Outlook 2023 Indonesia

JAKARTA KEY MESSAGES

SUPPLY

DEMAND

RENTS

KEY OUTLOOK

 Two new projects: Mori Tower and Autograph Tower will enter the Jakarta CBD Office market in 2023.  After 2023, new supply is forecast to decline to an average of 50,000 sqm per year.

 Net absorption is expected to slow down in 2023 as tenants will be in cautious in their decisions on their office premises, in anticipation of the predicted global slowdown.  Vacancy is expected to remain high with the completion of large office projects in 2023 which may exceed demand. ​

 Rents are expected to remain under pressure in 2023 due to the tough competition in a relatively ‘thin market’.  Some landlords will likely continue offering very ‘generous’ discounts of their published rental rates to attract new tenants into their buildings.

 The robust economy of Indonesia and smooth political

campaign process in 2023 towards general election in 2024 will maintain office demand within positive territory.