Apartments: A new concept in Jakarta

Apartments: A new concept in Jakarta

By I. Christianto

Dubbed a concrete jungle, Jakarta has numerous sky scrappers,
and many luxury high-rise apartments. Apartment living is not
entertained by most Indonesians, but as time goes by, more locals
seem to feel comfortable with the new lifestyle.

JAKARTA (JP): Robby looked exhausted when he arrived at his
office in Sunter. The young executive said that he had walked
down nine flights of stairs in his apartment building because the
elevators had failed.

It was his first bad experience since he moved into the
apartment in Cempaka Putih two years ago.

"It was due to the lightning the other night. The generator
was damaged and couldn't supply any power. I can't imagine how
tenants living on higher floors managed. Fortunately the
electricity returned to normal in the afternoon."

However, he still thinks apartment living is easy and
practical. "I don't have to think about small things like a
leaking roof, parking or waste disposal, at least for the time
being. Security is also guaranteed and the developer will fix any
problem or complaint," he says, adding that for this comfort, he
has to pay Rp 400,000 service charge each month.

Robby, who lives with his wife and daughter, enjoys living in
the apartment as it is conveniently located within a business
complex which includes a supermarket and other facilities. It is
also close to the center of the city.

In fact, location and access are what motivates many people to
live in an apartment. Jakarta is too crowded with its 15 million
day-time population. At night, the number reduces to about 9
million as the rest leave for the city's suburbs of Tangerang,
Bekasi and Bogor. Every day they have to commute to their office,
spending up to two hours or more on the road.

Apartments are a relatively a new concept here. It was not
until the late 1980s that the city started to see the development
of high-rise apartment buildings. In the beginning, the
developers targeted expats, then later, they began to eye the
locals.

It is not easy, however, to persuade Indonesians to live in an
apartment. Land is something that is important for the people and
many can not imagine living where they can not touch the soil.
What's more, the rich are used to spacious houses with a lot of
rooms, including those for the house maids and baby sitters.
There are cases in which tenants or developers change the lay out
of the apartment unit, such as creating additional room for the a
family member or a servant, or a space to hang the cloth racks,
which will apparently affect the whole building structure.

Johan Silas, professor of the 10 November Technology Institute
of Surabaya, believes that as time goes on many Indonesians will
become fond of living in apartments.

"Culture is not static, it changes depending on pressures and
opportunity. The influence of agriculture is gradually giving way
to the industrial way of thinking," he said.

He agrees that some Indonesians buy apartment units because
they are snobbish. But he added that quite a number make a sound
judgment to opt for apartment living. "It is not necessarily
related to modern living, but can be part of a new lifestyle and
high mobility of professionals," he said.

Associate director for research and consultancy of property
consultant PT Colliers Jardine, Monica Purwowigati K., said that
more Indonesians are deciding to live in apartments.

"It's about practicality, security and good location. Most of
them are young couples without children or only one child. Most
of them prefer to live near their parents, at least in the same
districts," she said.

There are three categories of apartments: serviced, leased and
purchased. "In Jakarta, there are currently (middle- and upper-
level) 66 apartment buildings for purchasing, 48 for leasing and
19 serviced or leased apartment buildings, 6 out of the latter
are part of hotels."

Colliers's residential division manager, Monica Andriani, said
that many locals bought apartments when the economy was booming
some years ago, before the economic crisis. "Most of the local
buyers are of Chinese origins. Perhaps their economy is somehow
better," she says.

Middle-level apartment units can be purchased for Rp 200
million (US$27,000), but the price of a luxury one can reach up
to Rp 5 billion (US$67,000).

Dani Soenarso of Jones Lang LaSalle/Procon Indah markets the
Mitra Oasis apartments in Senen area. She says that some 50
percent of the buyers of these apartment units are locals.

"Some of them are corporate buyers, but most are individuals,"
she said, adding that only 30 units are still unsold out of 316
units of the two-tower apartments.

Oswald Pichler of the world-class hotel management company
Accor Asia-Pacific agreed that there's been a strong percentage
in local demand.

Accor now manages dozens of hotels across Indonesia and five
serviced apartments in Jakarta and Surabaya.

"The properties operated by Accor are serviced apartments,
which are for lease and not for ownership, but many Indonesians
stay there," says Pichler.

He said that sometimes, when there are wedding parties, many
family members stay at the apartments for an extended period.
"Some people prefer to host parties in an apartment, rather than
a hotel, so they can cook for themselves. Apartment units have
kitchens, which can't be found at hotels," he said.

Apartments, indeed, offer many advantages one can't get if he
or she lives in a house. Its strategic location is just one. The
others include, 24-hour security, comforts, practicality and
privacy.

Yani, 27, decided several months ago to live in a middle-level
apartment in Kuningan area with her boyfriend because she wants
more privacy.

"Yes, it's about privacy. We are only required to pay the
monthly charge, no more questions asked," she said.

The couple pay Rp 3 million, including the Rp 300,000 service
fee, a month.

She finds tenants in apartments are more individualistic with
their own business. "Nobody asks personal or improper questions
or gossips."

However, she said that she did not have any plan to buy an
apartment. It is too expensive for her, while the privacy she
wants is not offered in a low-cost apartment.

Ria, a manager in a leading private firm who lives in an
apartment in Semanggi area, prefers to live there not only
because of the privacy, but also security. "The only thing I am
afraid of is an earthquake. It's the main threat in living in
high-rise building."

She bought the two-bed room unit for Rp 300 million. The
service charge is Rp 5,500/square meter/month.

Isn't there another thing that can make her worried, like when
she has to move to another building when her apartment needs to
be renovated or even pulled down due to old age?

"Oh, I've never thought about that," she said.

Regulations

There are many things to be considered in living in
apartments, such as regulations.

Sudjoko of the city administration's Housing Affairs division
said that people must be very careful in purchasing an apartment
unit.

"There's a case where a buyer thinks that he's been cheated
because he must buy a ticket to use the swimming pool at his
apartment," he said.

"Many developers are tricky, they often delay organizing the
so-called Tenant Association which is required from any apartment
developer as required by the Apartment Law No 16/1985, Provincial
Regulation No 1/1991 and Government Decree No 4/1988."

According to the regulations, the developers are not allowed
to charge service fees if the Association has not been set up, he
said.

He acknowledges that the law and regulations need improvement
as they are vague in some terms, creating holes for some
developers.