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.