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Positive news over the economy and political stability marked a bright 2011 for Indonesia. Domestic and private consumption remained intact while investment inflows stayed robust, according to a recent report from Jones Lang LaSalle (JLL).
In the office segment, year-to-date completions hit 140,575 sq m in the Jakarta Central Business District (CBD), while it surged 237,626 sq m outside the CBD, with Q4 2011 completions accounting for 67,000 sq m.
Occupancy rates were 89.1 percent and 83.0 percent for the CBD and non-CBD areas respectively.
Over at the retail sector, 67,600 sq m of retail space due for lease at shopping malls were completed over Q4 2011. Year-to-date completions hit 93,300 sq m and 96,250 sq m for shopping malls and trade centres respectively.
Shopping malls recorded higher occupancy rates at 87.6 percent, while trade centre space posted 67.0 percent, leaving direct vacancies at 280,155 sq m and 489,408 sq m respectively.
“Indonesia also posted steady growth of 6.5 percent in GDP on the back of buoyant domestic spending and private investment,” the report noted.
However, economic growth will likely drop between 6.3 percent and 6.7 percent this year, with lower export performance as well as the slide in international commodity prices.
“Growth is expected to start accelerating in 2013 at around 6.4 to 6.8 percent, aligned with an improving global economy,” JLL maintained.
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