Paryono Ramadhan
One prominent player capitalizing on this trend is PT Intiland Development, which is spearheading the ambitious Aeropolis project. This expansive undertaking aims to create a fully integrated residential and commercial zone strategically located in the vicinity of Soekarno-Hatta International Airport (Soetta). The vision behind Aeropolis is to address the diverse needs of the community and workforce operating around the nation’s busiest airport, encompassing residential units, office spaces, retail outlets, and cargo facilities. This integrated approach acknowledges the unique demands of an airport-centric economy, where proximity to work and comprehensive amenities are paramount for professionals and businesses alike.
Didik Riyanto, the Project Director for Aeropolis, highlighted the launch of their newest product, the Onyx Residence Apartments. This vertical housing complex is designed to feature three towers, each comprising eight floors. Riyanto confirmed that two of these towers have already been completed, demonstrating Intiland’s commitment and progress. The construction of the third tower is strategically planned to commence once the units in the first two towers have achieved satisfactory market absorption, a common practice among developers to manage supply and demand effectively. The target demographic for Onyx Residence is primarily individuals and professionals working within the Soetta Airport complex and its surrounding industrial and logistical zones. Riyanto articulated the rationale behind this focus, stating, "The characteristic needs of this segment of the population undoubtedly require accommodation that is close to their workplaces." He further elaborated on the company’s internal analysis, which projected a high demand for housing around Soekarno-Hatta Airport in the coming years, thus justifying the significant investment in the Onyx Residence project.
Aeropolis, as envisioned by Intiland, is a large-scale, long-term development initiative. Since its initial launch, the project has demonstrated remarkable market success, with sales reaching an impressive 4,000 units by the end of March 2014. This robust sales figure encompasses a diverse portfolio of properties, including residential units, office spaces, warehousing facilities, hotel accommodations, and retail outlets. This success underscores the market’s confidence in the integrated "airport city" concept and Intiland’s execution. Given this strong performance, Riyanto expressed confidence that Onyx Residence would further solidify Aeropolis’s reputation and position as a premier integrated development in the Soekarno-Hatta Airport vicinity, offering a holistic environment for living, working, and leisure.
The success of such integrated developments is not isolated to Intiland. Other prominent developers are equally active in the Bodetabek region, keen to capture a share of the burgeoning market. A notable collaboration involves the Ascendas Group, a leading Singapore-based provider of business space solutions, industrial parks, and urban developments, which has partnered with PT Metropolitan Karyadeka Development (MKD), a subsidiary of the reputable Indonesian developer Metropolitan Land Group. Together, they are embarking on a substantial 9.7-hectare mixed-use project situated in Tangerang, Banten, specifically within the expansive Metland Cyber City development.
Manohar Khiatani, CEO and President of the Ascendas Group, elucidated the strategic importance of this joint venture. He explained that the project, once completed, would comprise a synergistic blend of office spaces, apartments, retail establishments, and other essential supporting facilities. Khiatani emphasized that this development serves as a direct response to the escalating business expansion observed in Jakarta’s peripheral areas, where companies increasingly require comprehensive mixed-use zones to adequately support their operational and growth objectives. The presence of an international developer like Ascendas highlights the global confidence in Indonesia’s property market and the strategic appeal of the Bodetabek region.
Echoing this sentiment, Nanda Widya, President Director of PT MKD, conveyed his company’s enthusiasm for the project. He underscored the growing imperative for integrating residential areas with workplaces and other amenities, asserting that such integrated environments are fast becoming a fundamental necessity for businesses and their employees in the modern urban landscape. Widya encapsulated the core philosophy of the development with the compelling mantra: "The spirit of the area is to be a place to work, live, and play." This "work, live, play" paradigm is a globally recognized urban planning trend that seeks to minimize commuting times, foster community engagement, and enhance overall quality of life by co-locating essential functions within a single, cohesive environment.
The first phase of the Ascendas-MKD mixed-use project is slated to commence in 2016, focusing on an initial 1.3-hectare parcel out of the total 9.7 hectares. The subsequent phases of development will be strategically rolled out based on the market absorption rate of the initial offerings, a prudent approach to risk management and market responsiveness. This phase-wise development strategy allows developers to adapt to evolving market conditions and ensure optimal resource allocation. The planned components for this initial phase include apartments, housing units, and office spaces, complemented by a range of supporting facilities designed to create a vibrant and self-sustaining community.
Nanda Widya further elaborated on the highly strategic location of Metland Cyber City. Its accessibility is a significant advantage, particularly from the Jakarta-Merak Toll Road, facilitated by a newly opened direct exit at Kilometer 11. Additionally, several major arterial roads traverse the area, ensuring seamless connectivity to various parts of Jakarta and other key regions. This superior connectivity positions Metland Cyber City as an attractive proposition for businesses and residents alike. Moreover, Widya highlighted the high capital gain potential in Tangerang, attributing it to the city’s status as a primary property choice for professionals commuting from Jakarta. Tangerang has, over the years, evolved into a significant economic and residential hub, attracting a substantial portion of Jakarta’s workforce seeking more affordable housing and improved living conditions without sacrificing connectivity.
Shifting Dynamics: Bogor Emerges as a Preferred Investment Destination
While Tangerang continues to attract significant developer interest and investment, a noteworthy shift in property investment preferences has been observed among the general public. A mid-2015 survey revealed that Bogor, West Java, had emerged as the top choice for property investment, displacing Tangerang, which had held the favored position for several preceding semesters. Mario Gaw, a General Manager (though the specific company was not stated, it is inferred to be a leading property research or portal entity), presented these findings, indicating that Bogor secured the top spot with a commanding 37 percent of investor preference.
Following Bogor, Tangerang and Bekasi maintained their positions as strong contenders in the property investment landscape. Within the DKI Jakarta region itself, South Jakarta continued to be the most favored area for buyers, reflecting its status as a premium residential and commercial district. Gaw clarified that the survey was conducted online over a period of 1.5 months in January 2015. He also noted that his organization routinely conducts such surveys twice annually, providing invaluable additional reference points for stakeholders across the property industry, from developers and investors to prospective buyers.
The rise of Bogor as a preferred investment destination can be attributed to several factors. Its reputation for a cooler climate, lush greenery, and scenic landscapes makes it an attractive retreat from Jakarta’s urban intensity. Infrastructure improvements, such as the Jagorawi Toll Road and planned extensions of public transport like the Light Rail Transit (LRT), further enhance its connectivity. Additionally, historically lower land prices compared to Tangerang might have presented more lucrative capital appreciation opportunities for early investors. Bogor’s growing appeal also reflects a broader trend of buyers seeking a better quality of life, often willing to trade a slightly longer commute for more spacious living environments and natural surroundings.
The survey also delved into the financing preferences of respondents, revealing crucial insights for the property market. A significant 75 percent of respondents still placed their trust in bank loans as their primary source of credit for property acquisition. This indicates the enduring role of traditional financial institutions in facilitating property ownership. However, a substantial 53 percent of respondents also acknowledged that credit programs offered directly by developers represented an innovative breakthrough and were considered a significant factor in their decision-making process for acquiring various types of properties, including houses, apartments, and shophouses (ruko). This highlights the growing influence of developer-backed financing schemes, which often provide more flexible terms, lower initial down payments, or unique payment structures designed to attract specific buyer segments, particularly in a market where interest rates or traditional lending criteria might be perceived as stringent.
Broader Implications and Future Outlook
The continued robust property development in Bodetabek underscores several key macroeconomic trends and future implications for Indonesia. The sustained urbanization rate, coupled with Jakarta’s ever-expanding population, necessitates the outward growth into these satellite cities. The government’s ambitious infrastructure development agenda, encompassing new toll roads, extensions of existing public transport networks (such as the KRL Commuter Line and future LRT/MRT lines), and improvements in regional connectivity, directly fuels property demand and increases the accessibility and value of land in Bodetabek. These infrastructure projects not only reduce commuting times but also facilitate the movement of goods and services, making these areas more attractive for businesses and logistics hubs.
The "work, live, play" concept, exemplified by projects like Metland Cyber City, is not merely a marketing slogan but a fundamental shift in urban planning. It responds to the desire for greater convenience, reduced stress from commuting, and a more balanced lifestyle. As businesses decentralize from Jakarta’s congested core, they seek integrated environments that can provide both office space and convenient housing for their employees, fostering productivity and employee satisfaction. This trend suggests a continued move towards self-contained townships that offer a full spectrum of amenities, from educational institutions and healthcare facilities to entertainment and recreational options.
Challenges remain, however. Traffic congestion, while mitigated by new infrastructure, remains a concern as populations grow. Land acquisition for large-scale projects can be complex and time-consuming. Environmental sustainability and the provision of adequate green spaces are also critical considerations as these areas develop rapidly. Furthermore, market fluctuations, interest rate changes, and global economic shifts can influence buyer confidence and investment appetite.
Despite these challenges, the long-term outlook for Bodetabek remains positive. The strong demand for integrated developments, the strategic push for infrastructure improvements, and the evolving preferences of property buyers and investors suggest that these regions will continue to be a focal point for property development in Indonesia. The shift in investment preference towards areas like Bogor signifies a maturing market, where buyers are increasingly sophisticated, weighing factors beyond mere proximity to Jakarta, including lifestyle, environmental quality, and long-term capital appreciation potential. The combined efforts of both local and international developers, backed by a supportive policy environment and a growing economy, are poised to transform Bodetabek into a mosaic of vibrant, integrated urban centers.
