Professional Documents
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OFFICE SECTOR Ratu Prabu 2 and Beltway Office Park (Tower A) are
ready for launching as well but are scheduled to
launch the next quarter. Thus, with the addition of
EXECUTIVE SUMMARY
the new office buildings in 4Q06, office stock in the
THE — Supply of office space in Jakarta remained the CBD will rise about 121,554 sq m, while outside the
CBD the two buildings mentioned will contribute
same QoQ. Office buildings which are sched-
KNOWLEDGE
uled to finish this year are expected to be com- another 47,711 sq m to the total office stock.
pleted in 4Q06.
In addition to the total confirmed new developments
— There were no significant changes in occupancy which are currently under construction as depicted
rates QoQ, particularly in the CBD. In general, in the table below, we also hear from several devel-
offices located in South Jakarta experienced a opers that some planned office buildings are pro-
better take-up rates compared to other regions. jected to invigorate the office market over the next
three years. Our findings reveal that 3 office build-
— Meanwhile, strata office transactions were quite ings are planned for the Sudirman area, 2 buildings
slow. Significant take-up occurred at the Mega are scheduled for Gatot Subroto, 2 for Mega
Glodok Kemayoran (MGK) office which is lo- Kuningan,3 for Rasuna Said. These future develop-
cated outside the CBD. However, most other ments are still in the design stage and there are no
transactions were internal acquisitions. With it’s activities in the field. Meanwhile, outside the CBD,
significant take-up, MGK introduced a new price the TB Simatupang area is projected to have several
from the previous Rp10.10 million/sq m to office buildings added.
Rp10.25 million/sq m.
LIST OF UNDER-CONSTRUCTION
— Some buildings in the CBD adjusted their rental OFFICE BUILDINGS IN THE CBD
rates upward. They are mainly buildings with low
vacancies and buildings that have not increased Building
Marketing
Location Schedule
SGA
Scheme (sq m)
their rental rates for several quarters.
Menara Kuningan Rasuna Said Strata 4Q06 33,077
Indofood Tower Sudirman Lease 4Q06 54,606
— Changes in QoQ rental rates were also caused Plaza Marein Sudirman Strata 4Q06 28,244
by a change in rental composition in some build- Sahid Boutique Sudirman Strata 4Q06 5,627
Menara Karya Rasuna Said Lease & 1Q07 32,697
ings which was previously separated between Strata
base rent and service charge. This quarter gross Satrio Tower Satrio Lease 1Q07 60,000
rent was introduced instead as one package. BCA Tower Thamrin Lease 3Q07 82,000
Menara Palma Rasuna Said Lease 3Q07 35,000
Sentral Senayan 2 Senayan Lease 3Q07 59,205
Menara Prima Mega Kuningan Lease & 4Q07 35,000
SUPPLY Strata
The East Mega Kuningan Strata 2007 44,026
Senayan City Forum Senayan Lease 2007 20,436
Most buildings gearing up for their final stage set Pacific Place SCBD, Sudirman Lease 2007 19,000
their launch during the fourth quarter of this year, Graha Energi Sudirman Lease 2Q08 65,686
thus leaving this quarter with no new stock. Menara Bakrie Tower Rasuna Said Strata 4Q08 60,646
Source: Colliers International Indonesia, Research Department
Kuningan, Plaza Marein, and Indofood Tower are build-
ings in the CBD which seem to be ready to launch
but are scheduled for the 4Q06. Outside the CBD,
COLLIERS INTERNATIONAL
QUARTERLY RESEARCH REPORT
JAKARTA
3Q 2006
LIST OF UNDER-CONSTRUCTION Overall, since relocation has dominated most of the transac-
OFFICE BUILDINGS OUTSIDE CBD tions, with only a small portion of tenants expanding, and
newer buildings have registered better absorption rates, the
Marketing SGA
Building Location
Scheme
Schedule
(sq m)
occupancy rate in the CBD only moved modestly upward to
Beltway Office Park - Building Ampera / Simatupang Lease 4Q06 6,634 90.57% from 89.75% last quarter. Despite the fact that four
A major buildings are expected to invigorate the market in 4Q06,
Ratu Prabu 2 TB Simatupang Lease 4Q06 35,900
we anticipate no major changes in occupancy rates by the
Treva Kebayoran Baru Lease 4Q06 5177
One Woltermonginsidi Kebayoran Baru Lease 1Q07 1,456 end of the year as the four new buildings have secured good
CBD Pluit Pluit Strata 2Q07 14,931 absorption rates.
Wisma Pondok Indah 2 Pondok Indah Lease 4Q07 25,846
Talavera TB Simatupang Lease 4Q07 26275
Mega Glodok Kemayoran Kemayoran Strata 2007 7,320
GP Tower (The Belezza) Permata Hijau Strata 2007 19,361
CUMULATIVE SUPPLY, DEMAND
Menara 165 TB Simatupang Lease 2007 29,383 AND OCCUPANCY RATE IN CBD
Recapital Kebayoran Baru Lease 1Q08 9,627
Source: Colliers International Indonesia, Research Department 5,000,000 95%
4,000,000
85%
ANNUAL SUPPLY OFFICE
3,000,000
IN THE CBD 75%
400,000 2,000,000
350,000 65%
1,000,000
300,000
250,000 0 55%
200,000 2000 2001 2002 2003 2004 2005 2006 P 2007 P 2008P
150,000 Supply Demand OR
100,000 Source: Colliers International Indonesia, Research Department
50,000
m2 0
-50,000 1998 2000 2002 2004 2006 2008P
FUTURE DEMAND
P
Lease Sale
Source: Colliers International Indonesia, Research Department Four coming office buildings in the CBD have declared sig-
nificant absorption before their launch—Menara Kuningan,
Plaza Marein, Indofood Tower and low-rise office compound
DEMAND Sahid Boutique Office. The buildings have secured major ten-
ants like oil; food; insurance, and finance companies and a
Leasing transactions in the quarter were similar to transac- group of developers. The four developments have registered
tions in the previous quarter. Oil, insurance, banking, and around 86% absorption before their official opening.
telecommunications companies were tenants with large space
transactions above 2,000 sq m. Again, most all of those trans- Outside the CBD, the absorption pattern for upcoming office
actions were relocations to other premises. Some tenants buildings was similar to the CBD. Despite being dominated
looked for better quality premises and wanted to relocate to by internal acquisitions made by their respective holding com-
the CBD, others relocated within the CBD but are searching panies, strata title office buildings like GP Tower on Belezza
for newer buildings, while other non-service industries relo- and Mega Glodok Kemayoran have also acquired other buy-
cated outside the CBD. Smaller transactions below 1,000 sq ers like finance companies, law firms, and textile and manu-
m were identified in the advertising, IT and shipping indus- facturing companies.
tries.
JAKARTA
3Q 2006
FUTURE OFFICE BUILDINGS IN THE CBD In contrast, the average rental rate for buildings with a US$
WITH THEIR CONFIRMED TENANTS rate edged down slightly by 1%. Although rent for grade B
buildings jumped by 5%, grade A buildings experienced a
SGA
Building Location
(sq m)
Major Committed Tenants decrease. Because the CBD market has more grade A build-
Menara Kuningan Rasuna Said 33,077 Petrochina ings than grade B buildings, the average base rental in US$ for
Plaza Marein Sudirman 28,244 Marein, Developer, Investment, Securities
Sahid Boutique Office Sudirman 5,627 Lasalle College
all classes of buildings was US$12.22/sq m/month, a slight
Indofood Tower Sudirman 54,606 Indofood drop from US$12.31/sq m/month. This quarter was highlighted
BCA Tower Thamrin 82,000 BCA, Platinum Fitness First
Senayan City Forum Senayan 20,436 SCTV
by the adjustment of rental rates in US$ in some thirteen
Bakrie Tower Rasuna Said 53,652 Bakrie Group grade A buildings. Seven buildings edged down the rental rate
Graha Energi Sudirman 65,686 Medco Energi while the remaining edged up the rental rate.
Source: Colliers International Indonesia, Research Department
FUTURE OFFICE BUILDINGS OUTSIDE CBD Outside the CBD, base rent increased by 2.7% during the
WITH THEIR CONFIRMED TENANTS quarter bringing this quarters figure to Rp54,425/sq m/month.
The climb was due to an average rental increase in some
Building Location
SGA
Major Committed Tenants
regions like South, North and West Jakarta.
(sq m)
GP Tower on Bellezza Permata Hijau 19,361 Textile, Law Firm, Finance
Beltway Office Park A TB Simatupang 6,634 Marathon Oil, DuPont
Ratu Prabu 2 TB Simatupang 35,900 ConocoPhillips, Thiess AVERAGE GROSS RENT (ALL
Wisma Pondok Indah 2 Pondok Indah
CBD Pluit Pluit
25,845 Danamon, Ericsson
29,862 Honey Lady
CLASS), CBD OFFICES
Recapital Adityawarman 9,626 Recapital Rp130,000 $20
Source: Colliers International Indonesia, Research Department
$20
Rp120,000 $19
$19
TREND OF RENTAL VS Rp110,000 $18
OCCUPANCY, CBD OFFICE $18
Rp130,000 92% Rp100,000 $17
$17
Rp125,000 90%
Rp90,000 $16
Rp120,000 88%
$16
86%
Rp115,000 Rp80,000 $15
84% 1Q03 2Q033Q03 4Q03 1Q042Q04 3Q044Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06
Rp110,000
82%
Rp105,000 Rupiah US$
80%
Source: Colliers International Indonesia, Research Department
Rp100,000 78%
Rp95,000 76%
Rp90,000
1Q032Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q041Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06
74% AVERAGE GROSS RENT (PREMIUM &
GRADE A), CBD OFFICES
Occupancy Rate Gross Rental Rate
Rp150,000 $20
Source: Colliers International Indonesia, Research Department
Rp140,000 $19
$17
The average rental rate for all classes of buildings climbed Rp120,000
$16
during the quarter by 1.6% to Rp78,683 from Rp77,451/sq Rp110,000 $15
m/month. The overall increase was mostly contributed to by
grade A buildings which increased by 5%, although the aver- Rp100,000 $14
age rental rate for grade B buildings declined by 1%. 1Q032Q03 3Q03 4Q03 1Q042Q04 3Q04 4Q04 1Q05 2Q053Q05 4Q051Q06 2Q063Q06
Rupiah US$
Source: Colliers International Indonesia, Research Department
JAKARTA
3Q 2006
EXECUTIVE SUMMARY
$15
Rp110,000
$14
Rp100,000
— Another 2,164 strata title units entered the market dur-
$13
Rp90,000
ing the quarter bringing the cumulative supply to 41,032
$12 units.
Rp80,000
$11
— With bulky supply and slow absorption, the take-up rate
Rp70,000 $10 weakened.
1Q03 2Q03 3Q034Q03 1Q04 2Q04 3Q04 4Q041Q05 2Q05 3Q05 4Q05 1Q062Q06 3Q06
Rupiah US$ — By the end of this year we do not expect that the apart-
Source: Colliers International Indonesia, Research Department ment market will strengthen. Buyers will be restrained
from buying apartment units after increased spending
during the Islamic holiday and in anticipation of further
PRICE spending for the Christmas and New Year holidays.
In the CBD, there were no changes in price. Prices hovered
between US$1,500 and US$1,700/sq m while those quoted
SUPPLY
in Rupiah ranged from Rp12 million to Rp14 million/sq m. An
adjustment occurred only in the Non-CBD area, where Mega
Glodok Kemayoran set its new price at Rp10.25 million from During the reviewed quarter, the apartment market gained
a previous Rp10.10 million/sq m. On average, the price of 2,164 additional units from four completed projects—The
office space in the Non-CBD area ranged from Rp10 million Peak and Sudirman Park in the CBD as well as Senayan Resi-
to Rp12.5 million/sq m. dence and Somerset Berlian in South Jakarta. With these units
completed, the cumulative supply increased by 5.57% QoQ
or 12.7% YoY to a total of 41,032 units found at 114 projects.
SERVICE CHARGE
The middle-to-low segment (price between Rp6 million and
Maintenance costs moved up further in the quarter for all Rp10 million/sq m) still dominated the market with a propor-
office categories. Overall, the service charge climbed by 3.8% tion of 53.5% followed by the low segment (price below Rp6
to Rp47,934/sq m/month. Likewise, maintenance costs in US$ million/sq m) at 21.6 %. Apartments in the middle-to-low class
buildings shifted up slightly to US$6.11 from US$6.05/sq m/ are mostly scattered throughout South and West Jakarta.
month last quarter. Significant changes in the service charge
occurred mostly in grade A category buildings. Outside the SUPPLY BASED ON
CBD, a modest service charge increase was also noticed from
Rp34,057 to Rp34,273/sq m/month.
SEGMENTATION (UNITS)
Luxury Low
OUTLOOK Upper
(>Rp20 mil) (<Rp6 mil)
1.5% 21.6%
(Rp15-20 mil)
Within the remaining months of the year, we expect no sig- 6.5%
nificant upsurge in rental and maintenance costs. Of course,
there will be some buildings introducing new rates, but this Middle Up
will not significantly impact overall figures. (Rp10-15 mil)
17.0% Middle Low
Leasing activities will remain vibrant over the next period. (Rp6-10 mil)
53.5%
During the low investment season this year, office transac-
tions were still dynamic, albeit dominated by expansion and Source: Colliers International Indonesia, Research Department
relocation. Thus, we expect more active transactions should
the investment realization figure improve.
4 JAKARTA QUARTERLY RESEARCH REPORT
COLLIERS INTERNATIONAL
QUARTERLY RESEARCH REPORT
JAKARTA
3Q 2006
received good market response. Cumulative Supply Sold Unit Take-Up Rate
Despite the Central Bank revision of the prime interest rate For under-construction projects in particular, prices ranged
to 10.75% from a previous 11.25%, the transaction volume from a low of Rp4.2 million/sq m (low segment) to a high of
has not increased because banks have yet to respond by Rp23.3 million/sq m (luxury segment). Details are depicted
lowering their interest rates on loans. To attract buyer inter- in the table below.
est, some developers have strengthened their marketing ef-
fort by offering longer installment periods, allowing no down AVERAGE PRICE OF UNDER CONSTRUCTION
payment, facilitating extensive exhibitions, sponsoring food PROJECT AS AT 3Q2006
festivals, and giving high discount rates for cash payments.
Classification Average Asking Price/sq m
Segmentation
(price/sq m) (in the market)
In general, the take-up rate for existing and under-construc- Low Less than Rp6 million Rp4.2 million
tion projects available in the market is 74.8%, a decrease of Middle Low >= Rp6 - 10 million Rp8.0 million
Middle up > Rp10 - 15 million Rp11.5 million
2% from the previous quarter. The middle-to-low project cat- Upper > Rp15 - 20 million Rp15.4 million
egory performed well within the quarter with an average Luxury Above Rp20 million Rp23.3 million
take-up rate of 76.1%. A limited supply of luxury projects Source: Colliers International Indonesia, Research Department
JAKARTA
3Q 2006
JAKARTA
3Q 2006
RENTAL RATES
JAKARTA
3Q 2006
RETAIL SECTOR The number of strata title centers continued to grow in the
quarter. The composition of retail-for-lease versus retail-for-
sale space in the Jadebotabek area was 61.7% (around 2.61
EXECUTIVE SUMMARY
million sq m) to 38.3% (1.64 million sq m).
— Retail stock grew to 2.83 million sq m in Jakarta, of which
60.9% is retail space for lease.
CUMULATIVE SUPPLY
— Projected additional supply in 4Q06 will be dominated JADEBOTABEK
by the completion of retail centers for lease. 3,500,000
3,000,000
— Retail stock in the Jadebotabek (Jakarta-Depok-Bogor-
2,500,000
Tangerang-Bekasi) area reached 4.28 million sq m with
centers for lease dominating the market at around 61.1%. 2,000,000
1,500,000
0
— The average rental rate in 3Q06 moved downward slightly 2000 2002 2004 1Q06 3Q06 2007F
by 3.4% QoQ.
Cumulative Supply Leased Cumulative Supply Strata
Source: Colliers International Indonesia, Research Department
SUPPLY
LIST OF RETAIL CENTERS OPENED IN 3Q06
In the 3Q06 five shopping centers opened: two centers in
SGA Marketing
Bogor, two centers in Tangerang and one in Jakarta. Tamini Name Location
(sq m)
Anchors
Scheme
Square, a strata title center in East Jakarta, has been in opera- JAKARTA
tion and has secured major tenants like Carrefour, Cahaya Tamini Square East Jakarta 69,920 Carrefour, Cahaya Strata Title
Dept. Store
Dept. Store, Time Zone and Studio 21. With an additional DEBOTABEK
69,920 sq m contributed by this center, Jakarta’s total retail Bellanova Country Bogor 21,000 Hypermart, Time Strata Title
space stands at 2.83 million sq m. Mall Zone
Botanic Square Bogor 45,000 Giant Hypermarket Lease
Serpong Town Square Tangerang 55,583 Giant Hypermarket, Strata Title
Regions like Bogor and Tangerang received additional supply Electronic Solutions
from the completion of projects like Serpong Town Square BSD Junction Tangerang 10,000 No Anchor Tenant Strata Title
Source: Colliers International Indonesia, Research Department
and BSD Junction in Tangerang and Bellanova Country Mall
and Botanic Square in Bogor. Serpong Town Square is an inte-
In the Jadebotabek area, projected future supply from the
grated development consisting of offices, apartments, and a
fourth quarter of this year to 2009 is 707,243 sq m (centers
water park and trade center. The trade center has captured
for lease) and 547,750 sq m (centers for sale).
major tenants including Giant Hypermarket, Electronic Solu-
tion, Sport Warehouse and Time Zone. The other center that
In the 4Q06 a number of projects will be completed in Ja-
opened in Tangerang is the 10,000 sq m BSD Junction which
karta including Bellezza de Heritage Shopping Arcade, Bellagio
operates face-to-face with ITC BSD and is becoming one of
Boutique Mall, Kalibata Plaza (an extension of Kalibata Mall)
the prominent trade centers in the Tangerang area. In Bogor,
and Gajah Mada Square. None are strata title (center for
Bellanova Country Mall (a trade center for sale) was intro-
sale). In Bekasi, Plaza Pondok Gede II will open in 4Q06.
duced in July to serve the community in the Sentul area with
a size of 21,000 sq m. Also launched in Bogor, Botanic Square
is a strategically located mall in the heart of the city with
prompt access to toll roads. With the addition of these four
centers the total cumulative supply of retail space in Debotabek
stands at 1.41 million sq m.
JAKARTA
3Q 2006
150,000 86%
1,000,000
84%
100,000
500,000
50,000 82%
- 80%
0
2001 2002 2003 2004 2005 1Q06 2Q06 3Q06
2006* 2007 2008 2009
For Lease For Strata Title Supply (sq m) Demand (sq m) Occ (%)
* 4Q06 Source: Colliers International Indonesia, Research Department
Source: Colliers International Indonesia, Research Department
DEMAND In the Debotabek area, rent for leased retail centers decreased
by 0.4% QoQ from Rp266,180/sq m/month last quarter to
Hypermarket, local apparel store, electronic, health and life- Rp265,181/sq m/month. This slight adjustment was due to a
style products remained a major player in the demand for rental rate correction by ITC Depok on their secondary units
retail space. Heritage The Factory Outlet started their third and the opening of a new leased center, Botanic Square, which
outlet at BSD Plaza with other outlets in Bandung and on also affected our calculations.
Jalan Barito in Jakarta. Zara and Fitness First expanded with
new outlets in Mal Taman Anggrek. Electronic Solution (8,000 In Jakarta, the average service charge for leased retail centers
sq m) opened in the Jakarta City Center. Giant Hypermarket for this quarter was Rp58,381/sq m/month, down by 3.7%.
also opened a new store at Botanic Square in Bogor. Several For strata title centers, the average service charge was re-
specialty shops opened such as Aprica by Pediatic in Plaza corded at Rp48,923/sq m/month, up 7.66% compared to last
Indonesia, Tumble Tots in Depok Town Square, King Ciber quarters figure of Rp45,441/sq m/month.
(entertainment) in Kenari Mas, and Surline (shoe shop) in
Margo City Square. The average service charge in the Debotabek region for strata
title centers increased slightly by 0.2% (QoQ) to Rp 45,701/
Overall occupancy in Jakarta for the quarter decreased slightly sq m/month while the average service charge for leased centers
to 87.52% from 88.12% in the second quarter. The take-up was Rp46,743/sq m/month.
rate for strata title centers in Jakarta was level at 75.5% while
physical occupancy was 63.85%.
JAKARTA
3Q 2006
Rp50,000,000 Rp50,000
Rp40,000,000 Rp40,000
Rp30,000,000 Rp30,000
Rp20,000,000 Rp20,000
Rp10,000,000 Rp10,000
Rp0 Rp0
Central East North South West Debotabek
J a k a r t a Jakarta Jakarta Jakarta Jakarta
JAKARTA
3Q 2006
EXECUTIVE SUMMARY
IN TERMS OF NUMBER
— There was no additional hotel development in the quar- OF HOTELS
ter.
5 star
— In early September, PT Mandiri Karya Indah Cipta and 23%
Aston International signed an agreement to manage Aston 3 star
Mangga Dua Hotel & Residence which plans to open in 43%
2008.
— The average room rate was not significantly different QoQ. IN TERMS OF HOTEL ROOMS
SUPPLY 3 star
23%
5 star
No new hotel developments were introduced to the market, 39%
a repeat of the situation in the last quarter. This keeps this
quarter’s figure of total hotel rooms at 21,399 rooms. Patria
Park Hotel in East Jakarta is half constructed and will possibly
be on the market in 2007. 4 star
38%
JAKARTA
3Q 2006
80%
Only the 5-star category registered an average negative growth
in ARR during the 3Q06 or a decline of 4.75% from Rp711,051
60% last quarter to Rp677,383 this quarter. Some 5-star hotels
experienced only a minor drop in ARR (ranging from between
40%
Rp10,000 to Rp30,000). One hotel had a significant decrease
20% in the 3-month period of more than Rp300,000. The highest
ARR in the quarter was quoted by the Grand Hyatt followed
0% by the Shangri-La and Ritz Carlton hotels (around Rp1 million).
2001 2002 2003 2004 2005 1Q06 2Q06 3Q06
3 Star 4 Star 5 Star Average In the 4-star category, the ARR was up slightly by 1.8% to
Source: Colliers International Indonesia, Research Department Rp384,977. Only one hotel registered a significant drop in
the 3-month period. The remaining hotels increased their ARR.
Because of stiff internal competition, the hotel industry has This quarter, the highest ARR for the 4-star category was
no option but to continuously encourage improvement. Some quoted by the Ambhara and Park Lane hotels (above
hotels have put rigorous security measures in place to moni- Rp500,000).
tor their surroundings and make sure guests are safe. In addi-
tion, hoteliers are also improving leisure and business facili- The ARR for the 3-star category was recorded at Rp289,176
ties and customer service. New technologies are also being from Rp262,712 last quarter, a jump of 10.1%.
introduced like the installation of plasma televisions and high-
speed broadband Internet access. AVERAGE ROOM RATES (ARR) FOR
3,4 AND 5 STAR HOTELS
The guest profile was still dominated by domestic clients and, Rp800,000
therefore, a downturn in passenger arrivals at Soekarna-Hatta
airport of 1.4% or 289,317 passengers did not impact the
Rp600,000
overall occupancy rate.
Rp400,000
Rp200,000
Rp0
2001 2002 2003 2004 2005 1Q06 2Q06 3Q06
JAKARTA
3Q 2006
Rp200,000
— Accordingly, slow absorption this year has caused prices
and tariffs to remain relatively stable. Developers prefer
Rp100,000
to maintain prices and give attractive discounts when
inquiries for large land parcels are made.
Rp0
2001 2002 2003 2004 2005 1Q06 2Q06 3Q06
— This quarters transactions were highlighted by a signifi-
3 Star 4 Star 5 Star cant land transaction of 9.9 hectares in the Bekasi Fajar
Source: Colliers International Indonesia, Research Department
Industrial Estate by Toyota Astra Motor for logistic pur-
poses.
OUTLOOK
SUPPLY
The hotel outlook for the year ahead looks positive given the
decision by the government and House of Representatives to
Developers are more conservative about starting their next
approve a tourism fund increase for promotion and marketing.
phase of development given that there are plenty of unsold
The fund was raised to Rp158 billion for 2007 from the current
land parcels within the regions. The decision to put off
Rp110 billion this year.
expansion is also attributable to the downturn in sales during
the year. Now, managements are focusing on selling remaining
Hoteliers are trying to form a program for selling special
stock. Regions like Bekasi, where stocks of land are being scaled
packages in coordination with travel agents and the tourism
down, have not had any industrial estates introduce new
bureau. In addition, hoteliers are now more focused on offering
portions of their stock this year. However, the prominent
special packages to domestic guests in return for their help in
industrial estate MM2100 is planning to open a new phase of
propelling the hotel market.
industrial land with a total of around 200 hectares (70% of it
is serviceable industrial land).
The Visa Indonesia Tourism Spend Report revealed spending
figures for 2005. Total Visa International inbound spending in
Jakarta will definitely have no fresh stock of industrial land as
Indonesia increased by 20% to Rp5.6 trillion (US$579 mil-
vacant land parcels in Jakarta are very expensive for industrial
lion), despite a 6% drop in foreign visitor arrivals. This indi-
purposes and are more suitable for multi-level commercial
cates that Indonesia has great internal potential for the tour-
buildings.
ism industry. It is now imperative that continued measures be
taken to stem the misperceptions of Indonesia in relation to
From Cilegon in the west to Purwakarta in the east, the total
avian influenza, tsunamis and terrorism.
amount of serviceable industrial land remains at 8,566
hectares.
JAKARTA
3Q 2006
JAKARTA
3Q 2006
The content of this report is for information only and should not be relied upon as a substitute for professional advice, which should be sought from Colliers International prior to acting in reliance upon any such information.
The opinions, estimates and information given herein or otherwise in relation hereto are made by Colliers International and affiliated companies in their best judgement, in the utmost good faith and are as far as possible
based on data or sources which they believe to be reliable in the contest hereto. Notwithstanding, Colliers International and affiliated companies disclaim to the extent permitted by law, any liability in respect of any claim
which may arise from any errors or omissions or from providing such advice, opinions, judgement or information.