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lobal coworking space providers have expanded in the country as demand keeps on growing.

A coworking space is basically a shared office space for rent.

It has one big room, which people from different companies share, equipped with desks, sofa and even a coffee stall.

People can rent space for about Rp 50,000 (US$4) per day.

Some coworking spaces even provide small rooms for private meetings and companies can rent it to set up their headquarters.

Property consultant Jones Lang LaSalle Indonesia head of research James Taylor said there were about 10,000 square-meters of coworking space in Jakarta in 2017. They are mostly located in grades B and C buildings in order to keep the price affordable.

Taylor added that currently all coworking space operators were 100 percent local despite being backed by foreign capital.

However, the conditions will drastically change as international operators from the United States and Singapore are looking to enter the Indonesian market.

“Coworking spaces are now 100 percent local, but I will say by midyear more than 50 percent will be international,” he said on Wednesday.

Taylor added that foreign operators were currently negotiating with building owners, especially those who own Grade A buildings.

“It is difficult to say how many spaces will be added in the middle of the year, but definitely more than 10,000 sq-m,” he said.

JLL Indonesia head of markets Angela Wibawa said one international coworking space operator that would come to Indonesia was Spaces, which was founded in the Netherlands and acquired by Belgium-based flexible office operator Regus.

Regus has operated in Indonesia since 2006, operating serviced offices and virtual offices with affordable prices.

“It [Spaces] is currently dealing with property owners and may begin operations around the third or fourth quarter this year,” Angela said.

The entrance of foreign players into the market did not stop locals from expanding.

Koléga, a homegrown coworking space start-up established in 2015, is looking to have 20 locations this year.

“We currently have nine locations spanning from high-rise buildings to enclaves in residential areas,” said its chief executive officer and co-founder Rafi R. Hiramsyah.

As new generations demanded a more open working culture, the coworking place business filled that gap, he added.

“What happened was a shift in the working culture. The new generation wants to be more open.

“They want to meet new people every day as networking is one of their needs,” said Rafi, adding that their client base ranged from millennial freelancers to established corporations.

JLL Indonesia country head Todd Lauchlan said a coworking space in a building was a good feature for building owners, especially in a climate of declining rent.

Coworking spaces can be rented to start-ups and when they get bigger, the building’s owner can persuade them to rent more space.

“It’s a way for owners to attract tenants in the early stage of the evolution,” Lauchlan said.

Based on JLL Indonesia data, due to oversupply and sluggish economic growth the Grade A building occupancy rate was 69 percent in 2017, the lowest compared to grades B and C buildings that have 86 and 91 percent occupancy rates. (sha/jlm)