Jakarta’s office market is showing early signs of recovery, with more occupiers expanding their space requirements and companies exploring new operations in Indonesia. According to Colliers, business expansion broadened the sources of office demand during the third quarter of 2026.
Oil and gas companies were among the more notable sources of enquiries, alongside businesses in technology, logistics, consumer-related sectors and supporting industries. However, Colliers cautioned that some oil and gas requirements remain at the tender or exploration stage and could take considerable time to translate into signed leases.
Demand for technology space is shifting as activity is increasingly driven by incumbent firms that are expanding or moving within Indonesia, rather than only by newcomers. Chinese tenants show a comparable pattern, with established players enlarging their footprints or transitioning from serviced to traditional office premises.
Colliers observes that confidence among tenants is rising, though still cautious. Lease durations of three to five years stay prevalent, with younger companies preferring shorter terms, while seasoned occupiers are more at ease with longer agreements.
Outside Jakarta’s central business district (CBD), occupancy eased to approximately 68% in the third quarter of 2026 following additional supply and a demand recovery that remains incomplete. Grade A occupancy improved to around 70%, while Grade B and Grade C buildings recorded softer performance, highlighting the growing flight to quality.
According to Colliers, results outside the CBD now hinge more on specific building traits than on location per se. In TB Simatupang, for instance, traffic congestion still poses a challenge, yet towers offering alternative access, strong connectivity, superior quality and established amenities can still maintain solid occupancy levels.
Additional leasing could arise as certain state-owned enterprise properties reconfigure their space, prompting some tenants to shift into commercial offices. Colliers emphasizes that such movements would reflect a redistribution of existing tenants rather than the creation of fresh demand.
In sum, Colliers characterizes the third quarter as an initial turn in Jakarta’s office demand cycle, with downsizing and rightsizing increasingly giving way to relocations, a preference for higher-quality space, and selective growth. The key question ahead is whether expansion will become broad enough to sustain net absorption, rather than merely moving tenants between buildings.
As companies continue to explore new operations in Indonesia, the office market is likely to see increased activity. With Indonesia being a key player in the region, its office market is expected to remain a vital component of the country’s economic growth.
