You may have heard from former residents of Jakarta that you should live in a particular area such as Pondok Indah, Kebayoran Baru or Kuningan. Be forewarned that what one person may love in a neighborhood may be what someone else can't stand. Travel through the neighborhoods on your own and be your own judge!
Menteng
Starting with Central Jakarta, Menteng is one of the oldest and most prestigious neighborhoods. Set just east of the main thoroughfare of Jl. Thamrin/Sudirman, Menteng is known for its stately colonial-era mansions, proximity to the business district, as well as being the site of many embassies, ambassador. s residences, as well as the residence of the President of Indonesia and other senior Indonesian officials. Many houses in this area are considered historical landmarks.
Rents are high due to close proximity to the business district. Some pavilions (apartment over a garage/small guest house) are available for reasonable rates. The infrastructure is old, small narrow streets and crowded thoroughfares abound. Yet the small quiet streets off those crowded thoroughfares and the old-world atmosphere of the old buildings is quite attractive. Good shopping nearby at Plaza Indonesia, Sarinah, Menteng Plaza, Jalan Sabang and the various small neighborhood shops.
The Golden Triangle
While it would never have been considered a neighborhood 5 years ago, apartment developments on or nearby the 3 major thoroughfares that form the Golden Triangle (Jl. Sudirman, Jl. Gatot Subroto and Jl. Rasuna Said) have turned this area into a convenient location for expatriates to live.
For those who like to be at the heart of the action, and don't need to be located in South Jakarta to be near schools for their children, the apartment-living lifestyle of the Golden Triangle can be very attractive. Within a few kilometers of most major office buildings, commute time is minimal. If you yearn for green, wide open spaces you will probably not be happy for long in this area, but if the drone of traffic is music to your ears, proximity to work is valued and you don't want the hassles of caring for a large home, consider leasing an apartment in the Golden Triangle.
Kuningan
Just west and east of Jl. Rasuna Said, there are substantial planned housing developments favored by expats. Patra Kuningan, built in the 70s, has been a favorite of oil and gas folks for over 20 years. The neighborhood is well-planned, with tree-lined streets and lots of space for parking. Many of the homes are owned by oil and gas companies and occupied by their current expatriate staff. Kuningan Timur, on the west side of Jl. Rasuna Said, and most of the Mega Kuningan development area behind this are still undeveloped. This area was planned as a diplomatic enclave and does have some stately residences for diplomats.
Nearby shopping in Menteng Plaza and Plaza Indonesia. Closest international school is Pattimura elementary. The middle school, junior high and senior high school at JIS are 45 minutes to 1 1/2 hour away.
Kebayoran Baru
Moving into South Jakarta, Kebayoran Baru is located just east of the southernmost end of Jl. Sudirman. Kebayoran Baru is a well planned neighborhood with large homes, wide tree-lined streets and close proximity to the Pattimura Elementary campus of the Jakarta International School. Close proximity to offices on the southern end of Jl. Sudirman. Lots of nearby shopping in Blok M Plaza, Pasaraya, Blok M and Plaza Senayan. Major streets can be quite congested, yet most side streets are quiet. 10 to 30 minute commute to the Golden Triangle area, depending on your destination.
Permata Hijau/Simprug
Conveniently located 10 minutes west of the southernmost end of Jl. Sudirman, these well planned communities have wide, tree-lined streets, good infrastructure and green surroundings. Nearby shopping in the Permata Hijau shop houses and Plaza Senayan. Commute time to the Golden Triangle 15 to 45 minutes, depending on your destination.
Pondok Indah
Stately mansions line the major thoroughfare of Jl. Metro Pondok Indah, just south of the Pondok Indah Mall. A well planned community with tree lined streets. Pondok Indah is the closest neighborhood to the Cilandak campus of Jakarta International School. Over 45 minutes to commute to the Golden Triangle, depending on your destination.
Lebak Bulus
Just south of Pondok Indah is Lebak Bulus, also very close to the Jakarta International School. Several very nice housing complexes can be found here. Good access via the outer ring road to all parts of Jakarta.
Kemang
Beautiful homes tucked down alleys and narrow streets, the housing development in Kemang has not been planned. Yet narrow streets and high traffic congestion don't keep expats away from Kemang neighborhoods. Beautiful homes with substantial gardens hide behind tall walls down unsuspecting back roads. 10-15 minutes from the Cilandak campus of Jakarta International School. Nearby shopping in Kebayoran Baru and Pondok Indah Mall. 45 minute to 1 1/2 hour commute to the Golden Triangle. In the heart of Kemang you will find the new Primary School campus for the Australian International School . The present campus however is no more than 10 minutes from this lovely suburb.
Cipete/Cilandak
Located just west and north of Kemang, the development of these areas has not been planned. Yet beautiful homes exist down small alleys and in the middle of kampung. 10-15 minutes from the Cilandak campus of the Jakarta International School. 45 minutes to 1 1/2 hour commute to the Golden Triangle.
Warung Buncit/Pasar Minggu
For those whose children attend the Australian International School, Warung Buncit and Pasar Minggu are close locales. Quiet winding roads and major thoroughfares offer a wide range of housing options.
Bintaro, Lippo Karawaci, Bumi Serpong Damai
Located in West Java, the above are actually past the western suburbs of Jakarta and located in the province of West Java.. Five years ago it would have been rare to find expats living in these neighborhoods. But with the recent moving of the British, German and Japanese International Schools to Bintaro, many expat families are making the choice for proximity to their children's education and an organized living environment despite the lengthy commute for the working spouse. Commute time to the Golden Triangle can be 1 to 2 hours. Lippo Karawaci is often chosen by expatriates working in factories and industrial estates in Balaraja, Cilegon, and beyond. This is a mid-point between the commute to work out west, and the commute into Jakarta for community and recreation activities and shopping.
Kelapa Gading
Located in East Jakarta, this well-planned community is favored by many expats who work in the commercial/industrial estates east of Jakarta in Bekasi, Cileungsi and Cikarang. Easily accessible to the central business areas via 30-minute toll road ride.
Serviced Apartments / Temporaray Housing
After your arrival in Jakarta, you and your family will be spending an enormous amount of energy trying to set up your new lives. The immediate tasks include finding a house/apartment, getting your kids enrolled in school, buying a car, learning your way around town, hiring household staff and making new friends.
Your company may advise or require you to stay in a hotel until you are able to locate suitable housing. If this is the case, ask the company to book you in a hotel that is near the neighborhood you are most likely to live in. Hotel Kristal is a favorite choice, because it is conveniently located to the Cilandak Campus of the Jakarta International School and your children can start school from this temporary residence while you seek a permanent home. Hotel Kristal has suite rooms. These suites have kitchenettes which are great for families or people that quickly get tired of eating out continuously
You may find that you like your temporary residence so much, that you decide to live there throughout your stay. Be sure your temporary/permanent residence has broadband internet connections in the rooms so that you can easily get connected with the world 24 hours a day.
Other alternatives to the traditional hotel are emerging in Jakarta. Some companies may have a guest house where your family can stay for several weeks in a much homier atmosphere. Some apartment buildings offer Serviced Apartments which are fully furnished and equipped for short-term stays. Maid service is also available.
If you choose a Serviced Apartment which is located near the neighborhood you eventually want to live in, you can begin to learn your way around what will end up
being your neighborhood, as well as where to shop for food, furniture and other household needs. You may end up choosing to stay in one of many Serviced Apartments, as they offer excellent prices, elegant living conditions, and often access to fitness and sports facilities for long-term as well as short term residence. Many single people or young couples find this a great short term living solution as it eliminates the necessity and cost of outfitting an apartment. Apartment living has definite advantages over living in a single-family home. For people that frequently travel on business and have to leave their apartment vacant or spouse alone, serviced apartments offer security and peace of mind while they are away.
Undoubtedly your sponsoring company will have recommendations for where you should stay until you rent a house or apartment. Ask them to give you details on the choices you have and the proximity of the temporary housing to the office, school and the neighborhoods you may end up living in. Heavy traffic congestion in Jakarta on a daily basic can result in hours spent in the car if the housing choices are located long distances from the work place, or schooling.
Your company may also advise you to stay in temporary housing until your household goods shipment has cleared customs. The Indonesian government requires that your KITAS (limited stay permit) be issued before your household goods shipment can clear customs. There are ways around this rule, by the posting of a bond, which your company may be able to facilitate. There is nothing more frustrating than spending weeks in a hotel, to move out into your new home, only to find that you have to wait another 1-2 months for your household goods to be shipped and cleared.
While in temporary housing, use this opportunity to get out as much as possible and familiarize yourself with the various expatriate community organizations and the programs and services they offer. You'll hit the ground running if you get out soon after your arrival and get involved in community groups that interest you. It's a great way to make friends and start building a new support group of newcomers, just like you. Members of these groups can often offer solutions to problems or situations that you will experience; saving you frustration and lost time since they have recently experience similar problems personally.
Some apartment buildings favored by expats have informal afternoon teas where you can meet other newcomers and neighbors. Sign up for a Bahasa Indonesia class soon after your arrival, as these classes are a great way to meet newcomers like yourself. Then you will make new friends to explore and learn more about your new home with.
Leasing An Apartment
Advantages to Living in an Apartment
Just as in your home country, there are several advantages to living in an apartment instead of a house, though ultimately it is a personal choice. First, less maintenance is required for apartments due to their smaller size. Also, you will not need to hire as many staff to help you with the upkeep, as the apartment complex has its own security and maintenance crew. The security staff can also accept deliveries when you. re out. Apartment buildings also allow you to live above the street level which can help reduce noise, bugs and rodents.
Looking for an Apartment
When searching for an apartment, you can either go through an reputable agency or broker who can show you a wide range of apartments from their database to meet your needs, or you can visit the apartment complexes yourself.
It is easy to visit apartments on your own, provided you have the names of the complexes and their addresses. All apartment complexes have a management office and their marketing staff will be happy to show you the available, or soon to be available, apartments. More likely than not, the marketing person will also speak English.
You should bear in mind, however, that the apartment management may show you only management-owned apartments or apartments that they represent, and they will endeavor to maintain a relatively high rental. Reputable agencies, such as Koll Residential will be able to show you not only management-owned apartments, but also privately owned apartments within the same complex, for which the rental may be considerably lower.
An agency will provide transportation and pick you up from your hotel or temporary accommodation. Look for a reputable agency that represents you as the tenant and not the landlord on any offers or negotiations on a property, and provides services including: negotiations with the landlord regarding all terms and conditions of the lease agreement, a letter of intent to insure that the apartment is reserved for you, arrangements for payments of deposit, base rent and service charges. An agency should also conduct a pre-lease inspection of the apartment on your behalf and check the following: electrical capacity and overall wiring condition, water supply, telephone, air conditioners, woodwork and structure.
How to Locate Major Apartment Complexes
As was suggested in the Preparing for your Move article on this web site, an initial visit before you move would be a good time to start looking for your new home. If you don't have the chance to make a familiarization trip, you can stay in Temporary Housing (i.e., a hotel or a serviced apartment) until you find a permanent home. During your search you should be equipped with a good map of Jakarta. The best maps to buy are the Falk Plan maps. These maps comes in two versions, the fold-out Jakarta City Map which is great for initial orienting to the layout of Jakarta, and the book version Jakarta Jabotabek Street Atlas which provides more detailed information with a street index. These maps can be found in most bookstores in Jakarta.
The Falk Street Atlas lists major apartment complexes in Jakarta in its indexes well as locates most of them on the map with an “A” symbol in a circle. Other useful information on this map are locations of major shopping centers, schools and office buildings. This can help you decide which areas of town you want to begin looking in. Keep in mind, traffic in Jakarta is heavy; if possible it would be wise to live near places you frequent most often (schools, shops, work). It's best to drive to these areas and see for yourself what the area is like. It would be a good idea to drive from your intended home area to your future work place during rush hour (both morning and evening) to see what the commute would be like.
If you do not have someone from your future employer to drive you around to look for an apartment, you can rent a taxi for several days from Silver Bird or Bluebird (the most reputable taxis in Jakarta). These drivers speak enough English to get you safely to your destination and they also know the location of most apartment complexes.
Buying vs. Leasing
Since most expats stay for only a few years, they usually choose to lease rather than buy an apartment. Apartments in Jakarta are expensive in comparison to other types of housing. Apartment owners can either be individuals or the original developers who are represented through a management office. If you lease an apartment, you are leasing from the owner of that unit and all legal transactions and contracts are made with the owner. In the case of individual apartment owners, the management office for the apartment complex often represents the owner during the initial lease arrangements.
What to Expect in an Apartment
In general, the better apartment complexes provide similar facilities and services. Usually complexes have full fitness/recreation facilities (gym, tennis courts and swimming pool), children's playground and a small convenience store on the premises. More luxurious complexes may even have a putting and chipping green for golfers. A satellite dish or cable television connections are common, though there may be an additional charge for the service. A single phone line is normally provided, and often broadband or dedicated lines for fax/internet.
Apartments, on the whole, are similar to what you would expect in western countries with one exception, the addition of household staff quarters. These usually consist of a small bedroom and a bathroom situated off the kitchen and laundry areas. It is not air-conditioned (most household staff find air conditioning too cold). Some apartments have a separate entrance from the outside which leads directly into the staff's quarters and/or kitchen area. In this arrangement, the door between the kitchen and the rest of the house can be locked, yet the household staff still have free access to the kitchen and laundry work areas as well as access to enter or leave the apartment. This can be beneficial for your privacy, but can also prove to be an additional security problem since the household staff will probably hold a key.
Apartments range in size from studio to 5 bedrooms. Penthouses can have up to four bedrooms plus sitting room, living room and terraces. The predominant feature of penthouses, besides their larger size, is that they are multilevel. Two-bedroom apartments average 125 to 175 square meters and can cost from US$ 1,000 to US$ 3,000 per month. Three-bedroom apartments average 150 to 300 square meters and can cost from US$ 1,500 to US$ 5,000 per month. Normally, rent for the entire contract period is paid in advance with the addition of a security deposit. Therefore, if your lease is for two years you must pay the entire two years up front. This can often be negotiated to pay on a periodic basis.
Please note: during the recent monetary crisis, prices have gone down dramatically and many concessions are being made on rental arrangements. Be sure to explore all pricing possibilities thoroughly.
Types of Apartments
Apartments come in three types:
- non-serviced and furnished
- non-serviced and unfurnished
Serviced apartments are normally the most expensive to rent as they provide maid service similar to star-rated hotels. These apartments are normally furnished, can have one to four bedrooms, a kitchen, living room and perhaps a sitting room. The maid will change the linen, clean your apartment and in some cases even do the dishes. Some complexes have a laundry room and or laundry service, others may provide a washer and or dryer in the apartment.
Non-serviced apartments are furnished or unfurnished. In the 90s there was a building boom in Jakarta where new apartment buildings were constructed and opened nearly every month. While new developments have stopped for the most part since the monetary crisis, there is a good variety and selection of apartments available at the current time. Many of these apartments are located near the “Golden Triangle” which is the main business district. Quite a few new apartment buildings are also being opened along the outer ring roads for easier access to the central business district.
Besides their actual location, the primary differences between different apartment complexes are the arrangement of rooms as well as the quality of the construction. The size of apartments varies as well. One complex may have very small two bedroom apartments while another may have quite large ones.
When inspecting your prospective apartment check carefully for wear and tear on the building and its structure. While most apartments are under 5 years old, the tropical weather and lack of good maintenance may have taken its toll on the building.
Buying Property In Indonesia
For many years Indonesia has decreed that land in Indonesia can only be owned by Indonesian citizens. Thus, if you want to buy a house (as a foreigner), they wouldn't have let you in the past.
In the late 90s, new laws were enacted so that foreigners are now permitted to purchase apartments and office space in Indonesia if the building has a strata title status. This enables the foreigner to own the apartment or office space but not the land on which it stands.
Purchasing an apartment or office under Strata Title
Ownership of offices and apartments is possible through strata title deeds, but the set of laws and regulations that were enacted in 1996 are still somewhat unclear and ambiguous. Therefore, to our knowledge, no foreigner has actually been able to receive a strata title certificate of ownership to reflect their office or apartment ownership.
The 1996 regulation (No. 41/1966) states that foreigners who reside in Indonesia, or visit the country regularly for business purposes, can purchase a home, apartment or condominium as long as it isn't a part of a government-subsidized housing development. However, foreigners can only hold land-use deeds, and most developments hold right-to-build deeds. As it stands now, it's not possible for someone to have a land-use deed for a sub-unit of a right-to-build deed. The length of these titles varies as well. Therein lies some of the difficulties and unclear ownership issues.
Convertible Lease Agreement
One way for foreigners to go ahead an purchase property despite these legal ambiguities is to sign a Convertible Lease Agreement with the apartment property management office to purchase an apartment. Basically what this agreement entails is that the foreigner may purchase the apartment, but the title is still held in the name of the developer or property management firm. This lease agreement is for a definite period.
The Convertible Lease Agreement states that if and when the prevailing laws and regulations permit the Lessee to become legal owner of the apartment/strata title unit, both the Lessor and the Lessee shall be obligated to sign a Deed of Sale and Purchase and the title shall be transferred to the foreign owner.
If you are interested in purchasing an condominium through this type of agreement, investigate the property management company thoroughly. In the current economic downturn many property developers are undergoing serious economic pressures and construction on many properties has been postponed or canceled. Show your contracts to a bona fide lawyer to ensure that all legal implications are covered thoroughly.
Another way that you can purchase a condo is by purchasing the property and having it in the name of an Indonesian citizen. Needless to say, this must be someone you trust implicitly since, according to the law, this person would be the legal owner.
Single Family Dwellings - Houses
Ownership of single family dwellings faces even greater legal issues as foreigners are not allowed to own land in Indonesia. Where the home you want to purchase is part of a housing development, the developers can often work something out for you to 'purchase' a home through a long term lease agreement.
One reader writes of his positive (and successful) experience in this matter:
"Basically, I hold full title to the house, in my own name. The fact that my wife is Indonesian was not considered (in fact, my wife was not considered at all). She also owns property, and we could see no difference in the title and rights of mine. The developer owns the land the house is built on, and I own a 30-year fully paid up lease on the land, which by law the developer has to extend for a further 30 years on request. At that time they can charge me a nominal rent, which I can opt to pay for now at US $35 per year. I can sell or bequeath (but not sub-lease) the lease together with ownership of the house as I choose. The developer can sell the land, but only under the same covenants as already exist. These provisions apply to Indonesians as well, although Indonesians could purchase the land outright if the developer agreed to sell, and Indonesians could sub-lease the land if they want.
If my wife was not Indonesian, and I was not present in Indonesia for a full calendar year, in theory the state could take my house unless I could prove that "reasonable efforts" to sell had failed, but just being anywhere in Indonesia for one day would re-set the clock. As my wife is the sole beneficiary of my will and is Indonesian, this rule does not apply in my case.
I purchased the house without finance; I'm not sure what effect there would be in title if you took a loan or mortgage to assist with the purchase. I would imagine getting a mortgage would be the hardest part for a foreigner, and the finance company would definitely retain powers to repossess in event of default. Such things are very closely regulated at home, but they probably have a lot more scope for legally lining their own pockets here. On the subject of payment, I paid the deposit in rupiah cash, because that's what the developer wanted at the time, but then he preferred dollars for the balance, so I paid dollars at a mutually acceptable rate. There are no restrictions on how you pay for a personal transaction - you could pay with groats (or even goats!) if you wanted."
Buying Land
By Indonesian law a foreigner can not own land in Indonesia.
If a foreigner chooses, he/she can own land 'indirectly'. To do this you need to have an agreement between the foreigner and an Indonesian, signed with the witness of a notary public. In the agreement the Indonesian is the 'legal owner' while acknowledging that the foreigner is the 'rightful owner' of the land and thus the Indonesian owner would carry out any instructions from the foreigner regarding the land, including selling the land at certain price with the funds to be paid to the foreigner owner.
It is not clear, however whether or not these types of agreements are at all enforceable under Indonesian law and the foreigner is at risk in the true ownership of his investment.
All land titles within Greater Jakarta (DKI) are subject to the conditions of Presidential or Governor's decrees. Essentially, this affects the provisions for Hak Milik titles in the Jakarta DKI area.
Special Provisions for Batam
The rules for property ownership by foreign nationals in Batam fall under Decree No 068/KPTS/KA/III/1999. This regulations states that foreign nationals or companies are permitted to 100% own residential or commercial property in the Barelang area (Batam, Rempang and Galang). The only properties excluded from this decree are low cost and very low cost housing, but includes all other types of building structures.
Hak Guna Bangunan vs, Hak Milik
Hak Guna Bangunan is only the right to use a building for a certain period of time and then has to be extended. The owner of HGB land is the Indonesian government.
Only with Hak Milik do you actually own the land or building. Hak Milik does not need to be extended.
Indonesian Government Regulations regarding property titles
Amendment to the Regulation of The State Minister of Agrarian Affairs/Chairman of the National Land Agency No 7/1996
"Foreigners may purchase the Right of Utilization (Hak Guna Bangunan) over land with the Right of Proprietorship (Hak Milik) from the Holder of said Right of Utilization along with houses or purchase the Right Utilization and later contract houses on it. The purchase of the Right of Utilization shall be conducted pursuant to the effective stipulations that are, by virtue of a deed made by land conveyance, which shall later be registered in the Land Office. Likewise, the requirements or construction of houses must abide by the prevailing stipulations, for example with respect to the Building Construction Permit (IMB)."
Foreigners may own a house and obtain the title on land by means of the following:
- Purchasing or contracting a house on land with the right utilization with the right proprietorship
- Purchasing an apartment unit contracted on land with the right of utilization over state land
- Purchasing or contracting a house on land with the right of Proprietorship or the Right of Lease over building on the basis of a written agreement with the owner of the land title concerned
- Before you decide to sign on the dotted line for any property purchase, be sure to consult with a reputable lawyer who specializes in Indonesian property ownership by foreigners to be sure you understand the legal status of your ownership. Consult your embassy or knowledgeable friends for a lawyer that they would recommend.
Housing Agents And Brokers
Every expats that comes to Indonesia has a different story to tell about how they found their home. In the worst cases, the story details a long exhaustive quest for just the right house for the family. In many stories, unqualified agents take newly arrived expats around to houses that are outside their budget, in unacceptable condition, don't match the needs of the family or are located far from the neighborhood that the family wants to live in. The complaints made by unhappy newcomers after days spent stuck in traffic looking at unsuitable houses make up the tales of expat nightmares!
These nightmares can be avoided by using a reputable agent/broker to help you with your search. Your choice of housing agents and brokers includes independent brokers, franchised real estate brokers affiliated with multinational real estate firms and corporate housing services/relocation services.
Independent Brokers
As in so many business dealings with expats in Indonesia, there are a multitude of brokers that would like to help newly arrived expats find a house. Independent brokers are self-appointed agents who use word-of-mouth and personal connections to try to locate potential residences for expats. They may or may not actually be the sole representative of the landlord of individual properties, but since the landlord pays their fee, they have a vested interest in getting you to pay the highest amount possible to lease the house.
Many newly arrived expats are referred to such brokers by someone in their sponsoring company - from the HR or Formalities departments in a major multinational or by other staff in key positions. These independent brokers often offer the person 'inside' the company a percentage of their fee for a successful signing. While this type of arrangement does benefit someone in your sponsoring company and/or their relatives or friends, there is no guarantee whatsoever that this person has the personal or business resources or the skills to help you find the most suitable house for your family.
Most independent brokers find houses through word of mouth and networking with other brokers. While many brokers specialize in a particular area, they will be willing to help you find a house in other areas as well. What they do then is contact other brokers who have contacts in that area that know what houses are available.
Utilizing this system may work, though the search is much lengthier. You will also undoubtedly see a lot of unsuitable homes in the process, as your broker will not be personally familiar with most of the houses they show to you. The negotiation process will also involve more than one broker, sometimes up to 3 or 4, since every broker that had a hand in referring the house will want a piece of the commission pie. The broker you are dealing with may not be the one actually talking to the potential landlord, which can cause lots of problems as well.
Independent brokers/agents should NOT be charging you anything for their services since they receive their commission from the owner. While the agent is providing assistance to you, remember that it is the owner that is paying the agent's commission. Be cautious about expecting that they will always promote your side at the bargaining table when they are 'working for' the owner as well as paid by the owner. There may be no advantage to them in trying to find the best deal possible for you as their commission will be bigger if you have to pay more for the house. Current commissions run from 5% up to 10%, so you can see that when dollar rents are at stake, the commission is significant.
The 'Jakarta Shoppers' Guide, published by the American Women's Association, contains a listing of independent housing brokers that have been recommended by expatriates who have been satisfied with their services.
Franchise Real Estate Brokers
In recent years, rising consciousness of the disadvantages of using independent brokers, and a demand from expats and Indonesians alike for more professional real estate services, has led to an increase in professional real estate brokers in Jakarta. Multinational real estate brokerage services have franchised in the local market and trained real estate professionals in international practices. This industry, however, is still in its infancy. There is no central computerized Multiple Listing Service in Indonesia. Each individual agency compiles its own database of listed houses.
A disadvantage to using a franchised broker is that they will only show you houses that they have listings for. Also, these franchises are purchased by individuals and while training from the franchise company does occur, a varying level of professionalism is seen from broker to broker.
Corporate Housing Services/Relocation Services
Going one step further, corporate Housing Services provide expatriates, and especially their sponsoring companies, with a big advantage. Their goal is to truly represent the needs and concerns of the client company and its expatriate staff. They are committed to finding you the best deal possible. This is because they want the client relationship with the company to be long term. Their success is measured by the continued use of their services by their corporate clients, who are pleased to know that the housing agent will be 100% on their side throughout the search and into negotiations with the prospective landlord.
In lease negotiations these firms are committed to representing you and your needs. They will check the entire condition of the house and insist on repairs and upgrades according to your needs. Especially where they will carry a maintenance contract for the client, they want to be sure everything is in good operating order in the house before you move in. Since they don't represent the landlord, they are not under any pressure to lease you one house over another ... their goal is to fully meet the expectations of the expat family.
These firms often also provide comprehensive relocation services to expats relocating to Jakarta. In addition to home search services, they offer orientation programs, lease negotiation/re-negotiation services and executive housing management. Many firms have found that corporate housing services save their companies a lot of money over in-house housing departments as these staff too often follow corrupt practices.
These firms' extensive contacts can also help you to find subleases for short-term stays.
Housing Assessment Survey
One way you will be able to determine the professionalism of the agent you use, is by whether or not they use a housing survey to determine the needs of the incoming expatriate families. These surveys help professional agents narrow down the search to the most acceptable houses.
When your agent conducts the Housing Needs Assessment, be VERY specific about exactly what you are looking for in a house or apartment. Talk about your lifestyle, particular interests, the needs of each family member, personal and company entertaining needs and other personal concerns to ensure that you get the most appropriate matches possible and that the agent isn't wasting your time showing you homes that don't fit your family's needs. Ask LOTS of questions about each house you see. You will soon determine just how familiar the agent is with the property and its owner.
Housing Costs and Terms
One of the most pertinent questions you should know before you start your housing search is the amount your company allots for your housing allowance. Housing of acceptable standards ranges from nice apartments for as little as US$600/month (in South Jakarta) to stately mansions for US$ 5,000 a month and more. Needless to say, there is a wide variety of choices in between these two extremes. Nice homes in good neighborhoods are available for US$ 1,500 to $2,500/month. For higher rents, the house should have facilities for entertaining or other substantial features to justify the additional cost.
Prior to the economic crisis, beginning in late '97, it was a landlord's market as expatriate-standard houses in good condition in prime locations were hard to find. Today's market presents a very different reality. Due to the economic downturn and the departure of many expatriates, there are plenty of beautiful homes on the market. Rents are coming down too as the landlords' market turns into a renters' market.
Previously established practices of asking for 2 to 3 years rent in advance have also changed, with owners willing to rent for shorter periods of time or asking only one year's rent in advance. Some apartments are available on three-month renewable leases. Renters of apartments may ask the landlord to peg the rupiah/dollar exchange rate at something lower than the market rate. This is not as common with homeowners. Private homes were not paid for with foreign US dollar loans, like the big apartment towers probably were, so a rupiah payment should be acceptable to the owner in today's economic conditions.
Bargain vigorously to protect the financial interests of your sponsoring company and to prevent inflationary pressures in the prices of houses rented to expats. The lowering costs of house rentals is a welcome relief for foreign investors who must cover high living costs for their expatriate staff. The same house, rented to an Indonesian, would go for 1/5 the price as they don't walk in the door with a dollar housing allowance to begin with.
Newspaper Classifieds
The Jakarta Post Classifieds has many listings for houses and apartments, either offered by brokers or direct from owners and property management firms. Be cautious when calling listings in the newspaper as it's difficult to determine the background and reliability of the persons representing the houses. Most listings are from independent brokers. Utilizing an independent broker, you have little legal recourse or professional representation in the lease negotiation process, such as you would have through professional corporate housing services or a real estate brokerage service.
Familiarization Trip
If you are fortunate enough to have your company send you on a 'look-see' trip in advance of your moving to Indonesia, use a portion of this time to contact real estate brokers and see a few homes or apartments to get an idea of what types of homes/apartments are available. While you can't expect to find your new home on a familiarization trip, you could at least become more knowledgeable about what neighborhoods and homes are like and what your preferences may be.
Better yet, you will have a feel for which brokerage service you will want to use when you actually start your search. Once you've made that decision, you can keep in touch with them in the months prior to your arrival and they can short-list potentially suitable homes before you arrive.
Finding a house in Jakarta can be a long series of hassles or a pleasant, professionally organized adventure. Utilizing a professionals in the field will go far to reduce your frustrations and speed up the process of looking for your new home in Jakarta.
