Jakarta's 'Ghost Offices' Phenomenon: How Are Things Now?

Jakarta, CNBC Indonesia - Office buildings in Jakarta experienced a gloomy period over the last decade. The emergence of numerous new office spaces caused occupancy rates to continuously decline, leading to the term “ghost offices”, as many floors remained empty without tenants.

However, the situation began to change in 2026. Head of Research at JLL Indonesia, James Taylor, stated that the office market in Jakarta’s central business district (CBD) is now starting to trend upwards, particularly supported by the limited new supply and increasing leasing activity.

“Over the past 10 years, Jakarta has added around one million square metres of Grade A office space. Occupancy rates, which were around 95% in 2015, even dropped below 65%,” said James during the Jakarta Property Market Update for the First Quarter of 2026 media briefing at the Indonesia Stock Exchange (BEI) office on Tuesday (12/5/2026).

Nevertheless, recovery became evident in the first quarter of 2026. One supporting factor is the minimal new supply, with estimates indicating no additions of new buildings until 2028.

With supply constrained, the number of tenants began to increase. JLL recorded demand for office space in the CBD at around 21,000 square metres in the first quarter of this year, a twofold jump compared to the same period last year.

“Demand is primarily focused on Grade A buildings, but interestingly, recovery is also starting to appear in Grade B and Grade C buildings,” said James.

Recovery is also beginning to be felt outside the CBD, albeit more slowly. The TB Simatupang area is one of the non-CBD regions starting to attract tenants again. Office absorption there reached around 15,000 square metres in the first quarter of 2026, doubling compared to the previous quarter.

“In the past 10 years, when CBD rental prices were low and plenty of vacant space was available, many tenants sought value in areas like this. But with the current CBD recovery, tenants are likely to once again view TB Simatupang as an alternative for better value,” he said.