Finding a location for your company in the Jakarta area

Michael Lundager's picture

 
This article is not the absolute true. Jakarta is vast and the possibilities are endless and that means I can only scratch the surface of this topic in this article.
The traffic situation influences these decisions heavily; you have to take into account the employees have to be able to reach the workplace within reasonable traveling time.
You also have to take into account that if your company is dependent on a lot of material from and to seaports, airports or even the main roads.
In some cases you have to take into account whether the power stability is ok in an area or not – or whether the Internet works constantly and with reasonable speed in the area you choose.
Normal parameters outside of infrastructure and related problems are price, prestige and crime rates in the area you might choose.
Relocating outside the first choice of area can be both expensive and related with problems like employees that do not want to move etc. If you are building big, it is essential to pick the right spot the first time – and in Indonesia factors that are usually given in the West are not necessarily given.
Office space
The central business district gives you access to a large possible client base, if you are in the service industry and the company image factor is big. However, getting to the central business district is a daily living hell and the price level is high.
South Jakarta (Cilandak, Pondok Indah) near the ring road is a much better choice when it comes to traffic access, the prices are at the same level as the central business district and the company image factor is a little less.
BSD city is an area that has been developed lately, a lot of the German speaking community has moved out there. It is a little far from the city, but all facilities are available and the price level is a little less than the above mentioned locations. Close to the airport.
North Jakarta is also close to the airport and seaport, rent is cheaper than most other places and you are nearby the ring road. However, North Jakarta suffers occasional flooding and this phenomenon seems to be a growing problem.
Industry
BSD/Tangerang is one of the newer developed areas; it is close to the airport and has access to the toll road out of Jakarta. You have great access to blue collar employees.
Cikampek is the largest industrial area in Indonesia. It is located 50 km east of Jakarta and has good access to toll roads. Access to the sea and airport is a problem. However a main railroad for containers and a dry port is under development.
East Jakarta (Pulogadung) is one of the more traditional industrial areas. It is fairly close to Jakarta and the seaport, but land is sparse and expensive.
Karawang is located 50 km west of Jakarta and is newly developed area. Karawang has a number of good facilities like universities, apartment buildings, parks etc. but it is located far away from Jakarta.
 
Outside Jakarta
Another location option that is worth mentioning, especially if you have plans of building large with many employees is to look outside the Jakarta area towards the outskirts of i.e. Bandung, Bogor, Surabaya, Semarang or other larger cities.
Salary levels outside Jakarta are lower and so is the land price. However, if you choose to go that route be aware of CSR (Cooperate Social Responsibility), developing in many of these areas – your company will gain large benefits by improving schools, kindergartens etc.

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