Jabodebek LRT operation benefits Adhi Commuter Properti
This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.
Investor Daily - Pengoperasian LRT Jabodebek untungkan Adhi Commuter Properti
1 March 2023
Jakarta - The operation of Jabodebek Light Rail Transit (LRT) in the middle of 2023 is reckoned to benefit PT Adhi Commuter Properti Tbk (ACP).
ACP President Director Rizkan Firman said that the excellent construction progress of Jabodebek LRT is directly affecting the public’s interest in dozens of LRT City projects that are integrated with various mass transportations, especially the LRT, and are implementing transit-oriented development (TOD).
“The sales of almost all LRT City projects can significantly increase due to the operation of Jabodebek LRT,” Rizkan Fauzan said in his written statement recently.
He added that the public can soon enjoy the ease and advantages of living in TOD areas develop by ACP, especially regarding the ease of mobility that feels like owning a private train.
One of ACP’s projects that is directly connected to Jabodebek LRT is LRT City MTH with its building MTH 27 Office Suites that is located in one of Jakarta’s central business districts, MT Haryono. MTH 27 Office Suites is an office building with 16 floors that has a skybridge that spans 17 metres to connect the commercial area of LRT City MTH to Ciliwung LRT Station, which can attract a traffic of thousands of people every day.
“Currently, all floors of MTH 27 Office Suites have been fully occupied by PT Adhi Karya with a commercial area that is specialised for food and beverage tenants. The skybridge that connects the commercial area of MTH 27 Office Suites is attracting potential tenants to develop their businesses,” Rizkan said.
This is proven by several tenants that have entered and will enter soon, including Elarte Sport Café, Roti Boy, and Indomaret Point, as well as Trickburger and Ketjap Bistro that will follow soon.
LRT City MTH-MTH 27 Office Suites Project Director Setya Aji Pramana added that its strategic location is making the area a community and meeting hub that can be enjoyed while viewing the LRT station and Jakarta city.
“MTH 27 Office Suites is a continuously developing response for various business needs,” he said.
He explained that the office building provides 13 floors of strata title office spaces that reach 26,600 square metres (m2), 4 basement floors, a banking area, and an ATM centre. “Besides that, there are two floors of commercial area for cafes, restaurants, and other [tenants],” Setya Adji explained.
Promising area
Setya Adji said that MTH 27 Office Suites, on top being integrated with an LRT station, is also integrated with other public transportations, such as the commuter line and TransJakarta that are all within walking distance. It is also near Halim Perdanakusuma Airport.
“The area is also surrounded by toll road accesses, so this product is very complete in terms of facilities, infrastructure, integration with public transportation, ease of accessibility, and other [aspects],” he said.
The completeness of the area is sustained by Jabodebek LRT that will operate soon, which will make commercial facilities in the location beneficial for business activities. This area will be passed through by thousands of people every day from the LRT station, which include employees, occupants, and guests of the building.
This is reckoned to be a large captive market for businesses. With an affordable lease price, this commercial area is a complete package for a promising business location.
On a separate occasion, a property consultant, Colliers International Indonesia, predicts that property business opportunities, especially for housing, around TOD areas have a bright prospect.
Colliers International Indonesia Research Senior Associate Director Ferry Salanto revealed that the trigger for the increase in property investment in TOD areas is the expensive transportation cost due to the increase in fuel prices. Then, there is the increase in parking tariff and the plan to implement the paid road system in Jakarta. Moreover, there is no certainty of travel time, which makes housing around TOD areas to increase apartment sales in TOD areas.
“A study result on housing in TOD areas shows how apartment sales are still steady with increasing prices. This means that the investment prospect in this TOD area will improve in the future,” Ferry Salanto said in Tangerang recently.
Ferry said that, even though the result of the study conducted by Colliers shows that the market that purchases apartments in TOD areas is the lower middle class, they can still attract the upper middle class in the future. For example, idle areas around MRT. “Until now, there has yet to be a premium apartment for the upper middle class built in MRT areas,” he said.
However, for other TOD areas, such as around the LRT or the commuter line, upper middle-class apartments have started to be provided. If the LRT has been completed, starting from Cibubur to Bekasi, it will trigger apartment sales in TOD areas. “With just the LRT, apartments in TOD areas will improve apartment sales,” he said.
Meanwhile, regarding financing from banks for TOD projects, PT Bank Tabungan Negara Tbk (BTN) said that they are interested. The state-owned bank is supporting apartment financing in TOD areas.
BTN President Director Haru Koesmahargyo said that his company is currently cooperating with Perumnas to develop vertical housing in TOD areas in Pondok Cina, Tanjung Barat, Bekasi, and Tangerang.
“We are also providing financing for vertical housing, especially the ones in TOD areas that have a large interest. We have been cooperating with Perumnas,” Haru said.
