Since his election in 2014, Indonesian President Joko Widodo (Jokowi) has promised to increase investment into the nation's infrastructure. 

To date, this investment has taken the form of new toll roads, power stations, airports, and seaports across Indonesia. However, the two most anticipated projects in Jakarta are the Light Rail Transit (LRT) and Mass Rapid Transit (MRT) networks, both of which are expected to be completed in early 2019.

The MRT runs from South Jakarta through the heart of the CBD to the Hotel Indonesia roundabout in the city centre. While the LRT connects decentralised locations in the south and east of Greater Jakarta to the CBD.

Commercial buildings with direct or convenient access to the MRT are likely to outperform the rest and developers and investors have shown a keen interest in development sites with MRT access.

Already, locations on the route of the MRT are considered decent places to live and the good location factor is, to an extent, captured in residential prices even before the addition of the MRT network.

The LRT is set to reduce travel times from parts of Greater Jakarta from one and a half or more hours to approximately thirty or forty minutes (depending on traffic).

JLL suggest that the LRT and MRT networks may make inconvenient locations convenient overnight and some local and international developers are already looking to tap into growing demand for these locations.

For more information about changes to Jakarta's real estate market, email James Taylor, Head of Research at JLL Indonesia via the contact details listed below. 

Source: JLL Indonesia

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