Will Jakarta retail rents increase this year?

Average rents have remained stable in 2024 as landlords prioritise occupancy levels.

In a recent report, Colliers noted that in Jakarta, the average retail rent remained steady at IDR 564,400 as of Q4 2024. The decision to maintain current rental rates may indicate landlords prefer to sustain occupancy levels while securing some leasing deals before the year-end.

Landlords will likely reassess market conditions and the strength of tenant demand as a matter of caution before deciding on rental adjustments in 2025.

Here’s more from Colliers:

In Greater Jakarta, most landlords have opted to maintain current rates. Nevertheless, the average rent was registered at IDR 393,822 in Q4 2024, increased slightly compared to Q3 2024. This modest growth was attributed to the opening of a new middle-upper grade shopping mall in Bekasi. The average rent in Greater Jakarta is anticipated to increase by about 2%, driven by anticipated demand improvement and the completion of new development in 2025.

Service charges in Jakarta and Greater Jakarta are IDR 154,035 and IDR 124,881, respectively. Both areas are expected to see an increase in service charges in 2025, particularly due to rising minimum wage rates, which will likely lead to higher operational costs for landlords. VAT increases to 12% as planned in 2025, may exacerbate pressure on tenants and mall operators, particularly in regions already struggling with low occupancy.