October 2, 2025 | 11:04 am
TEMPO.CO, Jakarta - Colliers Indonesia said the average monthly occupancy rate of hotels in Jakarta until August 2025 has yet to exceed last year's figures. Ferry Salanto, Head of Research Department at Colliers Indonesia, explained that reduced government market since the budget efficiency took place earlier this year contributes most to this situation.
"This is indeed because the government market is relatively low, especially at the beginning of the year. The impact of the policy continues to be felt to date," he said during an online discussion on Wednesday, October 1, 2025.
Ferry said the weakening government demands severely affected hotels in business centers, such as Jakarta and even Surabaya. Geopolitical issues also affect the hotel businesses.
Despite the plunge in hotel occupancy rates in Jakarta, Ferry revealed that the average daily rate (ADR) in August 2025 was actually higher compared to the same period last year. However, he did not specify the extent of the rate hikes. "What is interesting here is that the monthly average price level is actually above average," he said.
Aside from the government, the Jakarta hotel market is also heavily backed by private corporations, as well as free independent travelers (FIT). Therefore, hotels can set higher rental rates than before, as their market is non-governmental.
"So, it seems that even though the occupancy is low, the ADR level that hotels can obtain is relatively higher," said Ferry.
Regarding supply, he said that the market conditions are relatively under control. There has been no significant addition until 2028, except for the entry of four-star hotels. "In general, this is not too worrying, unlike a few years ago when the hotel growth was really rapid," Ferry said.
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