James Taylor is Head of Research for JLL in Indonesia. After building an Asian based career across the Greater China region, James saw Jakarta as a new experience and a new challenge.

As Head of Research, he and his team conduct quarterly research on the office, retail and residential sectors in Jakarta while also covering the property markets in Bali, Surabaya and other cities throughout Indonesia.

WILLIAMS MEDIA spoke with James Taylor who offered some insight into his experience within the real estate industry and also Jakarta's property market. 

What are the defining moments in Jakarta's real estate history?

The fact that Jakarta is still an emerging market gives the false impression that real estate development on a commercial scale is relatively new in the city. This couldn’t be further from the truth. The first shopping malls and office buildings appeared as early as the 1960s and JLL has been active in the market for the past 37 years. The Hotel Indonesia development and roundabout remain iconic landmarks while the nearby Sarinah Mall still attracts visitors after more than 50 years.

1997 and the Asia Financial Crisis saw social and economic turmoil, the fall of the Suharto regime and the rise of democracy. The late 90s and early 2000s was a period of strong growth in the office, retail and residential markets and while the Global Financial Crisis tempered growth, Indonesia was better insulated from its negative impact than many of its regional peers.

Sluggish growth in the office market in 2015 and 2016 was followed by something of a recovery in 2017 which was boosted by the emerging tech sector. New sectors have also emerged in recent years – the modern logistics warehouse market continues to grow rapidly while co-working space is expected to be a major driver of office demand in 2018.

Where are the emerging markets that people should be looking to in Jakarta that you think will have upside?

I already mentioned logistics and co-working but the tech sector more broadly is a significant growth area. There are also other asset classes which are growing in other markets but new to Jakarta. Data centres, student accommodation, co-living and self-storage all have the potential to grow fairly rapidly.

Why did you first come to Jakarta and get into the real estate industry?

I had already spent a good amount of time in Asia (Taiwan, Beijing and Hong Kong). All of the previous places I had lived were in Greater China and Jakarta represented a new experience and a new challenge. The opportunities here are immense and there is a sense that, under Jokowi, long-standing challenges relating to infrastructure and bureaucracy are finally being addressed. It’s an exciting time to be in real estate in Indonesia.

Why real estate? Real estate is the most interesting asset class for me because it’s the most tangible.

What advice would you have for those looking to come into markets like Jakarta and set up a real estate business or begin working in real estate?

Some people are not cut out for emerging markets and struggle outside of places like Hong Kong and Singapore. I love it but it’s not for everyone. Come with an open mind and a lot of patience.

How do you best help a buyer or investor?

While foreign companies have essentially the same rights on land and development as local entities, Indonesia can be a daunting destination for foreign developers and investors; particularly those looking to enter the market for the first time. We assist with essentially anything related to the real estate side of market entry. We can help to source opportunities and/or make introductions to local partners, advise on the state of the market and provide recommendations. We basically hold the investors’ hand throughout the whole process.

What would you like to see changed in the local industry in 5 years?

More transparency and more publically available data sources on things like land and residential sales. This would both attract more foreign interest and make my job easier!

What are the opportunities in the marketplace at the moment?

The upcoming MRT and LRT could revolutionize how people get around in Jakarta and residential developments with direct or convenient access to these transport links have the potential to outperform the market. The size and youthfulness of the population and the huge economy are such that residential is a decent bet for the medium and long-term despite a patchy market at present. Logistics is also a growth sector.

Where do you see Jakarta in 5 years?

I have high hopes for Jakarta. Infrastructure is improving and the MRT and LRT developments have the potential to be real game changers in opening up the city. They should also help improve Jakarta’s infamous traffic although I feel the government might need to do more in terms of restricting the use of private cars as well as offering more viable alternatives. Easing traffic should be high up the list of priorities in term of making Jakarta a more attractive place to live. More green/public spaces would be nice too, but I’m not holding my breath.

Improving infrastructure, a steadily growing economy and a massive, young population are likely to help drive growth. Although it sometimes feels like two steps forward and one step back, we’re generally moving in the right direction.

For more information about Jakarta's property market, email James Taylor of JLL Indonesia via the contact details listed below. 

This article was previously published on Gapura Jakarta.

Similar to this:

Colliers International strengthens Japan office with appointment of Masahiro Fuse and Dick Olango

Get to know Takashi Nakazawa of Japan Valuers

Five wins for Slade Property Services at the Asia Pacific Property Awards 2018-2019