Indonesia’s Office Trend: Companies Prefer Buildings over Shophouses

As businesses recover and expand, choosing the right workspace becomes crucial. In Indonesia, while some companies consider shophouses or residential conversions which offer more flexible and affordable, most still prefer purpose-built office buildings for their professional environment, convenience, and long-term value.

More than just physical space, office buildings offer the infrastructure, services, and image that support sustainable business growth—making office leasing a continuing opportunity in Indonesia’s evolving property market.

1. Infrastructure That Supports Professional Growth

Office buildings are designed for efficiency, with proper layouts, soundproofing, and adequate lighting that meet corporate standards. Unlike shophouses, which require renovations to suit office needs, purpose-built offices allow companies to operate immediately and scale more easily as they grow.

2. Managed Facilities That Simplify Operations

Building management teams provide essential services such as security, cleaning, and maintenance. This allows tenants to focus on core business activities instead of handling operational logistics—a convenience that standalone shophouses rarely offer.

3. Strategic Locations That Strengthen Access and Image

Most office buildings are situated in central or secondary business districts, ensuring easy access for employees, clients, and partners. The location alone enhances visibility and credibility, especially for firms that rely on professional networking and frequent meetings. Shophouses, often in residential zones, can limit that accessibility.

4. Efficient Space Utilization That Maximizes Value

Purpose-built offices make better use of space. On average, 80–90% of their total area is productive workspace, compared with 60–70% in shophouses. Fewer interior walls and better layouts mean companies can accommodate more staff or functions without expanding their lease size.

5. Facilities That Reflect Corporate Standards

Amenities like reception areas, meeting rooms, cafeterias, and secure parking reinforce professionalism. This creates a better impression for both employees and visiting clients. By contrast, shophouses often lack adequate parking or formal reception areas—making them less ideal for growing businesses.

6. Flexibility That Adapts to Business Change

Office buildings often offer flexible lease options and shared facilities suitable for startups or expanding companies. Some even include co-working zones and hybrid layouts, catering to today’s diverse work models. This adaptability helps firms remain agile without losing their professional edge.

Market Trends Reinforce the Sector’s Strength

According to SewaKantorCBD’s Jakarta CBD Office Market Overview (2H 2023), office space demand in Jakarta’s central business district rose 2.36% year-on-year, supported by lower post-pandemic rental prices. In addition, data from Jones Lang LaSalle (JLL) show that Indonesia’s office leasing market is projected to improve in 2026, with occupancy rates expected to rise by 2–2.2% amid limited new supply.

Currently, Grade-A offices in Jakarta’s CBD and non-CBD areas maintain around 65% occupancy, with rents averaging USD $12.18 per m² in the CBD and USD $6.12 per m² in non-CBD zones.
These figures highlight that the office segment remains stable and promising, especially as businesses continue to seek professional, well-managed spaces.

With reliable infrastructure, strategic locations, and a recovering market, leasing office buildings remains a smart long-term choice for companies operating in Indonesia. Beyond functionality, these spaces offer the flexibility and image that help businesses grow sustainably—signaling that Indonesia’s office sector continues to hold strong potential.

 

Source: Bisnis.com

Photo Credit: SCBD

Latest Article
Indonesia’s Office Trend: Companies Prefer Buildings over Shophouses
As businesses recover and expand, choosing the right workspace becomes crucial. In Indonesia, while some...
Don’t Miss These 8 Jakarta Events This November 2025
As the year winds down,, Jakarta is gearing up for a lively month filled with music, art, and culture....
QRIS Tap, Indonesia’s New Contactless Payment for Public Transport
Bank Indonesia (BI) has officially introduced the Quick Response Code Indonesian Standard (QRIS) Tap...
Indonesia Delays Tax Hikes Until Economy Grows Six Percent
Indonesia will not raise tax rates until its economy grows by at least 6 percent, Finance Minister Purbaya...
FIKSI 2025 Encourages Youth Entrepreneurship
The Ministry of Primary and Secondary Education is fostering innovative and creative entrepreneurial...

Andrzej Barski

Director of Seven Stones Indonesia

Andrzej is Co-owner/ Founder and Director of Seven Stones Indonesia. He was born in the UK to Polish parents and has been living in Indonesia for more than 33-years. He is a skilled writer, trainer and marketer with a deep understanding of Indonesia and its many cultures after spending many years travelling across the archipelago from North Sumatra to Irian Jaya.

His experience covers Marketing, Branding, Advertising, Publishing, Real Estate and Training for 5-Star Hotels and Resorts in Bali and Jakarta, which has given him a passion for the customer experience. He’s a published author and a regular contributor to local and regional publications. His interests include conservation, eco-conscious initiatives, spirituality and motorcycles. Andrzej speaks English and Indonesian.

Terje H. Nilsen

Director of Seven Stones Indonesia

Terje is from Norway and has been living in Indonesia for over 20-years. He first came to Indonesia as a child and after earning his degree in Business Administration from the University of Agder in Norway, he moved to Indonesia in 1993, where he has worked in leading positions in education and the fitness/ wellness industries all over Indonesia including Jakarta, Banjarmasin, Medan and Bali.

He was Co-owner and CEO of the Paradise Property Group for 10-years and led the company to great success. He is now Co-owner/ Founder and Director of Seven Stones Indonesia offering market entry services for foreign investors, legal advice, sourcing of investments and in particular real estate investments. He has a soft spot for eco-friendly and socially sustainable projects and investments, while his personal business strengths are in property law, tourism trends, macroeconomics, Indonesian government and regulations. His personal interests are in sport, adventure, history and spiritual experiences.

Terje’s leadership, drive and knowledge are recognised across many industries and his unrivalled network of high level contacts in government and business spans the globe. He believes you do good and do well but always in that order. Terje speaks English, Indonesian and Norwegian.

Contact Our Consultants

[wpforms id=”43785″]

Ridwan Jasin Zachrie

CFO of Seven Stones Indonesia, Jakarta

Ridwan is one of Indonesia’s top executives with a long and illustrious career in the financial world. He holds several professional certifications including being a Certified Business Valuer (CBV) issued by the Australian Academy of Finance and Management; Broker-Dealer Representative (WPPE); and The Directorship Certification for Directors and Commissioners, issued by the Indonesian Institute of Commissioners and Directors.

His experience includes being the Managing Director at one of the top investment banking groups in the region, the Recapital Group, the CFO at State-owned enterprises in fishery industry and the CEO at Tanri Abeng & Son Holding. He’s also been an Independent Commissioner in several Financial Service companies and on the Audit and Risk Committee at Bank BTPN Tbk, Berau Coal Energy Tbk, Aetra Air Jakarta as well as working for Citibank, Bank Mandiri and HSBC. His last position was as CFO at PT Citra Putra Mandiri – OSO Group.

Ridwan has won a number of prestigious awards including the Best CFO Awards 2019 (Institute of Certified Management Accountant Australia-Indonesia); Asia Pacific Young Business Leader awarded by Asia 21 Network New York USA (Tokyo 2008); UK Alumni Business Awards 2008 awarded by the British Council; and The Most Inspiring Human Resources Practitioners’ version of Human Capital Magazine 2010.

He’s a member of the Board of Trustees of the Alumni Association of the Faculty of Law, Trisakti University, Co-Founder of the Paramadina Public Policy Institute and actively writes books, publications and articles in the mass media. He co-authored “Korupsi Mengorupsi Indonesia” in 2009, which helps those with an interest in understanding governance in Indonesia and the critical issue of corruption. Ridwan speaks Indonesian and English.

Per Fredrik Ecker

Managing Director of Seven Stones Indonesia, Jakarta

Per is the Managing Director of the Seven Stones Indonesia (SSI) Jakarta office and has more than 25-years’ experience in Indonesia, China, and Western Europe. He previously worked in senior management positions with Q-Free ASA, Siemens AG, and other companies in the telecom sector. Over the last six years, he has been the Chairman of the Indonesia-Norway Business Council (INBC) and recently become elected to be on the board of EuroCham Indonesia.

His most recent experience is within Intelligent Transport Solutions (ITS), Telecom, and other sectors within the Indonesian market. He is today through his position in SSI and by representing Norway Connect, promoting Nordic and European companies that would like to explore business opportunities in the Indonesian market. He’s also playing an active role to help create the Nordic House concept in Jakarta that will provide an excellent platform for Nordic companies entering Indonesia, where they’ll find a community that can offer support with trusted information and affordable services to enter this market.