Indonesia’s Real Estate Outlook 2024

Navigating
Uncertainty with
Cautious Optimism
• Asia Pacific Market Outlook: 2024
• Jakarta Property Market Update
• Jakarta & Bali Hotels Market Performance

Client Webinar
February 2024
Asia Pacific Market
Outlook: 2024

James Taylor
Head of Research, Work Dynamics
Asia Pacific
Global real estate
sentiment survey 80%

Over the next six months, do you think

60%
market conditions will:
49%
29%
40% 22%
Improve
20%
27% 31% 26%
0%
Stay the same
-24%
-20% -41%
-51%
Worsen
-40%

-60%
Source: JLL, October 2023
Americas EMEA Asia Pacific
 Key takeaways

Economic growth slowing Workers coming back to Companies gradually

but still positive the office but still want settling on longer term
flexibility workplace plans

Leasing market maintains High-quality buildings End-users drive trades as

positive momentum continue to outshine investors still cautious

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Risks I Geopolitical risks & uncertainty are elevated
There are few reasons to think that risk and uncertainty will abate in the coming year

Fiscal
cuts

UK
US
US Israel- government
Ukraine
Hamas shutdown?
India Interest
rates

Elections Conflict Policy

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Risks I The biggest election year in history
More people will vote in 2024 than in any previous year. Not all these elections are major.

Presidential election

Local or municipal elections

General election:
Change in government
Foregone conclusion? is expected

EU states electing
block’s next
parliament

Source: The Economist, “2024 is the biggest election year in history.”

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Growth I Still considerable uncertainty around the outlook

GDP forecast (% YoY)

APAC to
8.0 outperform
7.0

6.0

5.0

4.0

3.0

2.0

1.0

0.0

-1.0
India China Hong Kong Taiwan Singapore USA Australia Japan France Eurozone UK Germany
2024 range of forecasts 2024 mean forecast 2023 mean forecast
Source: Oxford Economics (January 2024)

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 Where are we today?

Employers say “Fully remote is not Employees say “We want to maintain
acceptable” our flexibility”

87% of employers globally are APAC employees are working in the office
encouraging work at the office at least 3.5 days a week (Vs 3.1 days globally)
some of the time.

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Is return to office plateauing???
Asia Pacific office re-entry rate

100%

90%
81%
80%

70%

60%

50%

40%

30%

20%

10%

0%
Source: JLL Research
Feb-21 May-21 Aug-21 Nov-21 Feb-22 May-22 Aug-22 Nov-22 Feb-23 May-23 Aug-23 Nov-23

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It’s a nuanced story
Global office re-entry rates

2021 2022 2024

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Beijing
Shanghai
Hong Kong
Tokyo
Seoul
Singapore
Bangkok
Bengaluru
Delhi
Sydney
APAC

Dallas
Austin
Chicago
New York
San Fran.
US

Frankfurt
London
Paris
Stockholm
Warsaw
Europe

Low (< 40%) Medium (40%-75%) High (75%-90%) Normal (90%+)

Source: JLL Research, Property Council of Australia

Note: Regional averages include more markets than displayed

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Occupancy peaks
midweek and drops off
on Monday and Friday

WEDNESDAY

PREFERENCE
THURSDAY
TUESDAY
MONDAY

NO
FRIDAY
% of employees in APAC who indicate a
preference for working in the office (by
day of week)
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Corporates are focused
on cost cutting

86% of corporates globally are focused on

reducing operating costs

Utilization rates are generally below 60%

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Corporates want people
back in offices but they
must meet employee
expectations 42% of space globally has been adapted for
hybrid work

More than half of employees’ time in hybrid

offices is dedicated to individual work

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Human experience in the office

>20%
11-20% Where should
90% Importance employers focus their
efforts?
80%

Satisfaction
70%

Sound Acoustics IT Human Desk booking Nutrition

privacy help desk leadership* system
Focused Focused Technology Thermal Happiness Chair in
individual work work at work comfort at work the office
in the office in the office

11 to 20%
Source: JLL Research, 2023
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Muted leasing activity but APAC displaying more resiliency

Office leasing volumes vs historic quarterly average

30%

20%
Leasing % of quarterly average*

10% +7%

0%

-10%

-20% -24%
-30% -28%
-33%
-40%

-50%

-60%

Asia Pacific Europe U.S. Global

Source: JLL Research, Q4 2023

Note: 23 markets in Europe; 50 markets in the U.S.; 22 markets in Asia Pacific.
Quarterly average over 2017-2019

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Markets finding support from traditional industries

Share of office lease transactions Share of office area leased

25% 40%

20%
20%
18% 30%

15% 14% 23%

20%
17%
10%
10% 14%
7% 13%

10%
5%
5%

0% 0%
Professional Finance Technology Real Estate Manufacturing Finance Technology Professional Real Estate Manufacturing
Service Service

2019 2020 2021 2022 2023 2019 2020 2021 2022 2023

Source: JLL Research, Q4 2023

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Construction activity is still strong…

APAC office

7 +6.3 m 18%
sqm
16%
6
14%
5
12%
Millions sqm

4 10%

3 8%

6%
2
4%
1
2%

0 0%
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Total completions Net absorption Vacancy rate (rhs)

Source: JLL Research, Q4 2023
Note: Net leasable area

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 …particularly in China & India

Office completions, 2024-2028

Australasia,
2.2M
North Asia,
3.3M

India, 11.1M

Southeast
Asia, 3.5M

70%
of supply additions in China
and India will be concentrated
Greater
China, 7.8M in decentralized areas
Source: JLL Research, Q4 2023
Note: Net leasable area

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 New supply putting upward pressure on vacancy
APAC office

40%
36%
35%

30%
26%
25%
21%
20% 19% 18%
16%
15%
15% 13%
10% 10%
10% 9%
7%
5% 5%
5%
2%
1%
0%

Q4 2019 Q4 2023
Source: JLL Research, Q4 2023
Note: Vacancy is for the main submarket

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Rents haven’t returned to pre-covid levels in many markets
APAC office

Rental index Rental performance since onset of pandemic

Change since
125 Q4 2019 50% 45%

40%
120
-7%
30%
115
20%
Q1 2013 = 100

12% 12%

110 10%
4% 4% 3%
1%
0%
105
-4%
-10%
-11%
100
- -14%
-20% -19% -19%
-24% -25%
-30%
95 -30%

-40%
90
Q2 2013
Q4 2013
Q2 2014
Q4 2014
Q2 2015
Q4 2015
Q2 2016
Q4 2016
Q2 2017
Q4 2017
Q2 2018
Q4 2018
Q2 2019
Q4 2019
Q2 2020
Q4 2020
Q2 2021
Q4 2021
Q2 2022
Q4 2022
Q2 2023
Q4 2023
Source: JLL Research, Q4 2023
Note: Both charts reflect net effective rents. Rental index is a stock-weighted average of rental movements for the main submarket and include more cities than shown in the right chart

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But more balanced conditions on the horizon
APAC office

Rental growth
10% 2024F
8% 2025F

6%

4%

2%

0%

-2%

-4%

-6%

-8%

Source: JLL Research, Q4 2023

Note: Rents are on a net effective basis and for main submarket

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High-quality assets outpacing the competition

Vacancy Rental performance

20% 110
Premium Grade A 18.2% Premium Grade A Change since
Q4 2019
18% 108

16% 106 +7.1%

14% 795 bps 104

Q4 2019 = 100
12% 559 bps 102

10% 100
10.2%
-2.0%
8% 98
- -
6% 96

4% 94

2% 92

0% 90

Source: JLL Research, Q4 2023 Source: JLL Research, Q4 2023

Note: Vacancy rates are for the main submarket Note: Indexes are a stock-weighted average of net effective rents for the main submarket

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Green assets command a premium in a world polarized on green
ambitions

Rental premium for green certified Grade A office buildings

Beijing

Top 3 Delhi NCR

12%
11%
Chengdu
10% Shanghai
Guangzhou 8%
considerations when leasing Mumbai
7% Hong Kong
11% 22%
real estate Bengaluru
Chennai Bangkok
9% 14%
1. Site Location 13%

2. Rental Singapore
7%
3. Sustainability credentials

Source: JLL Responsible Real Estate Survey 2021 Source: JLL Research, 2023
Note: Grade A office Melbourne
6%
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Green certified office stock is on the rise

City-wide green certified Grade A office stock (By NLA)

Proportion of green certified stock in APAC* Singapore 91%
Melbourne 90%
81% 77%
72% Sydney 80%

7 in 10
67% Delhi 51%
62% Tokyo
58% 51%
54% 53% Chennai 50%
Mumbai 46%
newly build Grade Jakarta 46%
46% 47% Bangkok
A office buildings
45%
42% Seoul
38% 45%
33%
are green certified 23% 28%
Shanghai
Beijing
44%
40%
in APAC* 19% Bengaluru 39%
Guangzhou 35%
Kuala Lumpur 35%
2016 2017 2018 2019 2020 2021 2022 2023
Osaka 33%
Hong Kong 29%
Green certified Not green certified Hanoi 28%
Ho Chi Minh 21%
*cities included are listed in the chart on the right APAC Average 47%
Green Certified Non-Green Certifed
Source: JLL Research, 2023
*across 20 cities that are part of this research.
 Green building certifications do not guarantee energy efficiency

Energy Use Intensity (EUI) distribution of all office buildings in Singapore

• Energy Use Intensity (EUI) is

the prime indicator of a building’s
energy performance.
• Currently highly energy efficient
buildings run at an EUI of 180-
200, however this level is not
enough to take the built
environment to a NZC future.
• As per Energy Star,
an EUI <70 should be targeted
for buildings to operate at a near
NZC or NZC omissions ready
state.
Average
Energy Use Intensity: Energy Use Intensity (EUI)
refers to the amount of energy used per square foot
annually. It's calculated by dividing the total energy
consumed by the building in a year by the total gross
floor area.

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A zero-carbon operations building is
✓ electric,
✓ highly rated,
✓ energy efficient and
✓ 100% powered by renewable energy

There are no such buildings in Asia Pacific

Definition source: WGBC
Demand from 2030 NZC targets causing a supply deficit

Sydney CBD Hong Kong Mumbai

4,000 8,000 16,000

Thousands sq ft
3,500 7,000 14,000
Thousands sq ft

Thousands sq ft
84% 68% 62%
3,000 6,000 12,000
under under under
2,500 supply 5,000 supply 10,000 supply
2,000 4,000 8,000
1,500 3,000 6,000
1,000 2,000 4,000
500 1,000 2,000
- - 0

Singapore Melbourne CBD Delhi

5,000 2,000 12,000

Thousands sq ft
56% 44%

Thousands sq ft
43%
Thousands sq ft

4,000 10,000
under 1,500 under under
supply supply 8,000 supply
3,000
1,000 6,000
2,000
4,000
500
1,000 2,000
- - 0
Source: JLL Research, 2023

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 500 million sq ft retrofitting opportunity across APAC
Proportion of Grade A office space built before 2011

Building age* distribution of Grade A office stock in Asia Pacific

100%

90%

80%
79%
70%
70% 69%
60% 66%

57% 57%
50% 53%
50% 50% 48% 47%
40%
41%
37% 37%
30% 33% 32% 30%
20%
22%
18% 17%
10%
7%
0%

Manila
Melbourne

Kuala Lumpur

Delhi NCR

Hanoi
Singapore

Bengaluru

Chengdu
Beijing

Shanghai
Osaka

Chennai

Mumbai
Sydney

Tokyo

Guangzhou
Hong Kong

Bangkok

Seoul

Jakarta
Ho Chi Minh
Source: JLL Research, 2023 Pre 2011 2011-2023

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29
Quick recovery in logistics demand after shallow dip

Asia Pacific net absorption as a % of stock

14.0%

12.0%

10.0%

8.0%

6.0%

4.0%

2.0%

0.0%
Q4 Q4 Q4 Q4 Q4 Q4 Q4 Q4 Q4 Q4
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
NA (y-y) as a % of stock NA long term average

Source: JLL, 4Q23

*Based on JLL REIS coverage (GFA) across 35 markets; Methodology may differ between 30
markets due to different market norms
 000000
people
1 1 1 1 1to1move to
cities in Asia Pacific
2 2 2 2 2 2
every week, providing
3 3 3term
long 3 3 3growth in
real estate demand
444444
Source: United Nations (2022)

555555
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Live Work Play
Jakarta Property
Market Update

Yunus Karim
Head of Research, Indonesia
 A Glimpse into Indonesia
GDP growth Foreign direct investments
2023 2024F 5.3% USD
4.9% USD
GDP Growth 5.05% (9 months) 4.7% - 5.5% 3.7% 45.6 B
50.3 B
USD USD
31.1 B
Benchmark interest rate 6% 6% 28.7 B

Inflation rate 2.6% 1.5% - 3.5%

Exchange rate IDR 15,439 IDR 15,750 2020 2021 2022 3Q23
2020 2021 2022 2023
-2.1%

The most populous in SEA; 4th in the world USD-IDR exchange rate
• More than 270 million; steady annual growth at 1% IDR 15,487
IDR 15,439
• 54% millennial and Gen Z – more tech-savvy
• Growing middle class
IDR 15,062 IDR 15,034
Asia’s emerging market
• The largest GDP in SEA; 5th in Asia
• GDP per capita: USD 4,784 (as of 2022); Upper-middle income End of 1Q23 End of 2Q23 End of 3Q23 End of 4Q23
• The highest digital economy in SEA (USD 76bn in 2022)
Benchmark interest & and inflation rates
Resilient economy
5.75% 5.75% 5.75% 6.00%
• Manufacturing remains dominant in GDP and is a key driver for 5.0%
foreign and local direct investments. 3.5%
2.3% 2.6%

Uncertainty remains due to global headwinds

End of 1Q23 End of 2Q23 End of 3Q23 End of 4Q23
Interest rate Inflation

Source: Central Statistics Agency (BPS), Bank Indonesia, World Bank, NSWI Ministry of Investments, Google Temasek & Bain, Oxford Economics

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Jakarta CBD Office
Net demand, new supply, and cumulative occupancy rate Summary
10-year average new supply: ± 260,000 sqm
• An improved demand was seen in 2023. Tenants cautiously resumed
10-year average net demand: ± 76,000 sqm
executing their real estate plans, aligning with the ongoing flight-to-quality trend
600,000 100% and cost-saving strategies. Despite this improvement, most tenants required
relatively smaller workspaces.
500,000 90%
• Only one new Grade A office building was completed and fully operational

Occupancy
400,000 80% in 2023, with a total area of 90,000 sqm, finished in the first quarter.
Sqm

300,000 70% • Grade A rents continued to decline but at a slower rate, at around -1.9%
q-o-q and -8.0% y-o-y. Several better-grade buildings with above-average
200,000 60% occupancy levels were seen maintaining their rents.
• The flight-to-quality trend and cost-saving strategies are expected to
100,000 50%
persist. With less new supply and steady demand, we anticipate a slightly
0 40% improved occupancy rate for Grade A office buildings in the upcoming quarters,
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 driven by positive demand from technology, energy, and financial companies.
-100,000 30%
Net Demand New Supply Occupancy Rate
Premium and Grade A rental rates
Grade A growth in 2022: - 9.0%
Statistics
Grade A growth in 2023: - 8.0%
IDR per sqm per month

500,000
2023 2024
400,000

300,000 Growth Rents New Supply 131,600 sqm Less

slowing falling
200,000
Net Demand 9,155 sqm Stable
100,000
Rents Decline
0 Occupancy Rate ± 70% Stable
rising slowing
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028

2024 Decline at a
Grade A Rental Growth - 8.0%
Premium Grade A slower rate

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Jakarta Non-CBD Office
Net demand, new supply, and cumulative occupancy rate Summary
10-year average new supply: ± 139,000 sqm
10-year average net demand: ± 63,000 sqm • Continued weakened demand was observed in several Non-CBD areas,
similar to 2022. The flight-to-quality trend has driven tenants and potential
400,000 100% occupiers to prioritise higher-quality and newer buildings in strategically located
95% areas, especially with proximity to public transportation.
300,000 • Only one new office building was completed in 2023. It is located in the
90%
Central Jakarta area and has a size of approximately 27,000 sqm. In the Non-

Occupancy
200,000 85% CBD area, we anticipate more new office buildings fully operational in 2024.
Sqm

80% • Rents in the Non-CBD areas continued to decline, with a recorded decrease
100,000
of around -1.2% q-o-q and -2.9% y-o-y. The competitive rents in all Non-CBD
75% areas persist due to relatively low occupancy rates and high existing supply.
70% Similar to CBD, a number of higher-quality buildings with occupancy rates above
- average were observed to be retaining their rental prices.
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 65%
• The ongoing flight-to-quality trend and cost-saving strategies influence the office
-100,000 60% sector in the Non-CBD areas. As a result, suppressed occupancy and
competitive rents are still expected in the following quarters.
Net Demand New Supply Occupancy Rate

Rental rates
Overall growth in 2022: - 2.2%
Overall growth in 2023: - 2.9%
Statistics
200,000
IDR per sqm per month

2023 2024
150,000

100,000 Growth Rents New Supply 27,200 sqm More

slowing falling
50,000
Net Demand - 12,945 sqm Stable
-
2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

Rents Decline
rising slowing Occupancy Rate ± 71% Falling
Central Jakarta South Jakarta
Decline at a
North Jakarta East Jakarta 2024 Rental Growth - 2.9%
West Jakarta TB Simatupang slower rate

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Jakarta Retail
Net demand, new supply, and cumulative occupancy rate Summary
10-year average new supply: ± 55,200 sqm
10-year average net demand: ± 36,600 sqm
• No new developments were completed by the end of 2023. However,
several new malls are expected to enter the market by next year.
150,000 100%
• To meet the changing demands of their loyal customers and stay up-to-date with
95% current trends, numerous malls have renovated and adjusted their tenant
88.5% mix. This shift is also evident in department stores and supermarkets as they
100,000 90%
seek to cater to evolving consumer needs.

Occupancy
85%
• 2023 witnessed the introduction of several new international brands
Sqm

50,000 80% across different sectors, including food and beverage, beauty, and athleisure.
75% • Prime malls are experiencing continuous annual rent growth due to a lack
0 70% of supply and high demand, indicating a rent growth of 3.1% in 2023. Low
single-digit yearly rent growth is reasonably typical in Jakarta.
65%
-50,000 60%
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028

Net Demand New Supply Occupancy Rate

Rental rates
Prime malls growth in 2022: 2.9%
1,000,000
Prime malls growth in 2023: 3.1%
Statistics
IDR per sqm per month

800,000 2023 2024

600,000
Growth Rents New Supply 0 sqm More
slowing falling
400,000
Net Demand ± 22,000 sqm More
200,000
Rents Decline
0 rising slowing Occupancy Rate ± 88.5% Slightly decline
2015

2022

2028
2014

2016
2017
2018
2019
2020
2021

2023
2024
2025
2026
2027

2024 Prime Malls Rental Growth 3.1% Stable

Upper Middle Middle Low

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Jakarta Condominiums
Demand, new launches, and cumulative sales rate Summary
10-year average new supply: ± 6,100 units
• Compared to 2022, condominium demand weakened due to the lack of new
10-year average net demand: ± 5,200 units
launches and the wait-and-see approach.
25,000 100%
• No new condominiums were launched during the fourth quarter. In 2023, the
market witnessed the introduction of only two new projects.
20,000 80%
• Despite lower demand, prices for upper and middle-grade condominiums
59% increased slightly. This price uptick was primarily driven by projects that were

Sales Rate
15,000 60% able to successfully sell their units.
Units

• A number of investors and developers are planning to launch new

10,000 40% condominium projects in 2024. However, the decision to launch is expected to
be influenced by market conditions, particularly as it is a political year for
5,000 20% Indonesia.

0 0%
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Demand New Launches Cumulative Sales Rate
Sales prices
All grades growth in 2022: 0.0%
All grades growth in 2023: 1.1%
Statistics
70
IDR million per sqm

60 2023 2024
50
40 Growth Sentiment New Launches ± 328 units Similar
slowing falling
30
20 Total Demand ± 591 units Similar
10
Sentiment Decline
0 rising slowing Sales Rate 59% Similar
2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

Sales Price Growth 1.1% Similar

Lower middle Middle Upper High-end Luxury 2024

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Greater Jakarta Landed Housing
Demand, new launches, and cumulative sales rate Summary
5-year average new launches: ± 13,600 units
• Sales rates have remained robust across various locations, particularly in
5-year average new demand: ± 13,100 units
Bogor and Tangerang. Tangerang, home to 50% of the notable townships,
20,000 100% offers a wide array of products that are accompanied by attractive discounts and
84% flexible payment terms.
80%
15,000 • Developers have demonstrated resilience by actively launching new
clusters. Even previously quieter townships have joined in by introducing new

Sales Rate
60%
Units

clusters.
10,000
40% • Factors such as good accessibility to toll roads and public transportation,
developers’ reputation, and supporting commercial facilities are of utmost
5,000 importance when potential buyers consider purchasing a landed house unit.
20%
• The landed housing market continues to thrive. Notably, the government has
0 0% introduced a new regulation, PMK 120/2023 by the Ministry of Finance, which
2017 2018 2019 2020 2021 2022 2023 grants residential VAT waiver from 1 November 2023 to 31 December 2024.
• New townships have been officially launched in Tangerang and Bogor.
Demand New Launches Cumulative Sales Rate
Additionally, foreign developers are actively partnering with local developers,
Sold Units in 2H23 by Price resulting in joint ventures. Several projects have already been introduced in
Tangerang, with more on the horizon in Bekasi and Bogor.

1.3 - 2.0 B, 12%

2.0 - 3.0 B, 12%
Statistics
Growth Sentiment
2023 2024
slowing falling
> 3.0 B, 9%
New Launches ± 13,800 units Less
2024

Sentiment Decline
Total Demand ± 13,800 units Less
rising slowing

< 0.6 B, 26% Sales Rate ± 84% Healthy

0.6 - 1.3 B, 40%

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Greater Jakarta Logistics Warehouse
Net demand, new supply, and cumulative occupancy rate Summary
5-year average new supply: ± 252,000 sqm • The market saw a record year for both supply and demand. The new
5-year average net demand: ± 209,500 sqm projects were dispersed throughout the Greater Jakarta areas, with one notable
400,000 90% 100% development being a 5-story warehouse, a first for the market.
• The tenancy mix for modern logistics warehouses remained dominated by
80% third-party logistics providers, highlighting their importance in the industry.
300,000

Occupancy Rate
• In addition, there was a noticeable increase in demand for warehouses with
60%
Sqm

dual functionality, serving as storage facilities and workshops. Responding to

200,000 this demand, developers have gone the extra mile by offering extensive
40% flexibility in the form of comprehensive packages to cater to the needs of
potential tenants.
100,000
20%
• Rising competition among warehouse developers was observed,
particularly in popular areas like Cikarang. Effective pricing strategies and
0 0% attractive payment options played a pivotal role in differentiating developers and
2018 2019 2020 2021 2022 2023
attracting potential tenants.
Net Demand New Supply Cumulative Occupancy Rate
Rental rate index (2018 = 100)
115 Statistics

2023 2024

110
Growth Rents New Supply ± 365,000 Less
slowing falling
Index

2024
Net Demand ± 284,000 Less
105
Rents Decline
rising slowing Occupancy Rate ± 90% Slightly decline

100 Rental Growth Modest Modest

2018 2019 2020 2021 2022 2023

41 | © 2024 Jones Lang LaSalle IP, Inc. All rights reserved.

 Indonesia Investments Overview

Investors remain Investment realization by location and industry 2023 Others

12% Manufacturing
interested in Residential, Industrial 57%
FDI: USD 50.3 B DDI: IDR 675 T Estate and Office
5%
Electricity, Gas
Logistics and Water Foreign
6% Direct
& Industrial
Mining Investment (FDI)
9%

Transportation,
Landed Warehouse and
Telecommunication
Housing 11%
Manufacturing
26%

Others
31%
Jakarta
Hotels FDI: 10% Domestic
DDI: 14% Java Direct
Investment (DDI) Other Mining
FDI: 47% Services 13%
DDI: 49% 8%
Other
Alternatives Transportation, Warehouse Residential, Industrial
and Telecommunication Estate and Office
11% 11%

Source: NSWI Ministry of Investments

42 | © 2024 Jones Lang LaSalle IP, Inc. All rights reserved.

Jakarta & Bali Hotels
Market Performance

Pierre Marechal
Vice President Advisory & Asset Management
Hotels and Hospitality Group, Asia Pacific
International tourism accelerated in2023, reaching 88% of pre-
pandemic levels; Asia Pacific still lagging with 65%
Air travel in Asia Pacific is anticipated to fully recover in the first half of 2024.

International tourist arrivals recovery from 2019 by region

22%

10%
% Change from 2019

-5% -4% -6%

-10% -12%
-30% -20%
-31% -29% -34% -35%

-70% -58% -59%

-63%
-72% -68% -68% -72% -69%
-73% -73% -75%
-84%
-93%
-110%
Middle East Africa Europe Americas World Asia Pacific

2020 2021 2022 2023

Source: UN Tourism

45 | © 2024 Jones Lang LaSalle IP, Inc. All rights reserved.

Most destinations in Asia Pacific recovered or exceeded pre-
pandemic levels in RevPAR
Occupancy is expected to close the gap with 2019 as airlift improves in 2024, while ADR is set to stabilise.
YTD Dec. 22 BEIJING YTD Dec. 23 BEIJING
45% 87%

SEOUL SEOUL
SHANGHAI 100% SHANGHAI 139%
55% 88%

TOKYO TOKYO
BANGKOK 55% BANGKOK 112%
69% 108%

PHUKET PHUKET
73% HONG KONG 127% HONG KONG
65% 118%

MALDIVES METRO MANILA MALDIVES METRO MANILA

109% 73% 102% 96%

HO CHI MINH CITY HO CHI MINH CITY

Legend 59% 91%
MARKET
SINGAPORE SINGAPORE
YTD 2023 RevPAR recovery relative
82% 110%
to YTD 2019
SYDNEY SYDNEY
89% 114%
RevPAR recovery JAKARTA JAKARTA
> 100% 89% 112%
71% to 80%
MELBOURNE MELBOURNE
91 to 100% 61% to 70% 87% 101%
81 to 90% 51% to 60% BALI BALI
76% 137%
< 50%
Source: STR, JLL
46 | © 2024 Jones Lang LaSalle IP, Inc. All rights reserved. Note: Percentage shows YTD 2023 RevPAR (local currency) recovery relative to YTD 2019 – data as of YTD December 2023, marketwide
Lifestyle, technology/AI and personalisation as key focus in 2024
Importance of staying agile, flexible and equipped with the tools and technology to quickly adapt to the
market.

Food & Beverage Technology

Culinary Tourism | Uniquely Contact-less | AI-powered

Local Sustainable Vegan Facial recognition
& Plant-based Farm Mobile Key I Chatbots
to Table Robots

Hyper Personalisation Wellness & Sustainability

Data-driven | AI analytics Food is medicine | Fitness

Experiential Travel Programs | Spa | Green Spaces I
Unique & Authentic Mindfulness classes | Yoga |
Create Memories Sleep tracking

47 | © 2024 Jones Lang LaSalle IP, Inc. All rights reserved.

Jakarta Hotels “RevPAR of Jakarta luxury hotels exceeded pre-COVID levels with
strong domestic and corporate demand”
Existing and future hotel supply in Jakarta Monthly occupancy rate - Jakarta
Summary
65,000 80%
• More than 1,784,000 international tourists visited Jakarta as of YTD November
70%
2023, a significant rebound of 120% from YTD November 2022, reaching 80% of
Number of rooms

60,000 60% pre-pandemic levels on the back of improved air capacity in the region.
55,000 50%
40% • With strong corporate and MICE demand, international arrivals to Jakarta
recovered significantly in 2023. Top source markets in 2023 included Mainland
50,000 30%
China, Malaysia, Singapore and Japan.
20%
45,000 • Trading performance of Jakarta luxury hotels exceeded 2019 levels in 2023,
10%
0% boosted by a significant improvement in both occupancy and ADR, thanks to
40,000 strong domestic and rising international demand.

Feb

May
Jan

Mar

Jun

Aug
Sep
Apr

Jul

Nov
Dec
Oct
2017

2020
2016

2018
2019

2021
2022
2023
2024
2025
2026
• No new hotels opened in the last quarter of 2023 in Jakarta, maintaining the
2018 2019 2022 2023 existing hotel supply to 58,105 rooms at the end of 2023. By 2026, 2,361 rooms
Extisting Supply New Supply Future supply
Note: Performance pertains to the Luxury hotel segment are expected to open, driven by significant projects such as Pan Pacific Jakarta,
Source: JLL – data excludes Serviced Apartment projects Source: STR Movenpick Jakarta Pecenongan and 25hours Hotel The OddBird.

RevPAR recovery relative to 2019 – Jakarta Statistics

160% 2024

140% 2023
120%
100% RevPAR Existing Hotel Supply 58,105 rooms
RevPAR
Rise
80% Falling
Slowing Newly Completed Supply 4Q23 0 room
60%
40% Future Hotel Supply 2024-2026 2,361 rooms
20% RevPAR
RevPAR
Decline FY 2023 Occupancy Rate 61.5%
0% Rising
Slowing
Nov-20

Nov-21

Nov-22

Nov-23
Jan-20

Jan-21

Jan-22

Jan-23
Mar-20

Mar-21

Mar-22

Mar-23
Sep-20

Sep-21

Sep-22

Sep-23
May-20

May-21

May-22

May-23
Jul-20

Jul-21

Jul-22

Jul-23

FY 2023 ADR IDR 2,453,096

FY 2023 RevPAR IDR 1,508,236

Source: JLL, STR
Source: JLL, STR

48 | © 2024 Jones Lang LaSalle IP, Inc. All rights reserved.

Bali Hotels “With 7 million of international tourists expected in 2024, occupancy
is likely to increase and ADR to hold”
Existing and future hotel supply in Bali Monthly occupancy rate - Bali
90% Summary
50,000
80% • As of 26 December 2023, Bali recorded more than 5,232,000 foreign tourists,
Number of rooms

46,000 70% representing 83% of 2019 levels. On the back of this significant rebound, the
60% Provincial Tourism Service forecasts Bali to register 7 million of international
42,000 50% visitors in 2024.
40%
38,000 30% • RevPAR of luxury hotels in Bali jumped significantly by 71% YoY with increased
20% occupancy due to a rising number of international tourists, exceeding pre-
34,000 pandemic level by 23%.
10%
30,000 0% • In the year ahead, ADR in Bali is likely to moderate, yet remain at a higher level

Feb
Mar

May

Aug
Sep
Jan

Apr

Jun
Jul

Nov
Dec
Oct
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
than in 2019, in tandem with a rising occupancy rate as air connectivity fully
recovers in 2024.
Extisting Supply New Supply Future supply 2018 2019 2022 2023 • In 2023, Bali counted 45,795 rooms and the hotel supply is expected to increase
Note: Performance pertains to the Luxury hotel segment by 1,568 rooms by 2026.
Source: JLL – data excludes Serviced Apartment projects Source: STR

RevPAR recovery relative to 2019 – Bali Statistics

160% 2024

140% 2023
120%
RevPAR Existing Hotel Supply 45,795 rooms
100% RevPAR
Rise
80% Falling
Slowing Newly Completed Supply 4Q23 248 rooms
60%
40% Future Hotel Supply 2024-2026 1,568 rooms
20% RevPAR
RevPAR
Decline FY 2023 Occupancy Rate 57.5%
0% Rising
Slowing
Mar-20

Mar-21

Mar-22

Mar-23
May-20

May-21

May-22

May-23
Nov-22
Sep-20
Nov-20

Sep-21
Nov-21

Sep-22

Sep-23
Nov-23
Jan-20

Jul-22
Jul-20

Jan-21

Jul-21

Jan-22

Jan-23

Jul-23

FY 2023 ADR IDR 9,206,149

FY 2023 RevPAR IDR 5,293,848

Source: JLL, STR
Source: JLL, STR

49 | © 2024 Jones Lang LaSalle IP, Inc. All rights reserved.

Indonesia Hotel Investment
Investors confident on Indonesia’s hotel fundamentals, 2024 likely to reach USD265 million
Hotel investment volume in Indonesia and in comparable markets in Southeast Asia
Total hotel investment
600 volume – Indonesia

400
2023
USD million

USD 171
200
million
-
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Indonesia Thailand Vietnam

Source: JLL – data pertains to completed transactions USD5M and above, and excludes Casino Property, Pub/Licensed Leisure, Development
Site, Non-arm’s length deals.
2024
Summary
• In 2023, Indonesia recorded a total of USD 171 million of hotel transaction, led by Jakarta with the sale of the
USD 265
Mandarin Oriental Jakarta in October and the Pullman Jakarta Central Park as part of the first Southeast Asia hotel
portfolio, and Bali with the sale of Four Points by Sheraton Bali Kuta. million
• Indonesia recorded the highest hotel investment volume in 2023 when compared to other competing destinations in
the sub-region as Indonesia’s investors are led by HNWIs who are convinced by the sector’s solid fundamentals. We
Source: JLL
expect Indonesia to record a total hotel investment volume of USD 265 million for the full year 2024, fuelled by
stronger hotel capital market activity as opportunities arise, especially in the luxury segment.

50 | © 2024 Jones Lang LaSalle IP, Inc. All rights reserved.

Market outlook – 2024

International Inflationary
visitation in pressure on costs Incoming hotel
Indonesia set to rise should require supply should put
to 11 million with hotels to remain downwards pressure
improved airlift agile

RevPAR anticipated
Drive for more
Domestic travel to continue
corporate, groups
expected to increasing on the
and MICE as flight
continue supporting back of improved
capacity improves
tourism demand occupancy; rates
and prices normalise
likely to hold

51 | © 2024 Jones Lang LaSalle IP, Inc. All rights reserved.

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Thank you
James Taylor Yunus Karim Pierre Marechal
Head of Research Head of Research Vice President, Advisory & Asset Management
Work Dynamics, Asia Pacific Indonesia Hotels & Hospitality Group, Asia Pacific
james.taylor@jll.com yunus.karim@jll.com pierre.marechal@jll.com

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