Viable alternative for cost-effective solutions<\/p>\n
Ari A. Rachmat
\nContributor
\nJakarta<\/p>\n
You wish to have an office of your own, but you do not have
\nsufficient funds? Well, not to worry. By renting a serviced
\noffice available in the city, your wish is easily realized.<\/p>\n
As the name implies, a serviced office is an office that comes
\ncomplete with the related \"content\", be it hardware and software,
\nsuch as furniture, telephone, fax, computer, and if you need
\nthem, a secretary, an office boy as well as a security guard.<\/p>\n
In some ways like renting a room, the rental period of
\nserviced offices (SO) is quite flexible as one can rent it just
\nfor a day or two or for years. Naturally, lower rates are applied
\nfor the longer rental periods.<\/p>\n
That's why a serviced office has become a viable option for
\ninnovative and cost-effective solutions for specific
\naccommodation needs.<\/p>\n
The local SOs have emerged in answer to the need of foreign
\ncorporations to open their representative offices in Indonesia as
\nthey saw profitable business opportunities due to the decreasing
\nvalue of the rupiah. Some of them established not too long ago --
\nin 1997, that is -- the number of companies providing serviced
\noffices has, in comparison to similar businesses in the region,
\nin fact enjoyed a relatively rapid growth. Some of them are
\npurely domestic companies, while others are owned by foreign
\ninvestors.<\/p>\n
Most of the Jakarta based SO companies -- at least six of them
\n-- have chosen the city's bustling central location popularly
\nreferred to as the \"Golden Triangle\" to provide their products.<\/p>\n
CEO Suites is one that is located at both the Jakarta Stock
\nExchange and the Indonesian Batik Cooperatives buildings. HQ
\nGlobal Workplaces has picked Wisma Ariobimo; The Executive Centre
\nIndonesia has selected the Danamon Aetna building; Plaza Business
\nCentre at Menara Kadin, while Jakarta Serviced Offices (JSO) have
\nopted for Wisma 46 to market its offices.<\/p>\n
Though fewer in number than those in Singapore, Hong Kong or
\nmajor cities of developed countries, the local SOs can match the
\nquality of services provided by their foreign counterparts.<\/p>\n
\"Just like a reputable star-rated hotel, we also assure our
\nclients of high quality service,\" said Indra Sakti, manager of
\nJakarta Serviced Offices.<\/p>\n
The presence of foreign owned and internationally affiliated
\nSOs in Indonesia certainly makes the business more competitive.
\nOne of them -- established here in 1997 -- is the Executive
\nCentre Indonesia (ECI) with its head office in Hong Kong and
\ncurrent networking affiliates in 12 countries.<\/p>\n
Bearing a global brand, obviously, ECI provides international
\nstandard quality, as stated by its manager, Rosaline Mayapada,
\n\"our entire system and manpower have to conform to the standards
\nset by our Hong Kong office\". However, their rates for fully
\nfurnished and fully serviced offices -- ranging between US$650
\nand US$1,950 per month -- are not much higher than those offered
\nby local players.<\/p>\n
Though the country's economic condition has not improved much,
\nSO businesses seems to be unaffected. Most of the offices have a
\nhigh occupancy rate. For example, JSO, said Indra, still had a
\nstable number of tenants as its 42 offices enjoy an 85 percent
\noccupancy rate most of the time.<\/p>\n
Likewise, Rosaline said, that her company's 36 offices have
\nbeen fully booked from day one. \"45 percent are occupied by the
\nsame tenants from the first days we opened business here, while
\nthe rest are also mostly our regular clients,\" said Rosaline.<\/p>\n
In addition to Indra and Rosaline's optimism about the future
\nof such business in Indonesia, the payment status of the tenants
\nis also another positive indicator. According to Indra, despite
\nthe country's weak economy, his clients pay their rent on time.
\n\"Sometimes I wonder ... everybody is lamenting about our economic
\nsituation, but we keep getting clients and the number is on the
\nrise plus they pay the rent regularly, which is in dollars, right
\non time,\" Indra commented half musingly.<\/p>\n
Though not mentioning any specific figures, both Indra and
\nRosaline agreed that their companies' sales trend was definitely
\nhealthy.<\/p>\n
Yadi Budhisetiawan, a business observer of Force Once
\nmarketing consultancy, attributed the success of serviced offices
\nto the practical attitude of a number of business people who
\nprefer this kind of hassle-free premises for their short or long-
\nterm operations.<\/p>\n
\"Apparently renting a serviced office, especially for new
\ncompanies, is highly efficient as it does not require a huge
\ninvestment,\" Yadi said, while also concurring that the business
\nhad a bright future.<\/p>\n
Yadi suggested, however, that SO companies should be more
\naggressive in their marketing and promotional activities. Rather
\nthan relying merely on the current word-of-mouth strategy, they
\nshould resort to a more integrated marketing program, which could
\ninclude such things as direct mailing, direct selling etc.
\nAnother vital aspect, Yadi added, was that further intensive
\ntraining should be provided for the support staff involved.<\/p>",
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