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Jakarta office buildings go ‘green’ to stand out amid oversupply

Ni Made Tasyarani (The Jakarta Post)
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Thu, March 20, 2025 Published on Mar. 13, 2025 Published on 2025-03-13T18:10:56+07:00

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Jakarta office buildings go ‘green’ to stand out amid oversupply High-rise buildings are seen in the Sudirman Central Business District in South Jakarta on March 14, 2021. (AFP/Adek Berry)

O

ffices in Jakarta are shifting toward green practices as developers seek to leverage growing market demand for environmental compliance amid an excess supply of office space.

Property consultancy Colliers noted in a report published on March 3 that “green-certified buildings are relatively sparse” in Greater Jakarta. Forty-six office buildings in the capital region have received the accolade, which still beats the paltry 10 certificates issued for industrial facilities and even fewer for residential and retail properties, according to the report.

The certificates, which are subject to an environmental performance assessment and commitment to eco-friendly practices, include Leadership in Energy and Environmental Design (LEED), Green Mark and Greenship and the Jakarta office buildings that have received them include the World Trade Center, Capital Place and Pacific Century Place.

A report released on Feb. 13 by property agency Knight Frank shows that green-certified offices saw strong growth in occupancy rates to around 73.4 percent in the second half of last year, with average price growth at 4 percent year-on-year (yoy).

“Price competition and tenant market conditions make green office an alternative for occupiers interested in improving [their] office quality,” the report states.

Knight Frank previously reported that green offices accounted for 14.1 percent of overall office stock in Jakarta’s central business district (CBD), equivalent to 1.02 million square meters of total supply.

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