MARKETBEAT

Industrial Snapshot Q1 2016

Greater Jakarta

GREATER JAKARTA INDUSTRIAL Economy

Indonesia GDP growth is projected to reach the lower end of
Economic Indicators
the forecasted 4.9% - 5.3% range during the first quarter of
2014 2015 2016F
2016. The stock market continues to show improvement with an
GDP Growth 5.01% 4.8% 4.9 5.3% increase of 6.3% during the first quarter, closing at 4,885 on
Inflation Rate 8.36% 5.0% 4.0% March 18th 2016. On the currency side, the Rupiah experienced
Central Bank Rate 7.75% 7.5% 6.75% further appreciation of 4.0% to 13,098 per US$ 1.00, whilst Year-
to-date inflation reached 4.2%, within the projected range of 3%
to 5% by Bank Indonesia.
Market Indicators
Q1 15 Q1 16
12-Month Market Overview
Forecast In the absent of major demand generator, this quarter recorded a
Overall Sales Rate 74.9% 67.2%
lowest quarterly net demand since 1Q2014 of only about 19.4
Net Absorption (Ha) 80.5 19.4 Ha. These 1Q2016 land sales represented a net demand
Overall Average Price decrease of about 1% QoQ and on a year-on-year basis, it was
2,310,000 2,600,000
(Rp psm)
about 76% lower than the 80 Ha sold in the same quarter last
year.

Net Absorption/Land Price With significant less demand and more new supply during the
1Q TRAILING AVERAGE review quarter, the cumulative sales rate decreased to 67.2%,
from 67.9% in the previous quarter.
350 3,000,000
300 2,500,000 There was no particular sector dominating the demand in this
250 quarter, however, demand mostly came from supporting
2,000,000
200 industries such as logistics which was reflected in the lower
1,500,000 average demand size of only about 2 Ha.
150
1,000,000
100
500,000
A major IE in the eastern Greater Jakarta released about 160-Ha
50
prepared land to the market and increased the cumulative supply
- -
of industrial land in the Greater Jakarta area to about 12,740 Ha.
2010 2011 2012 2013 2014 2015 1Q2016
In the reviewed quarter, industrial estates in Bekasi-Karawang
Net Absorption, Ha Price, Rp psm
corridors dominated the transactions and enjoyed most share of
about 70% of the demand. Remaining demand was mostly
Overall Sales Rate absorbed by Industrial estates in Serang area.

85% The asking price of prepared industrial land remained stable. The
estimated average achieved land price in IDR stood at
80%
Rp2,600,000 psm (+2.4% QoQ). In USD, it grew to $197 per
square meter (5.9% QoQ).
75%
Historical Average = 71.9%
70% Outlook
Despite the low net demand in the first quarter 2016, the demand
65% is expected to be stronger and recovered in remaining quarters.
Inquiries for prepared industrial land may be active but still with
60% no dominant demand generator. Asking price is projected to
2010 2011 2012 2013 2014 2015 1Q2016
remain stable.
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 MARKETBEAT

Industrial Snapshot Q1 2016

Greater Jakarta

CUMMULATIVE QUARTERLY OVERALL AVG.

SUBMARKET INVENTORY YTD DEMAND AVG. LAND PRICE NET RENT
DEMAND DEMAND SALES RATE (W/D)

(Ha) (Ha) (Ha) (Ha) (IDR/sq.m) (/sq.m) (US$/sq.ft) (US$/sq.ft pa)

Jakarta 1,089 942 0.0 0.0 86.47% 5,250,000 357.6 37.0 NA

Tangerang 772 521 0.0 0.0 67.47% 2,600,000 177.1 18.3 13.4

Bekasi 4,555 3,450 11.9 11.9 75.74% 2,598,487 177.0 18.3 6.9

Karawang & Purwakarta 3,389 2,296 2.0 2.0 67.74% 1,892,018 128.9 13.3 6.7

Serang 2,855 1,288 5.5 5.5 45.10% 1,675,000 114.1 11.8 4.2

Bogor 80 64 0.0 0.0 80.41% 2,000,000 136.2 14.1 3.0

GREATER JAKARTA TOTALS 12,740.3 8,560.1 19.4 19.4 67.2% 2,600,000 177.1 18.3 7.8

W/D = Warehouse/Distribution

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Copyright 2016 Cushman & Wakefield. All rights reserved. The information contained within this report is gathered from multiple sources considered
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