While enquiries continue to derive from tenants looking for better quality space, net take-up in the first three months fell from a quarter ago.

Entering 2020, the global economy was shaken by the COVID-19 pandemic which started in Wuhan, China. At the time of writing, it has spread to over 210 countries.  

Indonesia announced its first confirmed cases in early March and as the government imposed strict social distancing rules, businesses began to feel the impact of the pandemic. Travel, hospitality and aviation were all badly hit in the early stages, followed by other sectors, including property.

Despite the outbreak, Indonesia’s economy grew by 2.97% during Q1/2020 on the back of government spending and external demand growth. The first quarter figures were relatively strong compared to many other countries in the region which saw GDP growth rates falling into negative territory over the same period.

However, growth in total direct investment slowed to 8.0% (IDR2,010 trillion) in Q1 compared with 12.0% in the previous quarter. With growing concerns surrounding the pandemic, it is anticipated that the economy will continue to give up ground over the remainder of 2020 as investors hold back.