Indonesia's journey towards sustainable real estate

More green buildings enter Jakarta office market

November 03, 2022
  • Yunus Karim
  • Prisca Winata

Indonesia has committed to a net zero carbon emission target and is expected to reach this goal by 2060, or sooner. With this commitment, stakeholders in Indonesia shall start incorporating sustainability into their strategic planning. One of the initiatives that corporations can take is to reduce carbon emissions in the real estate sector, which contributes around 40% of global carbon emissions.

The implementation of sustainable building in Indonesia was encouraged by the establishment of the Green Building Council Indonesia in 2009. Subsequently, due to continuous growth in the importance of sustainability, Indonesia’s government has issued several regulations to spur the implementation of green buildings.

Jakarta is the first city with specific regulations for implementing green buildings. In 2016, the Jakarta Provincial Government committed to reduce energy consumption, water, and CO2 emissions by 30% by 2030. Hence, building owners in Jakarta, both new and old, must implement the green building concept immediately to achieve the targets.

Read the full report to find out why green office buildings are gradually increasing in Jakarta, both in the CBD and Non-CBD areas. As of 2Q22, there is around 1.9 million sqm green office in Jakarta with 42% of Grade A office buildings obtaining green certification out of approximately 10 million sqm of office in Jakarta.

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