Frequently Asked Questions (FAQs)
This is list of frequently asked question from our clients like general questions before renting our office space
Office rents quoted in Gross rent? And how the charges?
Gross Rent components is Base rent and service charge the quoted using a monthly rental rate per square meter. The Base Rent is typically can be fixed for two or three years, while the Service Charge is subject to review annually based on increase in a building's operating costs. Rent charges usually may be due quarterly, semi-annually or annually in advance. Both the Base Rent and Service Charge are subject to VAT or Value Added Tax (PPN) of 10%. Rents for higher quality buildings are most often denominated in US dollars, but Rupiah denominated rents are prevalent in the market with such rents being quoted either in Rupiah or in US dollars with a fixed exchange rate.
Is security deposit required for office leasing?
Yes, A security deposit of 3 months gross rent is normally required before the lease commencement date and it is fully refundable upon the expiration of the lease providing compliance with all lease conditions. Upon the execution of a Letter of Intent, the tenant will typically be required to pay a booking fee equal to 1 month of gross rent. After the Lease Agreement is signed and prior to occupancy, an additional two months of gross rent must be paid to complete the security deposit together with the first advance payment of gross rent. Additional deposits are required for telephone lines in amounts of from Rp. 2,000,000 per non-IDD line to Rp. 5,000,000 per an IDD line.
What is typically not included in the rent?
The tenants should have extra budget for charges that not included in the rent such as:
• electricity for outlets and lighting (if separately metered), In strata-titled properties, the cost of air-conditioning may also be the responsibility of the tenant.
• overtime electricity and air-conditioning.
• maintenance within their premises.
What does the service charge cover?
Service charges generally include:
• 24 hour building security.
• the cleaning and maintenance of common areas during normal office hours.
• Electricity for lighting and outlets during office hours may be included in the service charge if the landlord not using separately metered for the premises.
How much the charges for electricity when used separately meter?
The charges is vary from 1 - 2 US$ / Sqm/Month. It depends on the electronic device and the used of the electricity in your premises.
What measurement standards are used ?
The measurement standards used for lease in Jakarta apply to the rental rate is semi gross area. The semi-gross sqm of an office is nett sqm area occupied by the tennats added by a common area factor. The common area factor usually ranges from 10% to 18% and represents the tenants share of the building's common areas including elevator lobbies, toilets, pantries and corridors. Accordingly, the total semi-gross area of the building is the equivalent of the building's gross area less all vertical penetrations.
What is the typical lease term ?
Lease terms typically vary from 2 years until 5 years, but may be as long as 10 years.
Do tenants have an automatic renewal right?
Yes, Tenants will be informed for option to renew their lease at market rents after the initial lease term, Ussualy for further lease renewals there will be an increases price for rent and need to be negotiated in the original lease.
Could tenants sublease to other tenant?
Yes, Tenants are typically allowed to sublease the premises during the lease term with approval of the landlord first.
How do the tenant maintain and process for handing back the space?
Tenants should maintain the condition of the premises in good order as well as to remove the tenant fit-out at the end of lease if requested by the landlord. In practice, most landlords request tenants to leave the fit-out in an "as-is" condition and tenants willingly comply.
Are office buildings leased out in fitted condition?
The standard office buildings, they will provide a concrete floor, demising partition, a drop ceiling with lighting, sprinklers, and an air-conditioning system. But some of the office premises have the fit out condition from other tenants.
Will landlord provide free fitting out period?
Yes, Landlord will give free fit-out period of between 1 month until 3 months depends on the size of the premises. The tenant may be charged for the use of electricity and water during construction. All fit-out costs are considered the responsibility of the tenant and fit-out allowances are rare.
How much is the typical cost for fit-out, furniture, basic telecom and cabling, etc.?
Fit-out costs range from US$150 – US$ 350 per net sqm. fit-out costs vary widely depending on the design, specifications, materials and size of the space to be constructed.