JAKARTA - Knight property consultant Frank Indonesia revealed that the transfer of the State Capital (IKN) to the archipelago, East Kalimantan opened up opportunities for additional office rental stocks (lease office) from buildings and central government offices in Jakarta.

Senior Research Advisor Knight Frank Indonesia Syarifah Syaukat or called Sari said that the transfer of IKN opened up opportunities for additional lease office stocks from government office buildings.

"Recently, we have often heard about the discourse regarding the planned transfer of IKN, and at the same time we also see that the distribution of government offices and buildings in CBD and outside the CBD Jakarta is quite a lot. At least we recorded that there are around 40 government office buildings in Jakarta," Sari said in an online seminar, quoted from Antara, Thursday, February 23.

What are the opportunities for this building or government office to enter the office rental market? The initial step needed at this time to perform or find out the status of the building before entering the list of offices and buildings leased is to build an audit.

According to Sari, building audit is the first step to identify the status of a building or government office in Jakarta so that it can then be built and upgraded.

Building audits will identify building status through profiles, including location, building age, building quality, especially main facilities, mechanical electrical, aspects of Health, Safety, Security, and Environment (HSSE), as well as supporting facilities.

The rebuild or retrofitting step is an option for the building upgrade process, after the government building has undergone a building audit.

Buildings that have been upgraded in general will have an increase in rental value and sales price of between 12.3 percent and 18 percent.

Previously, Indonesian President Joko Widodo (Jokowi) said Jakarta would continue to be repaired and become a business and tourism city, while the capital city of Nusantara (IKN), East Kalimantan, became a government city.

Jokowi explained that Indonesia is a big country, so it is only natural to have cities such as Jakarta and the archipelago. This is the same with the United States which owns the cities of New York and Washington DC, or Australia which owns Melbourne and Sydney.

However, the main reason for IKN development is economic equality and welfare. Currently, Indonesia's Gross Domestic Product (GDP) is concentrated on the island of Java with a portion of up to 58 percent, even though Indonesia has 17 thousand islands.

This enforcement, said Jokowi, was to abandon Javanese economic security and turn into a central Indonesia.


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