower) Jl Raya Adicipta West Jakarta PT Adicipta Graha 3,000 Under-construction
Kencana (Serenity
Group)
Maqna Residence Jl. Meruya Ilir No. 88 West Jakarta PT. Graha Meruya 312 Under-construction
Veranda Jl. Pesanggrahan Raya, Kem- West Jakarta PT. Mutirara Puri 174 Under-construction
bangan Indah
continued

continuation
Vittoria Residence (3 tower) Jl. Daan Mogot West Jakarta PT. Duta Indah 1,100 Under-construction
Kencana
Wang Residence Jl. Panjang No 18 West Jakarta PT. Citicon Proper- 250 Under-construction
tindo
Taman Anggrek Residence (6 towers) Tanjung Duren West Jakarta Agung Sedayu 3,000 Under-construction
19 Avenue Apartment (Tower B) Daan Mogot West Jakarta Margahayu Land 416 Under-construction
Sycamore Suite Puri Botanical, Joglo West Jakarta Jakarta Setiabudi 125 Under-planning
International
2018
Gayanti City (2 Towers) Jl. Gatot Subroto CBD PT Buana Pasifik 318 Under-construction
International
Verde Two (Tower West) Jl. Rasuna Said CBD Farpoint Realty 152 Under-construction
Lavie Jl. Denpasar Raya CBD Wilsor Group 302 Under-construction
South Hill Jl. Denpasar Raya CBD Tan Kian 611 Under-construction
Le' Parc Jl. Thamrin CBD PT. Putragaya 100 Under-construction
Wahana
Regent Residences (tower 1) Semanggi CBD PT. Kencana Graha 100 Under-construction
Global
The Hundred Residence Mega Kuningan CBD PT. Farpoint Realty 100 Under-construction
Indoneasia
The Elements Epicentrum (2 Towers) Rasuna Said CBD Sinar Mas Land 372 Under-construction
Capitol Suites Jl. Prapatan Raya Central Jakarta The Capitol Group 327 Under-construction
Holland Village (Phase II) Cempaka Putih Central Jakarta Lippo Karawaci 230 Under-construction
Signature Park Grande Jl. MT. Haryono East Jakarta KSO Fortuna Indone- 1,100 Under-construction
sia (Pikko)
Sahid Garden Residence Ciracas East Jakarta Sahid Group 476 Under-planning
Gold Coast Apartment (Atlantic Tower) Pantai Indah Kapuk North Jakarta Agung Sedayu 568 Under-construction
Regatta Apartment (Tower New York) Pantai Mutiara North Jakarta Intiland 186 Under-construction
Sedayu City (Tower Melbourne) Jl. Pegangsaan Dua Raya North Jakarta Agung Sedayu 912 Under-planning
Sedayu City (Tower Darwin) Jl. Pegangsaan Dua Raya North Jakarta Agung Sedayu 936 Under-planning
The Kensington Royal Suites (4 Tower) Kelapa Gading North Jakarta Summarecon 790 Under-construction
Gold Coast Apartment (Bahama Tower) Pantai Indah Kapuk North Jakarta Agung Sedayu 600 Under-construction
Gold Coast Apartment (Carribean Tower) Pantai Indah Kapuk North Jakarta Agung Sedayu 600 Under-construction
Gold Coast Apartment (Honolulu Tower) Pantai Indah Kapuk North Jakarta Agung Sedayu 600 Under-construction
Grand Marina Ancol Ancol North Jakarta PT. Bangun Setia 672 Under-planning
Cipta (Jaya Ancol)
Bellevue Place MT Haryono, Tebet South Jakarta Gapura Prima 240 Under-construction
The Aspen Peak at Admiralty (Tower D) Jl. Fatmawati South Jakarta PT. Harmas Jalas- 322 Under-construction
veva
Casa Grande Residence 2 (Tower Angelo) Jl. Casablanca South Jakarta Pakuwon Group 350 Under-construction
Casa Grande Residence 2 (Tower Bella) Jl. Casablanca South Jakarta Pakuwon Group 350 Under-construction
Casa Grande Residence 2 (Tower Chianti) Jl. Casablanca South Jakarta Pakuwon Group 350 Under-construction
Pondok Indah Residences (3 Towers) Pondok Indah South Jakarta Metro Pondok Indah 880 Under-construction
Selatan 8 (Tower Prabu) Jl. Raya Ulujami South Jakarta Karya Cipta Group 344 Under-construction
45 Antasari (2 Tower) Antasari South Jakarta Cowell Development 1,924 Under-construction
Arzuria Apartment Jl. Tendean South Jakarta Tolaram Group 210 Under-construction
Pakubuwono Spring (2 towers) Jl. Teuku Nyak Arief No.9 South Jakarta PT. Simprug Mah- 545 Under-construction
kota Indah (Agung
Podomoro Group)
Branz Simatupang (2 tower) TB. Simatupang South Jakarta Tokyuland 381 Under-construction
continued

continuation
Synthesis Residence Kemang (3 towers) Jl. Ampera Raya No.17 South Jakarta PT. Synthesis Devel- 1,100 Under-construction
opment
The Ease Brawijaya Jl. Taman Brawijaya III Kebay- South Jakarta PT. Bhakti Usaha 54 Under-planning
oran Baru Dinamika
Gianetti Apartment Jl. Kebon Jeruk Raya, Kemang- West Jakarta Bangun Investa 500 Under-construction
gisan Graha
Gallery West Jl. Panjang No 5 West Jakarta AKR 280 Under-construction
Ciputra International Puri Indah (Tower Jl. Lingkar Luar Barat West Jakarta Ciputra 412 Under-construction
Amsterdam)
Grand Madison Park Tanjung Duren West Jakarta Agung Podomoro 300 Under-construction
Group
Citra Lake Suites (Tower Rosewood) Jl. Raya Kresek West Jakarta Ciputra Group 104 Under-construction
Citra Lake Suites (Tower Greenwood) Jl. Raya Kresek West Jakarta Ciputra Group 126 Under-construction
Citra Lake Suites (Tower Oakwood) Jl. Raya Kresek West Jakarta Ciputra Group 117 Under-construction
Citra Lake Suites (Tower Sherwood) Jl. Raya Kresek West Jakarta Ciputra Group 122 Under-construction
Aerium Taman Permata Buana (2 towers) Taman Permata Buana West Jakarta Sinar Mas Land and 491 Under-planning
Itochu
Ciputra International Puri Indah (Tower Jl. Lingkar Luar Barat West Jakarta Ciputra 335 Under-construction
Barcelona)
Puri Mansion Apartment (Tower Crystal) Jl. Lingkar Luar Barat, Puri West Jakarta Agung Sedayu Group 700 Under-construction
Kembangan
West Vista (2 towers) Jl. Lingkar Luar Barat No.8, Duri West Jakarta PT. Harapan Global 2,840 Under-construction
Kosambi Niaga
Citra Living Apartment (Somerset Tower) Jl. Citra 7, Kalideres West Jakarta Citra Mitra Graha 312 Under-construction
KSO
Citra Living Apartment (Orchad Tower) Jl. Citra 7, Kalideres West Jakarta Citra Mitra Graha 312 Under-construction
KSO
Citra Living Apartment (Newton Tower) Jl. Citra 7, Kalideres West Jakarta Citra Mitra Graha 312 Under-construction
KSO
2019
The Suite (W Hotel Tower) Jl. Prof. Dr. Satrio CBD Ciputra 200 Under-planning
The Residences at The St. Regis Jakarta Jl. H.R Rasuna Said CBD Rajawali Property 164 Under-construction
Group
Arandra Residence (was Sentosa Resi- Jl. Cempaka Putih Raya No.1 Central Jakarta Gamaland 687 Under-construction
dence)
Menara Jakarta (Tower Equinox) Kemayoran Central Jakarta Agung Sedayu 396 Under-construction
Menara Jakarta (Tower Azure) Kemayoran Central Jakarta Agung Sedayu 860 Under-construction
The Linq Kemayoran (2 towers) Kemayoran Central Jakarta KG Global 1,020 Under-planning
Menteng 37 Jl. Menteng 37 Central Jakarta Pikko Group & Wijaya 99 Under-planning
Wisesa (JV)
The H Residence Kemayoran (Lotus) Jl. Rajawali Selatan Central Jakarta PT Hutama Karya 252 Under-planning
Realtindo
Jaya Ancol Seafront - Oceana Tower Pademangan, Ancol North Jakarta Jaya Ancol 524 Under-construction
Orient Residence Jl. Yos Sudarso, No 76 North Jakarta PT Tri Raton Mega 225 Under-planning
Fatmawati City Center - Corona Park Suite Fatmawati South Jakarta Agung Sedayu 620 Under-planning
Tower
Royal Park at Kebayoran (Arlington Tower) Jl. Cileduk Raya 18, Cipulir South Jakarta PT. Trixindo Selaras 630 Under-planning
Ratu Prabu 3 Residences TB. Simatupang South Jakarta PT Ratu Prabu Tiga 61 Under-construction
Samara Suites (was The Residence Gatot Jl. Gatot Subroto South Jakarta Synthesis Develop- 300 Under-planning
Subroto) ment
Lavish Kemang Residence Jl. Kemang Raya No.3, Bangka South Jakarta PT Kemang Karya 474 Under-planning
Utama
Green Sedayu Apartment Jl. Kamal Raya, Cengkareng West Jakarta Agung Sedayu 644 Under-planning
(Tower Pasadena)
continued

continuation
2020
Regatta Tokyo Tower Jl. Pantai Mutiara North Jakarta Intiland 276 Under-planning
Prajawangsa City (8 towers) Jl. Raya Bogor, Cijantung East Jakarta Synthesis Develop- 4,000 Under-planning
ment
East 8 (2 towers) Cibubur East Jakarta Karya Cipta Group 1,172 Under-planning
Fatmawati City Center(5 towers) Fatmawati South Jakarta Agung Sedayu 2,080 Under-planning
Green Sedayu Apartment (Tower New Jl. Kamal Raya, Cengkareng West Jakarta Agung Sedayu 920 Under-planning
York)
Demand Take-up Comparison between Existing and Under-

Construction Projects
No significant changes in the apartment market were noted
in 2Q 2016. Although the market saw some improvement in Q2 2015 Q1 2016 Q2 2016 QoQ YoY
launching activity, buying sentiment remained lukewarm. Sales Existing 95.80% 96.20% 96.20% 0.00% 0.40%
remained quiet as investors and end-users have put their plans Under-construction 69.00% 67.00% 68.10% 1.10% -0.90%
to buy apartments on hold in view of economic conditions. Pro- Average (all) 85.90% 86.20% 86.70% 0.50% 0.90%
spective buyers continued to tread with caution and be mindful Source: Colliers International Indonesia - Research
with their purchases in light of recent market conditions, partic-
ularly delays in construction progress and project cancellations,
which were further worsened by the lack of regulations protect- Take-up Rate Changes in Different Locations in Jakarta
ing buyer and developer rights. Overall, the average take-up rate Q2 2015 Q1 2016 Q2 2016 QoQ YoY
only rose by less than 1% QoQ and YoY.
CBD 96.00% 94.00% 94.50% 0.50% -1.50%
South Jakarta 88.00% 85.30% 85.90% 0.60% -2.10%
A combination of creative marketing strategies (with gimmicks,
etc.) and a limited number of newly introduced/newly launched Non-prime area 83.40% 85.40% 85.90% 0.50% 2.50%
projects have helped lift, or at least maintain, the overall take-up Source: Colliers International Indonesia - Research
rate performance of the apartment market in Jakarta. The un-
revealed fact behind the vigorous sales performance in certain Thus far, foreign ownership regulations have not changed dras-
projects is insider trading with buyers who could be sharehold- tically because they still have to comply with the Agrarian Law,
ers or top executives of the company. Though small in number, which limits the scope of ownership. Foreigners can only buy
such transactions helped lift overall sales performance. Another property under a Hak Pakai (Right to Use) title, and in order
way to boost sales is to offer buy-back and cash-back guaran- to do that they have to hold a legal stay permit in Indonesia.
tees, i.e. refunding the money to the buyer when the handover Recently, after the issuance of revised Government Regulation
schedule does not meet the agreed timeline. number 103/2015, the government (Head of the National Land
Agency) introduced the implementation of the regulation No. 13
Developers have collaborated with insurance companies to of 2016 on Procedures for Granting, Relinquishing and Trans-
provide protection for their apartment units with the benefit of ferring Ownership of Residential Property for Foreign Citizens
100% cash-back after 15 claim-free years. As long as buyers Domiciled in Indonesia. This new regulation makes it clearer
dont make a claim on their apartment insurance (also called that foreign citizens are only allowed to own high-end residen-
Building Insurance) policy for 15 years, they will receive a full tial properties (either apartment or landed house) with various
refund of all of the Building Insurance premiums that they have minimum thresholds based on the property type and location.
paid. Previously, Indonesian authorities announced in 2Q 2015 that
foreigners would be allowed to purchase apartments or houses
In terms of area, under-construction projects in the CBD re- which cost at least IDR10 billion/unit (roughly US$740,000)
corded the highest increase in overall take-up rate, at 2.5%, under a right-to-use title. Nonetheless, even with these govern-
compared to 1.1% and 1% in South Jakarta and non-prime areas, ment efforts to ease regulations on foreign ownership, the main
respectively. challenge facing apartment sales remains: they have to be built
on Right to Use land that is unconventional in the local market.

The Price Threshold for Foreign-Owned Houses and Quarterly Asking Prices of Apartments in Three
Apartments in Indonesia Regions
selling price (in idr) 60,000,000
location
House (>) apartment (>)
50,000,000
Jakarta 10 billion 5 billion
Banten 5 billion 1 billion
40,000,000
West Java 5 billion 1 billion
IDR/sq m
Central Java 3 billion 1 billion
30,000,000
Yogyakarta 3 billion 1 billion
East Java 5 billion 1.5 billion 20,000,000
Bali 3 billion 2 billion
NTB 2 billion 1 billion 10,000,000
North Sumatera 2 billion 1 billion
East Kalimantan 2 billion 1 billion 0
Q3 2012
Q3 2014
Q1 2012
Q3 2015
Q1 2014
Q1 2016
Q3 2013
Q1 2015
Q1 2013
South Sumatera 2 billion 1 billion
Other location 1 billion 750 million
Source: Ministerial Regulation No.13 of 2016
CBD South Jakarta Non-Prime Area
Another appealing effort to bolster the current sluggish market Source: Colliers International Indonesia - Research
has come through relaxation of LTV regulations. The Central

Bank (Bank Indonesia) has stepped in to support the domestic As of Q2 2016, the average asking price of apartments in Ja-
economy and property market and, in particular, is likely to boost karta was recorded at IDR31 million/sq m (excluding VAT), a
apartment sales going forward. Bank Indonesia is planning to modest increase of 0.5% QoQ and 9% YoY. In South Jakarta,
review loan-to-value (LTV) regulations to boost the property apartment prices rose by 1.1% QoQ and 11.3% YoY, the highest
market in 3Q 2016. Under the easing policy, the Central Bank rate compared to the CBD and other non-prime areas. South
will reduce the amount of down payments in a bid to spur credit Jakarta remains a desirable location to live in, as indicated by
growth and boost economic growth. Another possible measure the sales improvement during the reviewed quarter. In addition,
would let homeowners take out loans to purchase a second some developers raised selling prices because their projects are
home off the plan, or one that is under pre-construction. This approaching handover. The CBD still has the highest apartment
relaxation would provide a tailwind to the property sector, par- prices, at IDR48.3 million/sq m, an increase of 0.9% compared
ticularly the apartment market, if it is fully materialised. Never- to the previous quarter, while non-prime areas posted the low-
theless, Bank Indonesia has repeatedly emphasised that it will est QoQ growth, 0.7%, to IDR23.3 million/sq m, mainly because
continue to closely monitor the market and enforce policies to the newly introduced projects in East Jakarta are offered at a
prevent the property market from overheating, which could lead lower price than the market average.
to a bubble. It will also maintain a prudent policy to keep non-
performing loans below 5% of total loans.
Apartment Price Changes in Jakarta Based on Area (in
IDR/sq m)
Asking Price Q2 2015 Q1 2016 Q2 2016 QoQ YoY
CBD 44,135,684 47,816,125 48,246,435 0.90% 9.30%
Overall, the prices of apartments in Jakarta have been relatively
South Jakarta 32,713,013 36,028,156 36,421,523 1.10% 11.30%
flat, as most projects have maintained prices in order to attract
buyers in this softening market situation. Newly launched or Non-prime Area 21,285,155 23,147,612 23,300,386 0.70% 9.50%
introduced projects are offered at a lower price compared to the Average 28,442,570 30,840,637 31,008,439 0.50% 9.00%
average market price, which may hamper further price growth. Source: Colliers International Indonesia - Research
To a greater extent, developers are quite concerned over the
weakened purchasing power of general consumers, which is
reflected in the latest data from the Statistics Bureau Indonesia,
where GDP only grew 4.92% in the first quarter of 2016, slower
than the estimate of slightly above 5%. Therefore, in order to
cope with such a situation, developers have mainly played the
role of a bank by providing installment schemes as their default
payment method. Moreover, in some cases, developers have of-
fered additional discounts, ranging from 3% to 5%, depending
on the installment period, meaning that longer installments re-
ceive a smaller discount.

APARTMENT FOR LEASE As there was no change in the number of existing apartments
for lease, the distribution composition remains the same as well,
with the majority of projects concentrated in the CBD and South
Jakarta, representing around 44% and 35%, respectively. By
Supply grade, most apartments for lease in Jakarta are classified as
middle-upper grade projects, followed by middle-lower grade,
No new supply was launched in Q2 2016, and the total stock with 73% and 14%, respectively. The middle-upper class seg-
of Jakartas apartments for lease remained at 8,780 units. ment, which is mostly dominated by serviced apartments, typi-
Nonetheless, the market is expecting to receive at least 890 cally features projects with better building maintenance and
new serviced apartment units in the next four years. The new high rental rates, while middle-lower class buildings mostly
projects will be largely operated by global serviced apartment consist of old non-serviced apartment projects located in non-
operators such as Oakwood Worldwide, Frasers Hospitality and prime areas
The Ascott Limited. The only local apartment operator is Lavish
Kemang Residence Serviced Apartment.
List of Future Supply Serviced Apartment in Jakarta

Beginning Year of
Name of Development Location Area #unit
Operation
Fraser Suites at Ciputra World 2 2017 Jl. Prof. Dr. Satrio CBD 200
Oakwood Premiere Jakarta at District 8 Senopati 2017 Senopati South Jakarta 378
Ascott Menteng Jakarta 2019 Menteng Central Jakarta 150
Fraser Residence Serenia Hills 2019 Cilandak, Lebak Bulus South Jakarta
TBA
Fraser Suites Kebon Melati 2019 Kebon Melati, Tanah Abang South Jakarta
TBA
Serviced Apartment at Lavish Kemang Residence 2020 Jl. Kemang Raya No.78 A South Jakarta 162
Distribution of Existing Apartments for Lease (by

Number of Units)
Occupancy
West
The falling number of mid- to junior-level expatriates relocating
to Jakarta has created a challenge for apartments on the lease
North Jakarta
Jakarta 6% market. On the other hand, in order to keep demand steady,
5% some serviced apartments have collaborated with Online Travel
Agents (OTA) such as Agoda and Booking.com to offset the
number of expats leaving the city. During the reviewed period,
the occupancy of serviced apartments increased modestly by
0.2%, while that of non-serviced apartments declined by 0.8%,
to 62.8% and 76.2%, respectively.
South CBD
Jakarta 44%
35%
Central
Jakarta
10%

Average Occupancy Rate of Apartment for Lease Average Rental Rate
in Jakarta
The majority of apartment for lease projects maintained rent
100%
tariffs at the same level this quarter. In general, new rental rates
90% introduced early in the year are valid until the end of the year.
80% Rental rates quoted in rupiah remained flat, while changes only
70%
took place in apartments which still quote rent in US dollars due
to the strengthening Indonesian rupiah against the US dollar
60%
during the period. As a result, the average rental rate of apart-
50% ments for lease in the CBD stayed at IDR374,061/sq m/month,
40% while rental tariffs for apartments for lease in South Jakarta,
30%
including non-prime areas, decreased by 1.4% from the previ-
ous period to IDR224,178/sq m/month.
20%
10% All in all, the average asking rental rate will be relatively stable
0% throughout the year, although the rental rate may fluctuate due
to rupiah depreciation/appreciation, since some operators still
Q4 2015
Q2 2016
Q2 2015
3Q 2014
Q3 2015
Q1 2014
Q1 2016
4Q 2014
Q2 2014
Q1 2015
use the floating rate conversion.
Serviced Apartment Non-Serviced Apartment

Average Rental Rate (in IDR/sq m) of Apartment for
Source: Colliers International Indonesia - Research Lease Based on Region
Q1 2016 Q2 2016 QoQ
The traditionally slow month of Ramadan (this June July) CBD 374,061 374,061 0.00%
saw a weakened number of inquiries on apartments for lease, South Jakarta (including non-prime 227,296 224,178 -1.40%
mainly because expatriates are the main market and their num- areas)
bers have fallen. The underlying issues behind this are longer Source: Colliers International Indonesia - Research
visa processing times and tightened housing allowances for
multinational companies. A number of multinational compa- Concluding Thought
nies have decided to rationalise their expenses by streamlin-
ing costs for housing allowances. In addition, the expiration of The outlook for Indonesias economy is expected to remain lack-
existing work contracts for a number of expatriates continued lustre in 2016, with growth forecast to range from 5% to 5.2%,
to bring the average occupancy rate down by 0.45% compared down from previous estimates of 5.2% to 5.6%. On the other
to the previous quarter, settling at 71.5%. This quarter, some hand, Standard & Poors (S&P) rating agency affirmed Indo-
newly completed serviced apartments in the CBD have report- nesias sovereign credit rating of BB+ with a positive outlook,
edly achieved relatively good occupancy performance as a re- leaving the economy one notch below investment grade. This
sult of various promotional efforts to attract tenants. Moreover, means that an upgrade is still likely in the near future.
some non-serviced apartments have had new inquiries from e-
commerce businesses coming to Jakarta. Meanwhile, since In our opinion, the apartment market will see gradual improve-
most of the apartments for lease in South Jakarta and non- ment in the upcoming quarters since the economic fundamen-
prime areas are old projects, tenants have been presented with tals show signs of stabilisation, inflation remains low and we are
alternative options, like renting in newly operating strata-title anticipating the tax amnesty law coming into effect. In addition,
apartments belonging to the individual owner. In this gloomy Bank Indonesia has launched easing moves, including cutting
rental market, most individual unit owners have come up with the BI rate by 25 bps to 6.5%, as well as macro prudential poli-
more flexible payment terms at more competitive rental rates cies that will relax the loan-to-value ratio for landed houses and
compared to both serviced and non-serviced apartments. apartments and are expected to boost credit demand and spur
economic activity. Nevertheless, the expectation of huge supply
going forward is the other main challenge for the apartment
Occupancy Rates of Apartment for Lease market in general. At the very least, the positive outlooks dis-
Q2 2015 Q1 2016 Q2 2016 QoQ YoY cussed above will not materialise in the short-term. The apart-
CBD 79.40% 69.10% 76.10% 6.90% -3.40%
ment market will need some time to stabilise and find equilib-
rium before taking off in the next one-two years.
South Jakarta 76.40% 72.00% 70.40% -1.60% -6.10%
Non-Prime area 70.00% 69.60% 68.00% -1.50% -2.00%

Expatriate Housing Market Overview

The expatriate housing market started to show signs of recov-
Sector ery during the first semester of 2016. A number of inquiries

came mostly from repeat corporate clients who sign one-year
contract extension (as opposed to the traditional two-year con-
tracts). Many expat employing companies are currently only
willing to commit to a maximum one-year contract and very
Forecast at a glance few of them are willing to accept two years rent in advance
even if the working permit of the employee has been issued for
a two year period. Furthermore, many landlords are willing to
Demand
negotiate less than one year lease extension due to the real-
Besides power related industries, we anticipate one
ization of the current market condition and the drastic drop in
of the driving factors creating demand for residential
inquiries for expat housing. In some cases occupiers are taking
property will be the infrastructure sector.
advantage of the situation and may relocate to other residential
projects that offer either lower rents or at least equal rents but
Rent with better amenities. Typically multinational companies prefer
Landlords are being forced to be more realistic about
their expat employees to reside in housing compounds rather
rental rates, increasing their marketing efforts and
than in stand alone houses for security reason. Residing within
being open to alternative rental models. In certain
a compound or in a serviced or regular apartment building al-
cases landlords are willing to negotiate and adjust
lows these companies to take advantage of security measures
the rental rate down by as much as 35% in order to
that are already in place. This is often the easier security solu-
lease their property rather than lose income by leav-
tion for both the employee and employer.
ing the units vacant.
Well-developed housing compounds such as Executive Para-
dise, Atmaya Residence and Astoria Residence continue to at-
tract a sound number of tenants and continue to maintain their
high occupancy despite the current market condition.
Executive Paradise is one of the largest housing complexes

which is developed on 20 hectares of land in Cilandak, South
Jakarta. This complex provides a relaxing and peaceful sanc-
tuary seemingly set away from traffic noise and air pollution
making it one of the most popular choices within the expat
community. , Situated right next to Executive Paradise, Astoria
Residence complex offers luxury houses featuring 4-5-bed-
rooms and each unit is equipped with a swimming pool and
ample living space. Developed specifically to service the expat
community, Astoria Residence tenants can also take advan-
tage of the club house and mini market located in the adjacent
Executive Paradise compound.
The rising supply of newly completed upscale individually- The plummeting global oil prices have pushed corporations in
owned apartments together with the reduction in the number this sector to restructure their operational cost, including bud-
of expatriates entering the country have been a major factor gets for their expatriates accommodation. This sector has ex-
in pushing landlords to offer more favorable rental rates and perienced a downward trend over the last few years and thus
more attractive contractual terms for tenants. Consequently, businesses have been forced to streamline their expenses.
landlords are being forced to be realistic about the rental rates, Budgets have been reduced therefore pressuring multination-
increasing their marketing efforts and being open to alterna- als to reduce the number of expatriate workers overseas or be
tive rental models. In certain cases the landlords are willing to more provident with the individuals that are currently in coun-
negotiate and adjust the rental rate down by as much as 35% in try. One of the ways this is being implemented is by searching
order to let their property rather than losing income by leaving for a more affordable accommodation. Currently finding vacant
the units vacant. houses and apartments for lease is not as challenging as in
previous years. Based on our data, during 2012 2013, the
The number of expatriates arriving (those being issued working vacancy rate of typical expatriate homes was below 10 percent,
permits) has yet to recover. According to data from Ministry of while on the contrary, since 2014 onward the vacancy rate is
Manpower, the number of expatriates with a working permit expected to hit a double digits as we have witnessed in the first
during January-February 2016 was still 41% lower compared quarter of 2016.
to the same period in 2015 (8,980 people).
Amid the slowing global oil and gas business, other sectors
seem to bring exuberance to the expatriate housing market go-
Annual Number of Expatriates with Working Permit in ing forward. In line with the governments massive plan to pro-
Indonesia vide adequate energy supply, some major multinational compa-
Jan Feb nies have already started to play a part in this sector. Besides
2011 2012 2013 2014 2015
2016 power related industries, that are anticipated to become one of
#expatriates 77,307 72,427 68,957 68,762 69,025 5,339 the driving factors for residential needs, the infrastructure sec-
Source: Ministry of Manpower of the Republic of Indonesia tor seems to also become a trigger to create demand.
The second quarter of each year (April June) is typically the During the current sluggish market where the amount of hous-
peak season for obtaining new inquiries from expatriates who ing inquiries has noticeably diminished, landlords are generally
are assigned to work in Indonesia. During this period orienta- accommodative to the clients needs particularly amid the glut
tion activities intensify prior to their relocation process in order of residential supply. This situation has forced landlords to be
to understand and appraise the geographical situation while at more flexible in deciding the rental tariff, or alternatively have
the same time familiarizing them with the local culture. Dur- an empty cash-burning dwelling. During the first semester of
ing their familiarization trips, normally they will view houses or 2016 we have experienced discounts ranging between USD50
apartments, medical facilities, supermarkets, shopping malls, to to USD1,000/unit/month for standard expat housing compared
get an idea of where they might want to live in Jakarta. For ex- to the previous semester. Based on our experience, the biggest
patriates relocating with children, the proximity to the preferred discount was granted for relatively small stand alone houses
international school will typically take first priority in deciding with the size of 400 500 sq m which previously commanded
home location. Normally the relocation details need to be de- a USD5,000/unit/month price tag. This is unquestionably due
cided prior to the start of the school academic year in August to the number of vacant units of this type of housing currently
or September. available on the market. More luxurious homes are not as sub-
ject to this range of discount because of the reduced number of
units available.
Housing Rental Rates in Several Expatriate Areas

Offering Rental Rate per Unit
expatriate housing by area size (sq m) (usD/unit/month)
Minimum maximum
Menteng
4 - 5 Bedrooms House 500 - 1,200 4,000 12,000
Kuningan
4 - 5 Bedrooms House 500 - 900 4,000 8,000
Pondok Indah
4 - 5 Bedrooms House 450 - 1,000 3,500 10,000
continued

rental range (usD/unit/month)
expatriate housing by area size (sq m)
Minimum maximum
continuation
Kebayoran Baru
4 - 5 Bedrooms House 600 - 1,500 3,500 10,500
3 - 4 Bedrooms Townhouse/complex 250 - 700 3,000 4,000
Permata Hijau
4 - 5 Bedrooms House 400 - 1,500 4,050 10,800
3 - 4 Bedrooms Townhouse/complex 220 3,150
Kemang
4 Bedrooms Townhouse/complex 400 - 700 3,000 4,500
3 Bedrooms House 400 750 2,500 4,000
4 - 5 Bedrooms House 550 - 1,000 4,000 5,500
Cilandak
3 Bedrooms Apartment + Study 300 - 600 2,500 3,500
4 - 5 Bedrooms House 450 - 750 3,500 5,500
Cipete
3 Bedrooms House 300 - 500 2,500 3,000
4 - 5 Bedrooms House 400 - 800 3,000 4,500
Pejaten
4 Bedrooms House 500 - 900 3,500 5,500
Source: Colliers International Indonesia - Research and Residential Tenant Representation
Apartment for Expatriate A typical two-bedroom non-serviced apartment (including stra-

ta-title apartment which was rented to the expatriate) is offered
Despite not having as many units available, the management from a minimum of IDR18 million to a maximum of IDR56 mil-
of some selected expatriate apartment projects introduced an lion/unit per month, while a three-bedroom is offered ranging
increase in the rental rate by 5% over the reviewed period. The from IDR29 million to IDR78 million/unit per month. The most
apartment market which aims at shorter termed expat tenants expensive non-serviced apartment is located in Kebayoran Baru
benefits from the downsizing in the contract tenure from typi- area, e.g. Dharmawangsa, and is offered from IDR72 million to
cally two to three years employment contract to a shorter-term IDR130 million/unit per month for 4 to 5-bedroom apartments
of less than one year. Serviced apartment accommodation is (penthouse). A two-bedroom serviced apartment is offered
more flexible in the tenure terms compared to landed houses from a minimum IDR45.5 million to a maximum IDR67.5 mil-
and therefore is becoming increasingly popular among expatri- lion/unit per month, while the three-bedroom is offered ranging
ates. from IDR42 million to IDR94.5 million/unit per month. Further,
serviced apartment units of more than 3-bedroom are offered
ranging from IDR73.5 million to IDR176 million/unit per month.

Apartment Rental Rates in Several Expatriate Areas
rental rate (in usD/unit/month)
apartment by area size (sq m)
non-serviced apartment serviced apartment
Sudirman
2 Bedrooms Apartment 106 - 145 32 52 46 67
3 Bedrooms Apartment 158 - 320 45.5 - 78 68 94.5
Menteng
2 Bedrooms Apartment 90 - 142 35 51 54 56
3 Bedrooms Apartment 124 - 213 39 65 70
4 Bedrooms Apartment 319 176
Kuningan
2 Bedrooms Apartment 120 - 145 20 32.5 45.5 67.5
3 Bedrooms Apartment 157 - 166 32.5 39 49 52
4 Bedrooms Apartment 440 45.5
Pondok Indah
2 + 1 Bedrooms Apartment 117 - 190 42 48 45.5 - 55
3 Bedrooms Apartment 190 - 455 45.5 68 52 70
4 - 5 Bedrooms Apartment 285 - 455 66 71 73.5 83
Kebayoran Baru
2 Bedrooms Apartment 140 - 203 42 56
3 Bedrooms Apartment 243 - 302 58.5 78
4 - 5 Bedrooms Apartment 330 - 500 72 - 130
Permata Hijau, Simpruk

2 Bedrooms Apartment 105 - 115 40 41
3 - 4 Bedrooms Apartment 165 - 300 35 52 42 - 46
Kemang
3 Bedrooms Apartment 165 - 303 32.5 58.5
Cilandak
3 - 4 Bedrooms Apartment 164 29
3 Bedrooms Apartment + Study 300 58
Cipete
3 - 4 Bedrooms Apartment 220 - 295 52 78
Pejaten
2 - 3 Bedrooms Apartment 102 - 191 18 29
* exclude breakfast
Source: Colliers International Indonesia - Research and Residential Tenant Representation

Occupancy
In general, middle-upper to upper-class apartments experi-
enced a 3% drop in occupancy compared to the last semester
of 2015, hitting 79%. Though small, this decrease in occupancy
is inevitable, particularly due to the slowdown in the number of
expanding companies that generate demand for this segment.
The preferred areas remain the CBD (Rasuna Said, Satrio and
Sudirman) and South Jakarta, including Oakwood, The Ascott,
Golf Pondok Indah Residence and Shangri-La Residence.
Average Occupancy Rate of Selected Apartments

Preferred By Expatriates
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
A B C D E Average

Notes:
A: Dharmawangsa, The Capital Residence, SCBD Suites, Pakubuwono

Residence, Oakwood
B: The Residence at Ritz Carlton, Plaza Senayan, The Plaza Residence,
Airlangga Apartment, Senayan City
C: Setiabudi Residence, Golf Pondok Indah, Somerset Grand Citra, The
Ascott, Menteng Executive
D: Aston Rasuna, Somerset Berlian, Puri casablanca, Casablanca
E: Taman Rasuna, Palm Court, Puri Imperium

Retail Sector Supply
Jakarta
Cumulative Supply
Supply
The cumulative retail supply in Jakarta was recorded 5,000,000
at 4.47 million sq m while in the BoDeTaBek area,
4,500,000
the cumulative supply was 2.39 million sq m. Three
shopping centres totaling 78,000 sq m will be added 4,000,000
to the supply in Jakarta by the end of 2016. 3,500,000
3,000,000
Demand
2,500,000
Fashion and F&B retailers remained active in
searching for retail space. We anticipate big retailers 2,000,000
sq m
like department stores, supermarkets and cinemas 1,500,000

will continue to expand.
1,000,000
500,000
Occupancy
Occupancy in DKI Jakarta has been hovering for quite 0
sometime at around 86%. With a limited amount of
2011
2015
2013
2010
2017F
2012
2014
2019F
2018F
2016F
new supply, occupancy is expected to remain rela-
tively unchanged by the end of 2016.
Existing Supply Annual Supply Supply YTD Future Supply
Rent Source: Colliers International Indonesia - Research
The overall rental tariff is likely to increase next year
particularly because of continued demand for space
The beginning of Bassura City Malls operation during the quar-
in upper class malls.
ter marked it as the only new supply of shopping centre during
the first semester of 2016 in Jakarta. The mall is located within
a mixed-use development called Bassura City in East Jakarta.
By contributing circa 21,000 sq m of additional retail space,
the retail cumulative supply in Jakarta was recorded at 4.47
million sq m as of Q2 2016, showing a growth below 1% YoY.
The cumulative supply is expected to grow gradually in Jakarta.
Around 63% of the future supply in 20162019 are still in the
planning stage as of 2Q 2016. Thus far, retail moratorium in
certain commercial areas in Jakarta still exists but is likely sub-
ject to be ceased in line with the improvement in transportation
infrastructure. There might be some plans of new shopping
centre developments in the CBD area, but this has not yet been
officially announced in the market.
Fifteen shopping centres have gradually begun operations with- Distribution of Retail Spaces for Sale Based on
in the last five years in Jakarta. Nine of these shopping centres Area
are located in integrated residential developments (apartments)
to benefit from the local population. Lippo Mall Puri (opened in West CBD
2014), One Belpark Mall (2015) and Bassura City Mall (2016) Jakarta 1%
are the three latest operating shopping centres taking advantage 11%
of the surrounding massive residential developments. East
Jakarta
9%
Annual Retail Supply
250,000
Central
Jakarta
200,000 43%
150,000
North
Jakarta
28%
100,000
sq m
South Jakarta
8%
50,000
0
The supply growth of retail spaces for sale (strata-title) has
2011
2015
2013
2010
2017F
2012
2014
2019F
2018F
2016F
been relatively flat. Jakarta has seen no addition of retail spaces

for sale since 2012. Retail spaces for sale were recorded at 1.5
Annual Supply Supply YTD Under Construction In Planning million sq m, representing 32.2% of the total retail supply as of
Q2 2016. Going forward, New Harco Glodok seems to be the
Source: Colliers International Indonesia - Research only future supply of strata-title shopping centres in Jakarta.
The 60,000 sq m of retail space from this retail centre is pro-
Cumulative Supply Based on Marketing Scheme jected to add additional 4.2% strata-title supply by 2019.
4,000,000
Retail Supply Based on Area
3,500,000
West
3,000,000 Jakarta
2,500,000 East
Jakarta
2,000,000
North
1,500,000 Jakarta
sq m
South
1,000,000
Jakarta
500,000 Central
Jakarta
0
2010
2017F
2012
2014
2011
2015
2013
2019F
2018F
2016F
CBD
For Lease For Sale

0 200,000 400,000 600,000 800,000 1,000,000
sq m
Existing Supply in 2016YTD Future Supply in 2016F - 2019F

Previously, we recorded at least 11 existing trade centres having Annual Retail Supply
a net lettable area (NLA) of 50,000 sq m and more in Jakarta.
Most of these trade centres are located in Central and North 350,000
Jakarta, which have a long history as trading areas. Therefore,
these areas provide the largest strata-title retail space of around 300,000
70% of the total retail space for sale in Jakarta as of Q2 2016.

250,000
From the chart above, except for East Jakarta, the other re- 200,000
gions contributed more than 700,000 sq m of retail space as
of Q2 2016. Going forward, East Jakarta is expected to be- 150,000
come the most active region in contributing more retail space
sq m
in the future, together with West Jakarta. Thus far, based on 100,000
construction progress, only AEON Mall Jakarta Garden City is in
the construction stage. 50,000
0
Greater Jakarta
2011
2015
2013
2010
2017F
2012
2014
2019F
2018F
2016F
Cumulative Supply
Annual Supply Supply YTD Under Construction In Planning
3,500,000
3,000,000
2,500,000
Cumulative Supply Based on Marketing Scheme
2,000,000 2,500,000
1,500,000
2,000,000
sq m
1,000,000
1,500,000
500,000
0 1,000,000
sq m
2011
2015
2013
2010
2017F
2012
2014
2019F
2018F
2016F
500,000
Existing Supply Annual Supply Supply YTD Future Supply
Source: Colliers International Indonesia - Research 0

2010
2017F
2012
2014
2011
2015
2013
2019F
2018F
2016F
After developing Mal Metropolitan, Grand Metropolitan and Pla-

za Tambun (all of these are located in Bekasi), PT Metropolitan For Lease For Sale
Land, Tbk, the owner company, confirmed the beginning of the
operation of Metropolitan Mall Cileungsi. This became the ad-
ditional supply in BoDeTaBek (greater Jakarta) area. This shop-
ping centre, which is geographically located in Bogor Regency, Total retail space for sale was recorded at 763,228 sq m, rep-
contributed 26,500 sq m of new retail space and brought the resenting 32% of the total supply in BoDeTaBek area. This com-
cumulative supply to 2.39 million sq m as of Q2 2016. position is similar to that Jakarta. BoDeTaBek will still expect
two other future strata-title centres for sale up to 2019, namely,
BoDeTaBek will see more future supply than Jakarta. Sixteen Bekasi Trade Centre 2 (located in Bekasi) and Vivo Trade Mall
future shopping centres will contribute around 740,000 sq m (in Bogor).
from now up to 2019. Projected annual supply will be around
185,000 sq m in BoDeTaBek. Based on construction prog- In greater Jakarta area, Tangerang and Bekasi continue to pro-
ress, most of these future shopping centres are in the planning vide the most number of retail spaces compared to other re-
stage, particularly shopping centres scheduled for completion gions. The projected cumulative supply in each of these areas
in 20182019. will exceed one million sq m by 2019. Up to 10 of the 16 future
shopping centres in greater Jakarta will be located in Tangerang
and Bekasi.

Retail Supply Based on Area
Bekasi
Tangerang
Depok
Bogor
0 300,000 600,000 900,000 1,200,000

sq m
Existing Supply in 2016YTD Future Supply in 2016 - 2019F
New Supply Pipeline

nla
shopping centre developer location region development Status
(sq m)
jakarta
2016
Pantai Indah Kapuk Mall Agung Sedayu Pantai Indah North Jakarta 30,000 Under Construction
Kapuk
Shopping Mall @ Pancoran Agung Podomoro Pancoran South Jakarta 8,000 Under Construction
Neo SOHO Mall (Podomoro City) Agung Podomoro Slipi West Jakarta 40,000 Under Construction
2017
New Harco Plaza Agung Podomoro Glodok West Jakarta 60,000 Under Construction
2018
AEON Mall Garden City Aeon Cakung East Jakarta 71,000 Under Construction
Mall @ Green Pramuka City Duta Paramindo Sejahtera Pramuka North Jakarta 30,000 In Planning
Mal Puri Indah 2 Antilope Madju Puri Indah Puri Indah West Jakarta 50,000 In Planning
Shopping Mall at Podomoro Park Agung Podomoro Buaran East Jakarta 40,000 In Planning
2019
Holland Village Mall Lippo Karawaci Cempaka Putih Central Jakarta 40,000 In Planning
Mall at The City Center Greenwood Mas Mansyur CBD 65,000 In Planning
Grand Metro Cipulir Priamanaya Cipulir South Jakarta 30,000 In Planning
Pondok Indah Mall 3 Metropolitan Kentjana Pondok Indah South Jakarta 60,000 In Planning
continued

nla
shopping centre developer location region development Status
(sq m)
continuation
BoDeTaBek
2016
Bekasi Trade Center 2 Gapura Prima Bulak Kapal Bekasi 56,000 Under Construction
Q Big Sinarmas Land BSD City Tangerang 69,000 Under Construction
2017
Grand Dhika City Mall Adhi Persada Realty Bekasi City Bekasi 24,000 Under Construction
2018
Plaza Indonesia Jababeka Plaza Indonesia & Graha Buana Jababeka Bekasi 55,685 Under Construction
Cikarang
AEON Mall Deltamas Aeon Deltamas Bekasi 90,000 In Planning
AEON Mall Sentul Aeon Sentul Bogor 15,000 In planning
Living World Jababeka Kawan Lama Jababeka Bekasi 18,000 In Planning
Vivo Shopping Mall Megapolitan Cibinong Bogor 20,000 Under Construction
Vivo Trademall Megapolitan Cibinong Bogor 13,000 In Planning
2019
AEON Mall Bogor Aeon In Planning

Embarcadero Lippo Karawaci Bintaro Tangerang 30,000 In Planning
Hollywood Central Graha Buana Cikarang Cikarang Bekasi 25,000 In Planning
Kota Harapan Indah Hasana Damai Putera Medan Satria Bekasi 51,000 In planning
Lippo Grand Mall Lippo Karawaci Karawaci Tangerang 120,000 In Planning
Mall at Pesona Square Menara Depok Asri Juanda Depok 30,000 In Planning
Mall at Green Lake Cempaka Group Cimanggis Depok 20,000 In Planning
Occupancy
Jakarta
Global Retail Development Index 2016
Market Time National
2016 Market Size Country GDP per
Country Saturation Pressure GRDI Score Population Retail Sales
Rank (25%) Risk (25%) capita, PPP
(25%) (25%) ($ billion)
1 China 100.0 61.2 36.2 92.5 72.5 1,372 14,190 3,046
2 India 53.7 54.3 75.8 100.0 71.0 1,314 6,209 1,009
3 Malaysia 81.2 83.4 23.5 50.4 59.6 31 26,141 93
4 Kazakhstan 56.4 37.3 61.9 70.2 56.5 18 24,346 48

5 Indonesia 64.3 38.9 50.2 68.9 55.6 256 11,112 324
6 Turkey 85.9 46.4 31.9 53.1 54.3 78 20,277 241
7 United Arab Emirates 95.2 100.0 1.3 18.0 53.6 10 66,997 69
8 Saudi Arabia 91.2 64.9 21.3 31.5 52.2 32 53,565 109
9 Peru 47.3 52.8 50.4 57.2 51.9 31 12,077 70
10 Azerbaijan 33.9 30.8 80.9 59.3 51.2 10 18,512 17
Source: AT Kearney

Despite being recorded among the top five rankings in the Global
Retail Development Index (GRDI) report 2016, the retail market
Occupancy Outside the CBD Based on Area
in Jakarta has yet to show brisk performance. Occupancy has area Q2 2015 Q4 2016 Q2 2016
been hovering for quite some time and was recorded at 86% as South Jakarta* 91.10% 88.50% 88.60%
of Q2 2016. Two newly operating shopping centres with under- Central Jakarta* 73.10% 72.60% 72.60%
performing occupancy for the previous year also caused overall North Jakarta 84.50% 83.90% 84.90%
occupancy to slightly decrease YTD. Nonetheless, Indonesias
East Jakarta 87.40% 88.10% 82.20%
huge population is still appealing to foreign retailers, as reflected
West Jakarta 81.50% 81.10% 80.70%
in the burgeoning foreign retail investments in Indonesia, par-
ticularly in Jakarta. Dubai-based Lulu opened its first hyper- *excluding areas considered as the CBD
market in Cakung, East Jakarta. Meanwhile, Courts (Singapore),
Lotte (South Korea), Jysk (Denmark), Uniqlo (Japan), IKEA and
H&M (Sweden) have big plans to expand business in Indonesia, South and East Jakarta maintained the occupancy rates at 88%.
particularly in Jakarta. However, the overall occupancy rates in East Jakarta plunged
quite significantly to 82.2% following the beginning of Bas-
sura City Malls operation. Areas outside the CBD will see the
Occupancy Rates
completion of three future shopping centres in the remainder
100% of 2016. The start of the operation of the future Pantai Indah
90%
Kapuk Mall and Neo Soho Mall at Podomoro City in the first year
may impact the projected overall occupancy.
80%
70%
YoY Comparison: Number of Vacant Spaces Based
60%
on Area
50%
40% 120,000
30%
100,000
20%
10% 80,000
0%
2010
60,000
2012
2014
2011
2015
2013
2016YTD
sq m
40,000
CBD Outside the CBD Jakarta
Source: Colliers International Indonesia - Research 20,000
0
The CBD remains an attractive location for branded local and
foreign businesses for expansion. This has caused a wide gap CBD Central South North East West
Jakarta Jakarta Jakarta Jakarta Jakarta
in the occupancy rates of the CBD and areas outside the CBD
since 2014. Nevertheless, amid limited retail space in the CBD,
Q2 2015 Q2 2016
the occupancy only grew moderately during the first semester
of 2016 and was registered at 92%. Source: Colliers International Indonesia - Research
Meanwhile, average occupancy outside the CBD has been re-

corded at below 85% since 2014. After hovering at 84% for Occupancy Based on Mall Grade
the last two quarters, the average occupancy declined mildly Mall grade Q2 2015 Q4 2016 Q2 2016
to 83.8% as of Q2 2016. However, we still noted a number of Upper Class 91.6% 90.8% 90.9%
leasing activities at some shopping centres QoQ, particularly in
Middle Class 88.5% 86.3% 85.7%
North Jakarta, as can be seen in the following table.
Middle Lower Class 77.5% 77.7% 77.3%

Based on mall grade, the occupancy for upper-class shopping YoY Comparison: Number of Vacant Spaces Based
centres was recorded at 90.9% and has been relatively stable on Mall Grade
QoQ. In the middle lower class, occupancy slightly fluctuated
within the last year. At least four shopping centres of this class 180,000
(located in Slipi, Blok M, Koja and Cengkareng) hold a large va-
cant space, which brought the average occupancy to relatively 150,000
decline YoY. One of these four shopping centres is undergo-
ing renovation and upgrading of the tenancy mix. The QoQ oc- 120,000
cupancy rate at middle-class shopping centres was somewhat
corrected mainly because of the increasing vacant spaces at
90,000
several shopping centres located in Cilandak, Blok M, Rasuna
Said, Kelapa Gading and Mas Mansyur. More vacant spaces dur-
sq m
ing this period were contributed by newly operating shopping 60,000
centres in 20152016. Apart from that, some retailers are now
doing fit-outs for their stores, which are seemingly ready to be 30,000
occupied around the end of 2016.
0
Upper Classes Middle Classes Middle-Lower
Classes
Q2 2015 Q2 2016
New Tenants at Some Shopping Centres in Jakarta

Shopping Centre area new tenant
Mall Taman Anggrek West Jakarta WB Jewelry
Mall Puri Indah West Jakarta Celebrity Fitness
Central Park Mall West Jakarta Fossil, Tag Heuer, Sephora, Dharma Kitchen, POLO, Kitchen Art, Chung Gi Wa Korean BBQ, Puma, Planet
Sports, Jade Wong
Pluit Junction North Jakarta Hero Supermarket
Citywalk Sudirman Central Jakarta Takigawa, Shabu Tei, Gandy Steak
Committed Tenants at New and Future Shopping Centres in Jakarta

Shopping Centre area tenant name
Shopping Mall Pancoran South Jakarta Excelso, Nannys Pavilion, Starbucks, Coffee Bean, Baskin Robins, Chatime, Wendys, Solaria
Neo Soho Mall West Jakarta Central Dept Store, Kid Station, Electronic Solution, Pedro, The Body Shop, Clarks, Staccato, Polo Ralph
Lauren, Samsonite, Wrangler, Wood, Cotton On, Mango, Nine West, Charles & Keith, Armani Jeans, Furla,
Ta Wan, Pizza Hut, Pepper Lunch
Pantai Indah Kapuk Mall North Jakarta Uniqlo, The Food Hall, XXI, Ace Hardware, Golds Gym, Informa, H&M, Optik Melawai, Sports Station, Gior-
dano, Levis Store, Timberland, Pizza Hut, Starbucks, Excelso
Bassura City Mall East Jakarta XXI, Lion Superindo, Optik Melawai, Sports Station, The Body Shop, Starbucks, Imperial Kitchen

Greater Jakarta Occupancy Based on Area
Except for Bogor, other areas in greater Jakarta recorded area Q2 2015 Q4 2016 Q2 2016
relatively better occupancy rates albeit very moderately. Eight
Bogor 82.0% 82.0% 77.6%
shopping centres including Detos (Depok), Ekalokasari (Bogor),
Depok 85.6% 86.2% 86.9%
Summarecon Mall Bekasi, Grand Metropolitan (Bekasi), Grand
Galaxy (Bekasi), Bintaro Xchange, Cinere Bellevue and AEON Tangerang 78.3% 81.8% 82.0%
Mall reported that they have secured additional tenants occu- Bekasi 83.6% 85.7% 85.8%
pying above 1,000 sq m YoY. Nevertheless, overall occupancy Source: Colliers International Indonesia - Research
only slightly increased to 83.2% as of Q2 2016. In spite of the
fact that newly operating shopping centres have secured pre-
committed tenants, the physical occupancy is yet to be recorded YoY Comparison: Number of Vacant Spaces in
because the tenants are mainly in the preparation stage to open Several Regions
stores. BoDeTaBek area is anticipating a large new retail space 150,000
over the next four years. Given this, we expect an increase in
vacant space as the amount of supply will be larger than the
125,000
historical number of annual demand.
Occupancy Rate Based on Area 100,000
100%
75,000
90%
sq m
80% 50,000
70%
25,000
60%
50%
0
40%
Bogor Depok Tangerang Bekasi
30%
Q2 2015 Q2 2016
20%
10%
0% The limited number of vacant spaces in Jakarta, particularly in

2010 2011 2012 2013 2014 2015 2016YTD certain shopping destinations, has shifted the expansion target
of both local and foreign retailers in certain areas in BoDeTaBek.
Bogor Depok Tangerang Bekasi All Area
Demand for retail space from branded retailers is commonly
Source: Colliers International Indonesia - Research large and entail high-specification premises.
Committed Tenants at New and Future Shopping Centres in Greater Jakarta

Shopping Centre Name area new tenant
Metropolitan Mall Cileungsi Bogor Matahari Department Store, Gramedia, Cinema XXI, Superindo, Eat and Eat, Electronic City, JYSK
Vivo Lifestyle Bogor Centro, Fun World
Vivo Trade Mall Bogor Lotte Mart, CGV
Q Big Tangerang Mitra 10, Lulu Hypermarket, Informa, Ace Hardware, Toys Kingdom
Bekasi Trade Centre 2 Bekasi Hypermart

Rental Rates YoY: Average Asking Rents Outside the CBD Based
on Area
Jakarta IDR600,000
Average Asking Rents in Jakarta

IDR500,000
IDR900,000
IDR400,000
IDR750,000
IDR300,000
IDR600,000
IDR450,000 IDR200,000
IDR300,000 IDR100,000
IDR150,000 IDR0
Central South North East Jakarta West
IDR0 Jakarta Jakarta Jakarta Jakarta
2010
2012
2014
2011
2015
2013
2016YTD
Q2 2015 Q2 2016

CBD Outside CBD Jakarta
YoY: Asking Rents Based on Mall Grade
IDR900,000
Average asking rents for the whole area of Jakarta was re- IDR800,000
corded at IDR566,087/sq m/month as of Q2 2016. Around 20%
IDR700,000
of the total shopping centres contributed to the increase in the
average asking rent that grew 6% YoY. The most significant in- IDR600,000
crease occurred in North Jakarta, with at least seven shopping
IDR500,000
centres increasing the asking rents between IDR50,000 and
IDR200,000/sq m/month. In some cases, limited vacant space IDR400,000
pushed large well-known shopping centres to adjust the asking
IDR300,000
rent tariff, particularly for main areas like the ground floor. Such
adjustment has brought the average asking rent to climb sig- IDR200,000
nificantly by around 25% in North Jakarta. In East Jakarta, the IDR100,000
rental tariff adjustment was mainly due to the newly operating
shopping centre that changed the overall figure for the region. IDR0
Upper Classes Middle Classes Middle-Lower
As of Q2 2016, the average asking rent for retail occupation Classes
in the CBD was recorded at IDR855,965/sq m/month, while in
Q2 2015 Q2 2016
areas outside the CBD, it was IDR476,009/sq m/month.
Based on mall grade, middle- and middle to lower-class shop-
ping centres showed higher growth in rental rates than upper-
class shopping centres YoY. However, in terms of occupation
cost, the rate for most middle-class shopping centres is basi-
cally 45% less expensive than what is quoted by most upper-
class shopping centres. Currently, the range of the average
asking rents for upper-class shopping centres is recorded at
IDR550,000 to IDR1,200,000/sq m/month, while the middle
classes were recorded at IDR300,000 to IDR600,000/sq m/
month (middle) and IDR200,000 to IDR400,000/sq m/month
for middle lower.

Greater Jakarta The segmentation of shopping centres in BoDeTaBek is mainly
categorised as middle to middle lower class. As of Q2 2016,
Average Asking Rents in BoDeTaBek the asking rents were recorded in the range of IDR225,000 to
IDR450,000/sq m/month (middle class) and IDR200,000 to
IDR400,000
IDR360,000/sq m/month (lower class). Only a few shopping
IDR350,000 centres are segmented as middle to upper class, with rental
rates ranging from IDR300,000 to IDR550,000/sq m/month.
IDR300,000
IDR250,000
Service Charges
IDR200,000
IDR150,000
Jakarta
IDR100,000 Average Service Charges in Jakarta
IDR50,000 IDR180,000
IDR0
IDR150,000
2011
2015
2013
2016YTD
2010
2012
2014
IDR120,000
Bogor Depok Tangerang Bekasi Average IDR90,000

IDR60,000
Average Asking Asking Rents YoY IDR30,000
IDR400,000
IDR0
2011
2015
2013
2016YTD
IDR350,000
2010
2012
2014
IDR300,000
CBD Outside the CBD Jakarta

IDR250,000

IDR200,000
IDR150,000 Average Service Charges YoY Changes

IDR100,000 IDR140,000
IDR50,000 IDR120,000
IDR0 IDR100,000
Bogor Depok Tangerang Bekasi
IDR80,000
Q2 2015 Q2 2016
IDR60,000
IDR40,000
In the greater Jakarta area, average rental rates in Bekasi and
Bogor showed a relatively significant increase compared to IDR20,000
those of other regions. With the same reason, the main trigger
for the increase was the inclusion of newly operating shopping IDR0
centres with higher asking rent to the overall rental calculation. Central South North East Jakarta West
The asking rents increased 8.4% in Bogor YoY while in Bekasi, Jakarta Jakarta Jakarta Jakarta
the increase was 18.3% YoY. Overall, with other minor changes
Q4 2015 Q2 2016
experienced by the other regions, the average asking rent in
BoDeTaBek was recorded at IDR352,119/sq m/month as of Q2 Source: Colliers International Indonesia - Research
2016, growing 9.4%, YoY.

During Q2 2016, the average service charge in Jakarta moved Average Service Charges
upwards modestly by 4.5% QoQ to record IDR123,482/sq m/
month. At least 30 shopping centres made adjustments to this IDR 100,000
maintenance tariff by as much as 20% during the first semes-

ter. The CBD and South Jakarta, which are mostly populated IDR 80,000
by upper-class malls, recorded the highest increase in service
charges at IDR153,902 and IDR125,794/sq m/month, respec-
tively. However, the highest YTD growth in service charges was IDR 60,000
registered by North Jakarta, with at least seven shopping cen-
tres making adjustment for the tariff. IDR 40,000
The overall upper-class malls charged the operating cost to the

tenants at an average of IDR152,278/ sq m/month. This is an in- IDR 20,000
crease of 7% YTD, the highest growth compared to other lower-
class malls. Some shopping centres introduced 15.3% increase IDR 0
on the average in one years time.
2011
2015
2013
2016YTD
2010
2012
2014
YTD: Service Charge based on Mall Grade
IDR160,000 Bogor Depok Tangerang Bekasi Average

IDR140,000
IDR120,000 YoY: Service Charge based on Area

IDR100,000 IDR100,000
IDR80,000
IDR80,000
IDR60,000
IDR40,000 IDR60,000
IDR20,000
IDR40,000
IDR0
Upper Middle Middle-Lower
IDR20,000
Q4 2015 Q2 2016

IDR0
Greater Jakarta Bogor Depok Tangerang Bekasi
Only six shopping centres made adjustments in the average ser- Q4 2015 Q2 2016
vice charge, with moderate increase of 3.3% YTD to IDR88,158/
sq m/month as of Q2 2016. We recorded about three shop- Source: Colliers International Indonesia - Research
ping centres in Depok making adjustments in the service charge

tariff, thus bringing the highest increase (compared to other
regions) of 9.7%. Moreover, one of these malls introduced an
almost double tariff since the mall began operations in 2014.

Industrial Estate Industrial Land Supply
In the midst of sluggish industrial land sales, the commitment
Sector to deliver ready-to-build land still prevails, highlighted by con-

tinuing construction activity. Many landlords still believe in the
long-term investment climate; however they tend to flow with
the current market trends and remain quite cautious during this
slowdown period.
Forecast at a glance As discussed in earlier reports, Karawang will potentially be-
come the area with the most land for expansion. The biggest
Supply land expansion will come from a consortium of companies,
In Karawang the Gajah Tunggal Group and Agung Trans Hexa Karawang (THK). The consortium members in-
Podomoro Group have already launched their indus- clude group of companies such as Gajah Tunggal, Salim, Artha
trial estates. They are members of a consortium of Graha, Agung Podomoro, etc. Currently, the total area of THKs
industrial developers referred to as Trans Hexa Kar- land is roughly 2,300 hectares. THKs location can be accessed
awang who share a common road. by exiting the Jakarta-Cikampek toll road at KM 46, followed by
Karawang Barat Toll Gate 2. The main road, with a 45-metre
ROW (Right of Way), connects several industrial estates in the
Demand
area. Thus far, Gajah Tunggal has developed an industrial estate
This quarter, the total sales of industrial land in the
called GT Techpark @ Karawang. We have not seen any other
greater Jakarta area added to 29.03 hectares. Total
companies within the consortium start construction, mainly
sales in H1 2016 only represented 13.9% of the total
because they are still waiting for a market response. Unlike
of last years transaction of 347.51 hectares. We an-
the typical buyers of other property sectors, industrial tenants
ticipate a higher sale volume in H2 2016 particularly
generally prefer ready-to-use land plots instead of buying pa-
coming from the logistics sector.
per, even when it is backed up by big property developers. In
fact, on the demand side, there is strong indication that estab-
Price lished companies would prefer take an established industrial
The price of industrial land will likely remain un- estate, rather than pioneering a new, undeveloped estate. The
changed by the end of 2016. proper sales strategy to cope with such a situation is to offer
an anchor buyer with serious intentions and a strong brand in
the market. This means transactions only occur for substantial
amounts of land covering more than 30 hectares. If a smaller
buyer approaches, the landlord will only deliver ready-to-build
land within the next two years.
We have also heard of a plan regarding a sizeable land acquisi-

tion for expansion in Karawang. Considering the limited amount
of land they currently hold, the expansion plan seems to be
feasible given the need to increase production capacity from
the internal tenants. Nevertheless, the downturn in the land
absorption rate over the last couple of years has forced land-
lords to consider taking an enormous amount of land.
Land availability remains a classic issue for the Bekasi region.

Two industrial estates revealed potential enquiries for land, but
in a substantial amount which they cannot fulfill because of
land availability. Meanwhile, one industrial estate in this region
foresees this as an opportunity, as they still have abundant land
stock to be developed. GIIC is now accelerating the prepara-
tion of a 450-hectare expansion in stages in anticipation of This quarter, Bekasi Fajar (BFIE) stood at a record high in terms
large-scale land enquiries. Meanwhile, BFIE has set plans for a of sales volume. Albeit moderate in number, i.e. 11.5 hectares,
50-hectare expansion, and even now there is only limited land this represents the most sales made by BFIE in the last six
available for sale. consecutive quarters. The sales made by BFIE also underline
the fact that the logistics sector has bolstered its position as the
Bogor is the only region with minimal expansion capacity, and most active type of industry in securing industrial land. Com-
thus far the number of enquiries is small, and they rarely occur. posed of several transactions, the sales by BFIE are all from
KIEC, in Serang, continues to take part in the acquisition of sev- logistics-related companies, including warehouses. Amidst
eral small lots as part of their big plan to develop 100 hectares weakening automotive sales volumes over the last couple of
for future supply. Their target is to comprehensively develop the years, the need to store related material has escalated, trigger-
area by 2017. ing growth in the logistics sector. Furthermore, requirements
for logistics facilities have mounted in volume following the
Industrial Land Stock Status in Some Active and brisk prospects of on-line retail.
Future Industrial Estates
One prominent industrial estate in Bekasi has again reported
4,000 no sales for this quarter. The major issue was not sluggish de-
mand, but limited capacity to entertain sizeable land enquiries.
3,500
This has been a dilemma amidst the slowing market, but at the
3,000 same time it cannot execute transactions because of a lack of
supply. For some tenants or industrial investors, proximity to
2,500 the capital city and well-built infrastructure will always be the
main reasons for choosing an industrial location.
2,000
Hectares
1,500 Delta Silicon also felt that the recent market conditions have
been very slow. This quarter they only performed a land trans-
1,000 action for roughly one hectare with a Taiwanese packaging com-
pany and a local auto parts company. Nevertheless, they expect
500
a brisker outlook next quarter, with several transactions in the
0 pipeline. Such conditions were also experienced by Greenland
Bogor Tangerang Karawang Bekasi Serang
International Industrial Centre (GIIC), where they expect to see
market improvement in the third quarter, with several sizeable
Existing Stock Remaining Unsold Land transactions on the horizon. In total, Bekasi registered a total
Potential Land To Be Developed of 17.5 hectares in transactions, the most compared to other
regions and a 50% increase QoQ.
Other relatively sizeable transactions during the quarter came

Industrial Land Sales from Jababeka Industrial Estate, which sold a total of 5 hectares
of land, mainly to logistics companies and smaller companies
Land Absorption in Q2 2016 from the electronics and consumer sectors.
Bekasi Fajar
In Karawang, two industrial estates reported sales which ac-
counted for a total of 4.1 hectares. Though small, this figure
Modern Cikande is higher than last quarters 3.5 hectares. After registering 2
hectares in land sales last quarter, KIIC reported around 3 hect-
Jababeka ares worth of sales from the expansion of a Japanese auto
parts company. Meanwhile, a steel company based in Korea also
KIIC expanded at Suryacipta, taking up 1.1 hectares. Two other indus-
trial estates in Kota Bukit Indah did not record any transactions
Millennium of industrial land for sale or lease. Since the beginning of 2014,
Karawang has registered a total transaction volume of under 10
Suryacipta
hectares every quarter.
Delta Silicon
Millennium sold roughly the same amount of land QoQ, totalling
Krakatau Industrial Estate Cilegon
1.9 hectares, made up of a 1.4-hectare land plot sale to the plas-
tics industry and various standard warehouse buildings ranging
from 600 sq m to 1,000 sq m, totalling about 5,000 sq m of
0 2 4 6 8 10 12
land. There are several other industrial estates in Tangerang,
hectares

but most are not actively selling. The latest one is Griya Idola In- Types of Activities Industries During Q2 2016
dustrial Park, an industrial park selling industrial lots and build-
ings with a total area of 80 hectares. More than 70% of the total
sellable land in the first stage (20 hectares) has been absorbed. Logistics/
Packaging
Warehousing
1% Molding
48%
Though relatively small, Modern Cikande has consistently regis- 4%
tered land sales totalling around 5 hectares through two trans- Developer
actions. Thus far, these sales make up the second-largest area, 2%
after those at BFIE. Two local companies in the pharmaceutical Others
7%
and chemical industries are new to this estate. Modern Cikande
has recorded remarkable sales volume for the last two years,
and although 2016 has seen this volume fall quite a bit, the sales
performance of this estate has been above the market average.
Meanwhile, KIEC only recorded sales from the expansion of a
French company in the industrial gas sector. Thus far this is the Manufacturing Automotive
only transaction it has registered this year. Going forward, KIEC 1% 19%
Oil & Gas
is confident in the market situation and is anticipating sizeable
Related Chemicals
transactions in July or August. 1% 4%
Steel- Pharma- Plastics
related ceutical 4%
Annual Industrial Land Absorption 2% 6%
1,400 Source: Colliers International Indonesia - Research
1,200
1,000
Land Price
Greater Jakarta Industrial Land Prices
800
USD250.00
600
USD225.00
Hectares
400 USD200.00
USD175.00
200
USD/sq m
USD150.00
0 USD125.00
2006
2008
2009
2007
2010
2012
2014
2011
2015
2013
2016YTD
USD100.00
USD75.00
Jakarta Bogor Tangerang Karawang Bekasi Serang USD50.00

USD25.00
USD0.00
2011
2015
2013
2006
2008
2009
2016YTD
2007
2010
2012
2014
Total sales of industrial land in several regions in the great-

er Jakarta area accounted for 29.03 hectares, slightly higher
than last quarters 19.39 hectares. Last years total transactions Bogor Bekasi Tangerang Karawang Serang
reached 347.51 hectares, which means that total sales during Source: Colliers International Indonesia - Research
the first semester of this year were only 13.9% of last year. It
will be very difficult to reach last years transaction total in the
remaining six months of this year.
Throughout the first half of the year, the logistics sector be-
came the most active sector, similar to the trends of the last
two years.

The current general sales performance has lead to further Maintenance costs remained flat during the quarter. None of
downward pressure on prices. Two industrial estates reported the operating industrial estates changed their costs, as neces-
the introduction of new lower prices, at an average of 8%, this sary adjustments were made beforehand. Besides, during hard
quarter, in light of increasingly tough sales. Other industrial times, landlords tend to create a conducive atmosphere by not
estates with mediocre sales may maintain the current asking introducing new tariffs. The maintenance tariffs in industrial es-
prices, but would probably be willing to negotiate. tates are generally maintained for a longer period. Unlike land
prices, maintenance costs in all industrial estates in Bekasi are
Buyers with a sizeable purchasing plan may be in a better posi- charged in US dollars. In Karawang, a few estates are already
tion to negotiate. This has been the case when potential buyers offering rupiah tariffs, while all of the industrial estates in Se-
come with a requirement of more than 10 hectares; moreover, rang have applied the rupiah tariff for several years.
if the potential buyers are from an anchor industry, this may
entice other supporting industries to buy as well.
Industrial Land Prices and Maintenance Costs
Bekasi, the home of many established industrial estates, main- (in USD equivalent)
tains the highest prices in comparison to other regions. Asking Land price (in USD/sq m)
maintenance costs
prices are already set in rupiah and range from IDR2.4 million region (in usd/sq m/month)
to IDR3.5 million, depending on the estate specifications (qual- lowest highest average lowest highest average
ity, facility, etc.) and the tenants. In Karawang, prices are mainly Bogor 120.00 210.21 165.11 0.06 0.06 0.06
offered in US dollar, starting from USD170 to USD200. As of Q2 Bekasi 180.18 240.24 218.17 0.06 0.08 0.07
2016, land prices across greater Jakarta are primarily quoted Tangerang 142.64 150.15 146.40 0.03 0.08 0.06
in ID rupiah, and thus far prices in US dollar are only found in Karawang 170.00 200.00 185.00 0.05 0.10 0.06
Karawang. Serang 150.15 165.17 157.66 0.03 0.05 0.04
*1USD = Rp 13,320
Currently, a 10% discount on the asking price is quite common, Source: Colliers International Indonesia - Research
and still within the target of the transacted price. Larger dis-
counts may occur for large-scale land transactions.
Maintenance Cost Concluding Thought

Greater Jakarta Industrial Maintenance Costs Some industrial estates felt that they did not see signs of mar-
ket recovery during this review period, and they do not expect
USD0.10
a miracle to boost sales performance. On the other hand, we
USD0.09 also saw a contradictory situation, whereby industrial estate
USD0.08 landlords started to feel that the market is likely to bounce back
USD0.07 in the near-term. All in all, without any good expectations of the
market over the next semester, we believe that the market will
USD0.06
need to breathe heavily to catch up to last years sales perfor-
USD0.05 mance, since the total transactions from last year mainly con-
USD/sq m/month
USD0.04 sisted of a single enormous transaction which lifted the overall

USD0.03 performance. This year will definitely need such a transac-
tion to keep up with last years performance. That would be a
USD0.02
miracle.
USD0.01
USD0.00
2006
2008
2009
2007
2010
2012
2014
2011
2015
2013
2016YTD
Bogor Bekasi Tangerang Karawang Serang

Hotel Sector Hotel Supply
Starred Hotel
Forecast at a glance In Q2 2016, there were three new hotel projects that began
operation in Jakarta. In the 3-star hotel category, Archipelago
International added 131 rooms under Harper brand, located in
Supply Jalan MT Haryono, East Jakarta. Harper MT Haryono is the
By end of 2016, Jakarta will see an additional 4,756 first Harper hotel in Jakarta. Additionally, another new 3-star
rooms comprising 1,302 rooms in 3-star hotels; category was from the operation of Liberty hotel, which is lo-
2,796 rooms in 4-star hotels; and 658 rooms in cated in the CBD. This hotel provides 60 rooms for the public.
5-star hotels. As of Q2 2016, there were a total of 10,683 3-star hotel rooms
in Jakarta.
Demand
The number of foreign visitors coming to Indonesia In the 4-star hotel category, Accor expanded using the Mercure
through Soekarno Hatta airport will have inflated brand in Jakarta. This recently opened hotel is located in Cikini,
from 2.4 million in 2015 to 2.7 million in 2016. Central Jakarta. Mercure Cikini provides 207 rooms, leading
the total hotel rooms in the 4-star category to reach 14,921.
Performance
With a substantial amount of additional rooms by None of the under-construction 5-star hotels is ready for op-
the end of 2016, we predict AOR may drop and thus eration during the reviewed quarter. Thus, the total number of
hoteliers will be pushed to adjust room tariffs down- 5-star hotel rooms in Jakarta remains at 12,193.
ward.
By the end of 2016, Jakarta expects to see a total of 11,835
3-star hotel rooms, 17,867 4-star hotel rooms and 12,851 5-star
hotel rooms, respectively.
Top 5 Most Active Hotel Chain Operators in Jakarta

(including Budget Hotel), 2015 - Present
InterContinental Santika Hotel &

Hotel Group Resorts
13% 13%
Swiss-belhotel
International MaxOne
19% 19%
Archipelago
International Accor
13% 25%

Cumulative Supply of Starred Hotel Projects in Cumulative Supply of Starred Hotel Rooms in
Jakarta Jakarta
100 21,000
90 18,900
80 16,800
70 14,700
60 12,600
50 10,500
8,400
40
6,300
30
4,200
20
2,100
10
0
0
2011
2015
2013
Q1 2016
2010
Q2 2016
2017F
2012
2014
2019F
2018F
2016F
2011
2015
2013
Q1 2016
2010
Q2 2016
2017F
2012
2014
2019F
2018F
2016F
3-star 4-star 5-star 3-star 4-star 5-star
Source: Colliers International Indonesia - Research Source: Colliers International Indonesia - Research
New Pipeline
projected
STARRED STR CHAIN
HOTEL NAME LOCATION REGION ROOMS project status completion
RATING SCALE RATE
TIME
Yello Hotel Hayam Wuruk 3-star Not define yet Hayam Wuruk Central Jakarta 372 Under construction Q3 2016
Harper TB Simatupang 3-star Not define yet TB Simatupang South Jakarta 180 Opening Q3 2016
preparation
Whiz Prime Hayam Wuruk 3-star Not define yet Hayam Wuruk Central Jakarta 100 Under construction 2016
Ibis Styles Jakarta PIK 3-star Midscale Class Pantai Indah Kapuk North Jakarta 200 Under construction 2016
Ibis Styles Kemang 3-star Midscale Class Kemang South Jakarta 200 Deferred 2016
Ibis Styles Tanah Abang 3-star Midscale Class Tanah Abang Central Jakarta 225 Post Tender 2017
Grand Zuri Mangga Dua 3-star Not define yet Mangga Dua Central Jakarta 130 Design Stage 2017
Hotel Pasar Senen 3-star Not define yet Pasar Senen Central Jakarta 200 Under construction 2017
Santika TB Simatupang 3-star Upper Upscale TB Simatupang South Jakarta 160 Permit Process Q1 2018
Class
Total 3-star hotel rooms 1,767
Swiss-Belhotel - Kelapa Gading 4-star Upscale Class Kelapa Gading North Jakarta 316 Under construction Q3 2016
Swiss-Belhotel Rasuna 4-star Upscale Class Rasuna Epicentrum South Jakarta 323 Under construction Q3 2016
Epicentrum
Harris Hayam Wuruk 4-star Upscale Class Hayam Wuruk Central Jakarta 238 Under construction Q3 2016
Four Points by Sheraton Jakarta 4-star Upscale Class Thamrin CBD 162 Opening Q3 2016
preparation
Holiday Inn Hotel & Resorts 4-star Upper Gajah Mada Central Jakarta 420 Opening Q4 2016
Jakarta Gajah Mada Midscale Class preparation
Prima Hotel 4-star Not define yet KH Wahid Hasyim Central Jakarta 150 Under construction 2016
Aston Titanium Cijantung 4-star Upscale Class Cijantung East Jakarta 225 Opening 2016
preparation
Suite Novotel Jakarta PIK 4-star Upscale Class Pantai Indah Kapuk North Jakarta 220 Opening 2016
preparation
Grand Whiz Poin Square 4-star Not define yet Lebak Bulus South Jakarta 132 Opening 2016
preparation
continued

projected
STARRED STR CHAIN
HOTEL NAME LOCATION REGION ROOMS project status completion
RATING SCALE RATE
TIME
continuation
Aston Sunter Hotel 4-star Upscale Class Sunter North Jakarta 150 Under construction 2016
Ancol Courtyard Marriott Hotel 4-star Upscale Class Ancol North Jakarta 310 Opening 2016
preparation
aloft Kebon Jeruk 4-star Upscale Class Kebon Jeruk West Jakarta 140 Under construction Q3 2017
Novotel Cikini 4-star Upscale Class Cikini Central Jakarta 286 Under construction Q2 2017
aloft Wahid Hasyim 4-star Upscale Class Wahid Hasyim Central Jakarta 170 Under construction Q4 2017
Prama Gatot Soebroto - Kemang 4-star Not define yet Kemang Raya South Jakarta 200 Concept Stage 2017
Morrissey Hotel 4-star Not define yet Wahid Hasyim Central Jakarta 343 Under construction 2017
Grand Clarion Jakarta 4-star Not define yet Otto Iskandar Dinata East Jakarta 272 Under construction 2017
Mercure Hotel Matraman 4-star Upscale Class Matraman Raya South Jakarta 150 Deferred 2017
Hotel Santika Premier Yos 4-star Upper Upscale Yos Sudarso South Jakarta 150 Deferred 2017
Sudarso Class
Mercure Kemang 4-star Upscale Class Kemang South Jakarta 80 Permit Process Q1 2018
Oyama Centre 4-star Not define yet Yos Sudarso North Jakarta 160 Under construction 2018
aloft Jakarta Simatupang 4-star Upscale Class TB Simatupang South Jakarta 180 Permit Process 2019
Radisson RED Jakarta 4-star Upscale Class Satrio CBD 36 Planning stage 2019
Four Seasons 5-star Luxury Class Gatot Subroto CBD 125 Opening Q3 2016
preparation
The Westin Jakarta@Gama 5-star Luxury Class Rasuna Said CBD 283 Opening Q3 2016
Tower preparation
Alila - SCBD lot 11 5-star Luxury Class SCBD CBD 250 Under construction 2016
InterContinental Jakarta Pondok 5-star Luxury Class Pondok Indah South Jakarta 470 Under construction 2017
Indah Hotel & Residences
The Langham District 8@Lot 28 5-star Luxury Class SCBD CBD 200 Under construction 2017
SCBD
JW Marriott @St Moritz 5-star Luxury Class Puri Indah West Jakarta 208 Under construction 2017
JW Marriott @Kemang Village 5-star Luxury Class Kemang South Jakarta 275 Deferred 2017
Park Hyatt Hotel 5-star Luxury Class Kebon Sirih Central Jakarta 150 Under construction 2017
W Hotel @Ciputra World Jakarta 5-star Luxury Class Mega Kuningan CBD 126 Deferred 2018
2
Aryaduta - Holland Village 5-star Upscale Class Cempaka Putih Central Jakarta 180 Under construction 2018
Sofitel 5-star Luxury Class Mega Kuningan CBD 212 Under construction 2018
Regent 5-star Luxury Class Gatot Subroto CBD 127 Under construction 2018
Rosewood Jakarta 5-star Luxury Class Satrio CBD 200 Design Stage 2018
St Regis 5-star Luxury Class Gatot Subroto CBD 280 Design Stage Q1 2019
Waldorf Astoria 5-star Luxury Class Thamrin CBD 181 Abandoned 2019
Total star hotel rooms 9,847
Source: Colliers International Indonesia - Research, STR Global

Budget Hotel Cumulative Supply of Budget Hotel (Economy
Class) in Jakarta
In Q2 2016, there was one new budget hotel called MaxOne lo-
60
cated in Kramat, Central Jakarta. This hotel provides 120 rooms.
The room contribution from this hotel brought the overall supply
of budget hotels to 5,087 rooms in Jakarta. 50
40
30
20
10
2010
Q2 2016
2017F
2012
2014
2011
2015
2013
2019F
2018F
2016F
Q1 2016
Future Budget Hotel Development in Pipeline

PROJECTED
STR CHAIN NO. OF
HOTEL NAME LOCATION REGION PROJECT STATUS COMPLETION
SCALE RATE ROOMS
TIME
Fame Hotel Not define yet Grand Cakung Mall East Jakarta 97 Deferred Q3 2016
Cordela Hotel Not define yet Kramat Raya Central Jakarta 70 Under construction Q3 2016
Amaris Tanah Abang Economy Jl Fachrudin Central Jakarta 79 Deferred Q3 2016
Oak Tree Not define yet Wahid Hasyim Central Jakarta 120 Under construction 2016
Amaris Pluit Economy Pluit Raya North Jakarta 112 Under construction 2016
Whiz - Cipete Not define yet Cipete South Jakarta 180 Under construction 2016
NEO Kebayoran Midscale Class Kebayoran Lama South Jakarta 102 Under construction 2016
POP! Hotel Pasar Baru Economy Class Pasar Baru Central Jakarta 112 Under construction 2016
Luminor Not define yet Pecenongan Central Jakarta 199 Under construction 2016
Amaris Slipi Economy Letjen S Parman West Jakarta 146 Under construction Q2 2017
MaxOne Hayam Wuruk Not define yet Hayam Wuruk Central Jakarta 120 Under construction 2017
Whiz Hayam Wuruk Not define yet Hayam Wuruk Central Jakarta 200 Deferred Q1 2018
Ibis Budget Jaksa Economy Jl Jaksa Central Jakarta 99 Permit Process 2018
POP! Hotel Wahid Hasyim Economy Wahid Hasyim Central Jakarta 150 Design Stage Q1 2019
Total budget hotel rooms 1,786
Source: Colliers International Indonesia - Research, STR Global

Hotel Demand Average Occupancy Rate (AOR)
Based on the Statistics Bureau Indonesia data, by the end of During Q2 2016, hotel performance in Jakarta started to pick
April 2016, there were a total of 664,892 foreign visitors who up. Business is running as usual. The end of Q2 2016 is festive
landed in Soekarno-Hatta International Airport, a 4.9% drop season. A lesser number of people will go on business trips, so
compared to last year. many people will fast forward their schedules. This causes an
increase in MICE performance in the hotel sector. The corporate
The month of Ramadhan has also benefited the hotel business, and government market pushed most of its meeting activities
not from room income but from meeting room and food reve- before the festival, so the occupancy in Q2 2016 increased.
nue. During the season, there is an increase in gathering activi-
ties particularly from corporations holding break fasting gather- In Jakarta, the AOR increased quite significantly by 4.9% to
ings or buka puasa bersama either internally or for clients. 56.7% QoQ. In the CBD area, the AOR increased by 4.2% to
In general, hotels intensively promote special packages, taking 55.3% QoQ. Meanwhile, for hotels outside the CBD area, the
advantage of the season of Ramadhan. AOR increased by 5.4% to 57.6% QoQ.
Number of Passengers Through Soekarno Hatta, In the CBD area, the highest increase in occupancy happened
Ngurah Rai and Juanda Airports in luxury-class hotels. With good market conditions, the AOR
for luxury hotels increased by 4.78% in Q2 2016, bringing the
4,000,000 AOR to 53.17%. The second biggest increase in the CBD area
was experienced by upscale-class hotels with 4.36% increase,
3,500,000
bringing the AOR to 55.26%. Upper upscale-class hotels ex-
3,000,000 perienced 4.04% increase, bringing the AOR to 60.01% in Q2
2016. Upper midscale- and midscale-class+ hotels experienced
2,500,000 3.45% increase, bringing the AOR to 56.83%.
2,000,000
The good occupancy rating by hotels in the CBD area was fol-
1,500,000 lowed by hotels outside CBD. In upper upscale-class hotels, the
AOR increased significantly by 5.73% QoQ, bringing the AOR to
1,000,000 54.59%. Meanwhile, in upscale-class hotels, the AOR increased
by 3.95% to 60.34%.
500,000
0 Monthly Average Occupancy Rate (AOR)

2008
2009
2010
2012
2014
2011
2015
2013
2016YTD
100%
90%
Soekarno - Hatta Ngurah Rai Juanda
80%
Source: Statistics Bureau Indonesia
70%
60%
Performance 50%
The tight competition has exerted a big impact on the hotel sec- 40%
tor. To achieve the revenue target, they pushed to optimise ev-
30%
ery sector in the hotel.
20%
10%
0%
Jan Feb Mar Apr May
Jakarta CBD Outside CBD
Source: STR Global

Average Occupancy Rate (AOR) in Jakarta Average Occupancy Rate (AOR) in Outside the CBD
100% 100%
90% 90%
80% 80%
70% 70%
60% 60%
50% 50%
40% 40%
30% 30%
20% 20%
10% 10%
0% 0%
2013 2014 2015 Q1 2016 Q2 2016 2013 2014 2015 Q1 2016 Q2 2016
Jakarta CBD Outside CBD Upper Upscale Class Upscale Class
Source: STR Global Source: STR Global
Average Occupancy Rate (AOR) in CBD Average Daily Rate (ADR)

100%
Jakartas ADR slightly increased by 0.15% to USD82.65 in Q2
90% 2016. There was a 0.71% increase of ADR for hotels in Jakarta
80%
CBD to USD122.25. Meanwhile, areas outside the CBD experi-
enced 0.35% increase.
70%
60% In the CBD area, the ADR for all classes generally slightly in-
50%
creased. The highest increase happened in luxury-class hotels,
exhibiting 0.87% increase. It brought the ADR to USD178.73.
40% Upper midscale- and midscale-class+ experienced 0.85% in-
30% crease to USD60.87. Upscale-class hotels also experienced a
20%
spike. The AOR increased by 0.59% to USD76.58. In upper up-
scale-class hotels, the increase was only 0.24% to USD120.11.
10%
0% For areas outside the CBD, the ADR were varied. In upper up-
2013 2014 2015 Q1 2016 Q2 2016 scale class, there was a 0.70% increase, which brought the ADR
to USD87.68. Meanwhile, for the upscale class outside the CBD,
Luxury Class Upper Upscale Class
there was a 0.48% decrease, bringing the ADR to USD63.05.
Upscale Class Upper Midscale & Midscale Classes+
Source: STR Global The increase in ADR of Jakarta hotels in Q2 2016 was affected
by the numerous MICE activities held before the festival. Al-
though the increase was not significant, it signalled that the per-
formance of Jakarta hotels is getting better.

Monthly Average Daily Rate (ADR) Average Daily Rate (ADR) in CBD
USD150.00 USD200.00
USD120.00 USD160.00
USD120.00
USD90.00
USD80.00
USD60.00
USD40.00
USD30.00
USD0.00
USD0.00 2013 2014 2015 Q1 2016 Q2 2016
Jan Feb Mar Apr May
Luxury Class Upper Upscale Class
Jakarta CBD Outside CBD Upscale Class Upper Midscale & Midscale Classes+
Average Daily Rate (ADR) in Jakarta Average Daily Rate (ADR) in Outside the CBD
USD150.00 USD90.00
USD75.00
USD120.00
USD60.00
USD90.00
USD45.00
USD60.00
USD30.00
USD30.00
USD15.00
USD0.00 USD0.00
2013 2014 2015 Q1 2016 Q2 2016 2013 2014 2015 Q1 2016 Q2 2016
Jakarta CBD Outside CBD Upper Upscale Class Upscale Class

Although the performance of Jakarta hotels is getting better,
competition in the hotel sector in Jakarta is getting tighter.
Based on Colliers database, Jakarta is expected to have addi-
tional 4,756 new rooms by the end of 2016. It consists of 1,302
3-star hotel rooms, 2,796 4-star hotel rooms and 658 5-star
hotel rooms.
Hoteliers are challenged to be able to maintain the AOR and

ADR of their hotels, but looking at the current conditions, hote-
liers are faced with two options. The first is to maintain the AOR
but lose their ADR or maintain their ARR but lose the AOR. In
several areas, hoteliers may maintain both AOR and ADR with
positive trend. This could happen because the supply grows
in line with the demand. Thus, when there is new supply, the
changes in AOR and ADR are not very significant because the
market does exist. The problem happens when supply exceeds
demand. The market will be divided, which will cause the AOR
or ADR or both to drop.
Unfortunately, this recently happened in Jakarta. Most hoteliers

were urged to maintain either their AOR or ARR. The condition
worsened because of the loss of some corporate markets.
Other than that, the government announced that there will be

an amendment for the Government Expenditure budget due to
changes in some indicators. One is the operational expenditure,
which includes business trips and meeting packages. This con-
dition will impact the hotel sector, especially the MICE sector
and those related to the government market.
The same situation happened in the end of 2014 when the gov-
ernment issued a regulation to ban government meetings in ho-
tels. It brought down hotel performance significantly and the
government market was lost. Hoteliers should prepare for the
worst situation if the government amends the budget.
For more information: Contributors:

Ferry Salanto Eko Arfianto Nurul Soraya
Senior Asociate Director | Research Manager | Research Senior Research Executive | Research
+62 21 3043 6888
Hern Rizal Gobi
ferry.salanto@colliers.com
Assistant Manager | Research
Copyright 2016 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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Jakarta Property Market Report

2 Quarterly Report | Q2 2016 | Jakarta | Colliers International

Office Spaces Offered For Lease

finance-related companies remain active in search- 2,000,000

Rent Eleven office buildings are expected to be completed, providing

19%. However, given a huge projected supply in 2017 2018,

On the back of a buoyant, long-term growth projection of In- 2,500,000

donesias economy, some developers (international and local)

Source: Colliers International Indonesia - Research

4 Quarterly Report | Q2 2016 | Jakarta | Colliers International

Source: Colliers International Indonesia - Research 500,000

We expect to see additional 381,059 sq m of office spaces out-

Meanwhile, some developers have a different perspective and

5 Quarterly Report | Q2 2016 | Jakarta | Colliers International

Annual Supply Additional Supply YTD

Annual Supply Additional Supply YTD Under Construction In Planning

Under Construction In Planning Source: Colliers International Indonesia - Research

Source: Colliers International Indonesia - Research

New Supply Pipeline

6 Quarterly Report | Q2 2016 | Jakarta | Colliers International

Outside CBD exclude TB Simatupang

2016 South Quarter Tower 3 40,778 For Lease Under Construction

7 Quarterly Report | Q2 2016 | Jakarta | Colliers International

Occupancy generally plunged across all office grades. With the

Average Occupancy Rates in the CBD

8 Quarterly Report | Q2 2016 | Jakarta | Colliers International

Source: Colliers International Indonesia - Research

9 Quarterly Report | Q2 2016 | Jakarta | Colliers International

Source: Colliers International Indonesia - Research IDR250,000

Outside the CBD IDR150,000

IDR200,000 2010 2012 2014 2016YTD

Grade A Grade B Grade C All Classes

Outside CBD TB Simatupang

Source: Colliers International Indonesia - Research

10 Quarterly Report | Q2 2016 | Jakarta | Colliers International

Service Charges in the CBD IDR150,000

11 Quarterly Report | Q2 2016 | Jakarta | Colliers International

0 70,000 140,000 210,000 280,000 350,000

2017F Increasing sales triggered office prices of future office build-

The total area of projected strata-title offices outside the CBD

Meanwhile, prices were relatively flat in TB Simatupang YoY

12 Quarterly Report | Q2 2016 | Jakarta | Colliers International

Having said that, we should be more optimistic towards the

Going forward, oversupply condition remains the main concern.

13 Quarterly Report | Q2 2016 | Jakarta | Colliers International

Apartment Sector APARTMENT FOR STRATA-TITLE

As of the middle of 2016, about 40.6% of the 26,583 projected

Suites, which was previously launched as The Residence at Ga-

List of New Introduced/Launched Projects in Q2 2016

15 Quarterly Report | Q2 2016 | Jakarta | Colliers International

Source: Colliers International Indonesia - Research

16 Quarterly Report | Q2 2016 | Jakarta | Colliers International

17 Quarterly Report | Q2 2016 | Jakarta | Colliers International

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

18 Quarterly Report | Q2 2016 | Jakarta | Colliers International

19 Quarterly Report | Q2 2016 | Jakarta | Colliers International

20 Quarterly Report | Q2 2016 | Jakarta | Colliers International

Demand Take-up Comparison between Existing and Under-

21 Quarterly Report | Q2 2016 | Jakarta | Colliers International

has come through relaxation of LTV regulations. The Central

22 Quarterly Report | Q2 2016 | Jakarta | Colliers International

List of Future Supply Serviced Apartment in Jakarta

Distribution of Existing Apartments for Lease (by