The latest market insight about all property market sectors, including office building, retail, and industrial space
Despite surprisingly achieving economic growth of 5.1% in 2025, yet, the global tension became sharper as there was potential threat of oil-price increase. By the end of the running quarter, there was no confirmation yet that fuel price would be increased. However, many corporations became cautious pertaining to the potential fuel price issue. The government enacted WFH (Work From Home) policy for once-a-week to government institutions in March this year, while for private sectors, the policy was not obligatory. Hence, we would expect that some corporations would still inquire for business space.
Overall rental is expected to stabilize despite the absence of new supply, especially in the CBD, yet, rental in the OCBD market might be adjusted as in the first quarter this year, it registered negative achievement, while expecting some new supplies by end of 2026.
Omnibus Law: What would be the significance towards Property Market?
Indonesia has been fed by flashy news recently, called Job Creation Law (Undang Undang Cipta Kerja) or well known as the “Omnibus Law”. It is, actually, aimed to improve the ease of doing business and stimulate investment climate, especially under the hit on our economy due to COVID-19 pandemic.
Further Restriction, Further “Delay” of Business Operational Improvement.
During the implementation of “New Normal” in the previous quarter, business activities contracted as operations resumed. However, surging case of Covid-19 in Q3 2020 urged Jakarta Governor to impose further restriction to 25% of capacity in September, bringing business to further decelerate.
Welcoming the New Normal :
The continuation of COVID-19 Pandemic situation has led Indonesia to adjust their lifestyle as well as how-to-do business in property market as they are urged to modify their strategy in order to adapt to the new normal situation.
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