RI among Asia-Pacific’s Top Expansion Destinations
Indonesia remains attractive to expansion-minded multi-national firms despite global fallout from the U.S.’ sub-prime crisis, a survey reveals.
According to a report by global real estate management firm
Jones Lang LaSalle, of 15 nations surveyed in the Asia-Pacific
region, Indonesia ranks sixth in a list of top destinations for
business expansions ahead of Malaysia, Australia, Cambodia,
Japan, Korea, Thailand and Hong Kong.
China topped the list, followed by India, Vietnam, the
Philippines and Singapore.
Eighty-three percent of the multi-nationals said they would
increase or maintain their current growth rates in the region,
while 28 percent accelerated the growth of their operations in
the region in this year’s second quarter, the report shows.
The survey company’s CEO for regional business lines and
corporate solutions John Forrest said emerging markets in Asia
were the world’s bright spots for growth at the moment.
Asian countries were less affected by the sub-prime turmoil,
with the property sector remaining bright, he said.
“We’re still seeing strong demand for space. However, an
uncertain economic environment is forcing corporations to find
smarter ways to manage their growth,” Forrest said.
Demands for commercial office spaces in Jakarta’s commercial
business district continued to grow, with the occupancy rate in
the first quarter of this year rising 24 percent, the report
shows.
The growth was due mostly to tenant expansions, the
company said.
New office buildings in Sudirman and Kuningan in South
Jakarta accounted for the bulk of leasing activity, mainly
involving banking, oil-and-gas and services companies.
Jones Lang LaSalle surveyed 30 senior corporate real-estate
executives from leading multi-nationals in Asia-Pacific in the
second quarter of this year.
The survey covered three sectors financial services,
technology and consumer goods.
Among the three, the financial services sector was predicted
to be the most aggressive this year based on data showing that
44 percent of the companies added growth plans in the first
quarter of this year, and 33 percent predicted higher growth by
the end of this year.
The consumer goods sector, on the other hand, showed mixed
responses, with one third of the companies saying they would
expand their growth plans, another third saying they would
downsize their businesses and the rest expecting to maintain
their current expansion rates.
Companies in this sector will likely look to initiate
operations in the region to take advantage of promising new
markets or shift current operations within it to search for
lower-cost destinations. (SAILINGS/BKPM/NT)
