ECONOMIC INDICATORS

The Indonesian economy has recorded economic growth at the beginning of 2024 of 5.11% with foreign investment showing a positive trend at US$13.6 billion, mostly driven by the manufacturing sector. Investor interest in Indonesia is broadening beyond just Jakarta to include other major cities off Java Island, a trend which is being supported by infrastructure improvements.

Indonesia’s inflation in 2023 was recorded at 2.61% YoY, remaining within the target range of 3±1% and Bank Indonesia is confident that inflation will remain manageable in the 2.5%±1% target corridor in 2024. Consumer Price Index (CPI) inflation in January 2024 was recorded at 2.57% YoY, below the December 2023 figure of 2.61% YoY. Inflation in January remained under control. Amid still high uncertainty, one of which is ongoing weather disruption from El Nino, Indonesia has been able to control inflation within the target range.

OFFICE MARKET PERFORMANCE

Office stock in Jakarta accounts for more than 90% of the country’s total and is therefore a proxy for office market performance in Indonesia. 

Total stock of office space in Jakartastood at 9.3 sq m, where about 66.3% is concentrated in the CBD area, while the remaining 33.7% is located outside the CBD area. In the CBD area, Grade A offices dominate the market with about 60.2% of total supply. Outside the CBD, South Jakarta accounts for most of the stock with 50.1%, followed by Central Jakarta and West Jakarta with 23.1% and 17.6%, respectively.